Innovative Tyres & TubesNSE:ITTL +1.96%42 Gross Margin % is 31.91% as of Sep. 2025, which is 54% above its 10-year median of 20.77. GuruFocus rates NSE:ITTL with a GF Score™ of 42/100 and a GF Value™ of ₹67.01 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,311 Vehicles & Parts companies, Innovative Tyres & Tubes ranks better than 69.49% on this metric.
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
Innovative Tyres & Tubes had a gross margin of 31.91% for the quarter that ended in Sep. 2025 => 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.
Innovative Tyres & Tubes Gross Margin % Related Terms
Innovative Tyres & Tubes 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.
For the Auto Parts subindustry, Innovative Tyres & Tubes'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.
Innovative Tyres & Tubes Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Innovative Tyres & Tubes's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Innovative Tyres & Tubes'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.
Innovative Tyres & Tubes (NSE:ITTL) has a Gross Margin % of 31.91% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Innovative Tyres & Tubes and its competitors. This is 54% above median its historical median of 20.77. According to the industry distribution chart, Innovative Tyres & Tubes ranks #400 out of 1311 companies in the Vehicles & Parts industry, placing it in the top 30.5%.
Is Innovative Tyres & Tubes' Gross Margin % too high?
Innovative Tyres & Tubes' current Gross Margin % of 31.91% is 54% above median its 10-year median of 20.77. The Vehicles & Parts industry median Gross Margin % is 19.84. Innovative Tyres & Tubes' value of 31.91% is 60.8% above this industry median. Based on the distribution chart, Innovative Tyres & Tubes ranks #400 out of 1311 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Innovative Tyres & Tubes has a GF Score™ of 42/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Innovative Tyres & Tubes' Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Innovative Tyres & Tubes ranks #400 out of 1311 companies for Gross Margin %. This puts Innovative Tyres & Tubes in the upper half of its industry. The industry median Gross Margin % is 19.84. Innovative Tyres & Tubes' value of 31.91% is 60.8% above this benchmark. While the company's 10-year median is 20.77 vs. the industry median of 19.84, Innovative Tyres & Tubes has consistently been above 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,311 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. Innovative Tyres & Tubes's current Gross Margin % of 31.91% is 60.8% above 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 Innovative Tyres & Tubes and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Innovative Tyres & Tubes's current Gross Margin % is 31.91%, which is 54% above median its own 10-year median of 20.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Innovative Tyres & Tubes stock overvalued right now?
Based on GuruFocus' analysis, Innovative Tyres & Tubes (NSE:ITTL) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹67.01, compared to a current price of ₹78.00 — trading 16.4% above its estimated fair value. The current Gross Margin % is 31.91%, which is 54% above median its 10-year median of 20.77 and 60.8% above the Vehicles & Parts industry median of 19.84. Innovative Tyres & Tubes' overall GF Score™ is 42/100 with 6 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 Innovative Tyres & Tubes (NSE:ITTL), the current Gross Margin % is 31.91% as of Sep. 2025. 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 Innovative Tyres & Tubes (NSE:ITTL) Overvalued in 2026?
Based on GuruFocus' analysis, Innovative Tyres & Tubes stock appears to be overvalued.
The current stock price of ₹78.00 is trading 16.4% above its estimated GF Value™ of ₹67.01.
GuruFocus considers Innovative Tyres & Tubes to be Modestly Overvalued.
Key valuation signals for NSE:ITTL:
Gross Margin %: 31.91% (54% above median its 10-year median of 20.77)
GF Value™: ₹67.01 vs. price of ₹78.00 (16.4% above fair value)
Industry Position: 60.8% above the Vehicles & Parts median (#400 of 1311)
No single metric tells the full story. See the NSE:ITTL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Innovative Tyres & Tubes Ltd is a manufacturer and exporter of Bias Tyres in India, generating the majority of its revenue domestically. The company offers a product portfolio across the Truck/Bus, Agricultural & OTR, and Motorcycle/3-wheeler segments from two nearby manufacturing units. Its product range includes tyres for light motorcycles up to heavy off-the-road mining vehicles. The company serves both domestic and export markets, supplying to over 40 countries and partnering with brands in India. Its product lineup includes mining tyres, agriculture tyres, motorcycle and scooter tyres, three-wheeler and passenger vehicle tyres, light-truck, truck and bus tyres, and special-purpose tyres.
42GF Score
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