Indostar Capital FinanceNSE:INDOSTAR -1.46%70 Gross Margin % is 37.08% as of Mar. 2026, which is 24% below its 10-year median of 48.52. GuruFocus rates NSE:INDOSTAR with a GF Score™ of 70/100 and a GF Value™ of ₹228.48 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 386 Credit Services companies, Indostar Capital Finance ranks worse than 75.39% on this metric.
NSE:INDOSTAR's Gross Margin % is ranked worse than 75.39% of 386
companies
in the Credit Services industry
Industry Median: 51.845
vs NSE:INDOSTAR: 29.85
Indostar Capital Finance had a gross margin of 37.08% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Indostar Capital Finance was -12.30% per year.
Indostar Capital Finance (NSE:INDOSTAR) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Indostar Capital Finance had a gross margin of 37.08% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Indostar Capital Finance Gross Margin % Related Terms
Indostar Capital Finance Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:INDOSTAR vs V, MA, AXP: Gross Margin % Comparison
For the Credit Services subindustry, Indostar Capital Finance's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Indostar Capital Finance Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Indostar Capital Finance's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Indostar Capital Finance's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Indostar Capital Finance (NSE:INDOSTAR) has a Gross Margin % of 37.08% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Indostar Capital Finance and its competitors. This is 24% below median its historical median of 48.52. Over the past decade, Indostar Capital Finance's Gross Margin % has ranged from 21.11 to 66.76. According to the industry distribution chart, Indostar Capital Finance ranks #291 out of 386 companies in the Credit Services industry, placing it in the top 75.4%.
Is Indostar Capital Finance's Gross Margin % too high?
Indostar Capital Finance's current Gross Margin % of 37.08% is 24% below median its 10-year median of 48.52. Over the past 10 years, this metric has ranged from a low of 21.11 to a high of 66.76. The Credit Services industry median Gross Margin % is 51.85. Indostar Capital Finance's value of 37.08% is 28.5% below this industry median. Based on the distribution chart, Indostar Capital Finance ranks #291 out of 386 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, Indostar Capital Finance has a GF Score™ of 70/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Indostar Capital Finance's Gross Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Indostar Capital Finance ranks #291 out of 386 companies for Gross Margin %. This places Indostar Capital Finance in the lower half of its industry. The industry median Gross Margin % is 51.85. Indostar Capital Finance's value of 37.08% is 28.5% below this benchmark. Historically, Indostar Capital Finance's own Gross Margin % has ranged from 21.11 to 66.76 over the past decade. While the company's 10-year median is 48.52 vs. the industry median of 51.85, Indostar Capital Finance has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Credit Services company?
The median Gross Margin % among Credit Services companies is 51.85, based on 386 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Indostar Capital Finance's current Gross Margin % of 37.08% is 28.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Indostar Capital Finance and its competitors. For the Credit Services industry, the median Gross Margin % is 51.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Indostar Capital Finance's current Gross Margin % is 37.08%, which is 24% below median its own 10-year median of 48.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indostar Capital Finance stock overvalued right now?
Based on GuruFocus' analysis, Indostar Capital Finance (NSE:INDOSTAR) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹228.48, compared to a current price of ₹256.65 — trading 12.3% above its estimated fair value. The current Gross Margin % is 37.08%, which is 24% below median its 10-year median of 48.52 and 28.5% below the Credit Services industry median of 51.85. Indostar Capital Finance's overall GF Score™ is 70/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Indostar Capital Finance (NSE:INDOSTAR), the current Gross Margin % is 37.08% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Indostar Capital Finance (NSE:INDOSTAR) Overvalued in 2026?
Based on GuruFocus' analysis, Indostar Capital Finance stock appears to be overvalued.
The current stock price of ₹256.65 is trading 12.3% above its estimated GF Value™ of ₹228.48.
GuruFocus considers Indostar Capital Finance to be Modestly Overvalued.
Key valuation signals for NSE:INDOSTAR:
Gross Margin %: 37.08% (24% below median its 10-year median of 48.52)
GF Value™: ₹228.48 vs. price of ₹256.65 (12.3% above fair value)
Industry Position: 28.5% below the Credit Services median (#291 of 386)
No single metric tells the full story. See the NSE:INDOSTAR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Indostar Capital Finance Ltd is a non-banking finance company. It is engaged in the business of lending to used and new commercial vehicles, corporates, SME businesses, and Micro businesses. Through its subsidiaries, it also offers investment advisory, housing finance, and asset management services. The group operates in the following segments: Large Corporate, SME, Commercial vehicle, and Housing Finance. The majority of its revenue is generated from the Commercial vehicle segment, which mainly consists of financing for used and new vehicles. Geographically, all of its operations are carried out within India.
70GF Score
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