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
Kalyani Commercials had a gross margin of 3.66% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
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.
Kalyani Commercials Gross Margin % Related Terms
Kalyani Commercials Gross Margin % Historical Data
* Premium members only.
The historical data trend for Kalyani Commercials's Gross Margin % can be seen below:
* 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:KALYANI vs CVNA, PAG, KMX: Gross Margin % Comparison
For the Auto & Truck Dealerships subindustry, Kalyani Commercials'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.
Kalyani Commercials Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Kalyani Commercials's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kalyani Commercials'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.
Kalyani Commercials (NSE:KALYANI) has a Gross Margin % of 3.66% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Kalyani Commercials and its competitors. This is 13% below median its historical median of 4.23. Over the past decade, Kalyani Commercials' Gross Margin % has ranged from 2.39 to 7.44.
Is Kalyani Commercials' Gross Margin % too high?
Kalyani Commercials' current Gross Margin % of 3.66% is 13% below median its 10-year median of 4.23. Over the past 10 years, this metric has ranged from a low of 2.39 to a high of 7.44. The Vehicles & Parts industry median Gross Margin % is 19.87. Kalyani Commercials' value of 3.66% is 81.6% below this industry median. Overall, Kalyani Commercials has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does Kalyani Commercials' Gross Margin % compare to CVNA and PAG?
Kalyani Commercials' Gross Margin % of 3.66% can be compared against companies in the Vehicles & Parts industry. The industry median Gross Margin % is 19.87. Kalyani Commercials' value of 3.66% is 81.6% below this benchmark. Historically, Kalyani Commercials' own Gross Margin % has ranged from 2.39 to 7.44 over the past decade. While the company's 10-year median is 4.23 vs. the industry median of 19.87, Kalyani Commercials 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.87, based on 1,307 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. Kalyani Commercials's current Gross Margin % of 3.66% is 81.6% 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 Kalyani Commercials and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kalyani Commercials's current Gross Margin % is 3.66%, which is 13% below median its own 10-year median of 4.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kalyani Commercials stock overvalued right now?
Kalyani Commercials (NSE:KALYANI) has a current Gross Margin % of 3.66%. The current Gross Margin % is 3.66%, which is 13% below median its 10-year median of 4.23 and 81.6% below the Vehicles & Parts industry median of 19.87. Kalyani Commercials' overall GF Score™ is 21/100 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 Kalyani Commercials (NSE:KALYANI), the current Gross Margin % is 3.66% 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.
Kalyani Commercials Ltd engages in commercial vehicle dealerships and services. The company is also involved in two-wheeled motor vehicles and servicing and retail outlets of petroleum products. The company operates in two segments. The Automobile segment engages in the trading of vehicles and servicing including Heavy Commercial vehicles and Three Wheelers and the other segment includes retail outlets of Petroleum Products.
21GF Score
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