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
Khaitan Chemicals & Fertilizers had a gross margin of 32.11% 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.
Khaitan Chemicals & Fertilizers Gross Margin % Related Terms
Khaitan Chemicals & Fertilizers 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:KHAICHEM vs CTVA, CF, MOS: Gross Margin % Comparison
For the Agricultural Inputs subindustry, Khaitan Chemicals & Fertilizers'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.
Khaitan Chemicals & Fertilizers Gross Margin % vs Agriculture Industry
For the Agriculture industry and Basic Materials sector, Khaitan Chemicals & Fertilizers's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Khaitan Chemicals & Fertilizers'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.
Khaitan Chemicals & Fertilizers (NSE:KHAICHEM) has a Gross Margin % of 32.11% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Khaitan Chemicals & Fertilizers and its competitors. This is near median its historical median of 29.79. Over the past decade, Khaitan Chemicals & Fertilizers' Gross Margin % has ranged from 13.44 to 36.06. According to the industry distribution chart, Khaitan Chemicals & Fertilizers ranks #53 out of 245 companies in the Agriculture industry, placing it in the top 21.6%.
Is Khaitan Chemicals & Fertilizers' Gross Margin % too high?
Khaitan Chemicals & Fertilizers' current Gross Margin % of 32.11% is near median its 10-year median of 29.79. Over the past 10 years, this metric has ranged from a low of 13.44 to a high of 36.06. The Agriculture industry median Gross Margin % is 24.81. Khaitan Chemicals & Fertilizers' value of 32.11% is 29.4% above this industry median. Based on the distribution chart, Khaitan Chemicals & Fertilizers ranks #53 out of 245 companies in the Agriculture industry, which is in the top quartile — a strong position relative to peers. Overall, Khaitan Chemicals & Fertilizers has a GF Score™ of 73/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Khaitan Chemicals & Fertilizers' Gross Margin % compare to CTVA and CF?
According to the Agriculture industry distribution chart, Khaitan Chemicals & Fertilizers ranks #53 out of 245 companies for Gross Margin %. This places Khaitan Chemicals & Fertilizers in the top 22% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.81. Khaitan Chemicals & Fertilizers' value of 32.11% is 29.4% above this benchmark. Historically, Khaitan Chemicals & Fertilizers' own Gross Margin % has ranged from 13.44 to 36.06 over the past decade. While the company's 10-year median is 29.79 vs. the industry median of 24.81, Khaitan Chemicals & Fertilizers 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 an Agriculture company?
The median Gross Margin % among Agriculture companies is 24.81, based on 245 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. Khaitan Chemicals & Fertilizers's current Gross Margin % of 32.11% is 29.4% 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 Khaitan Chemicals & Fertilizers and its competitors. For the Agriculture industry, the median Gross Margin % is 24.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Khaitan Chemicals & Fertilizers's current Gross Margin % is 32.11%, which is near median its own 10-year median of 29.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Khaitan Chemicals & Fertilizers stock overvalued right now?
Based on GuruFocus' analysis, Khaitan Chemicals & Fertilizers (NSE:KHAICHEM) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹108.65, compared to a current price of ₹51.58 — trading 52.5% below its estimated fair value. The current Gross Margin % is 32.11%, which is near median its 10-year median of 29.79 and 29.4% above the Agriculture industry median of 24.81. Khaitan Chemicals & Fertilizers' overall GF Score™ is 73/100 with 3 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 Khaitan Chemicals & Fertilizers (NSE:KHAICHEM), the current Gross Margin % is 32.11% 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 Khaitan Chemicals & Fertilizers (NSE:KHAICHEM) Overvalued in 2026?
Based on GuruFocus' analysis, Khaitan Chemicals & Fertilizers stock appears to be undervalued.
The current stock price of ₹51.58 is trading 52.5% below its estimated GF Value™ of ₹108.65.
GuruFocus considers Khaitan Chemicals & Fertilizers to be Significantly Undervalued.
Key valuation signals for NSE:KHAICHEM:
Gross Margin %: 32.11% (near median its 10-year median of 29.79)
GF Value™: ₹108.65 vs. price of ₹51.58 (52.5% below fair value)
Industry Position: 29.4% above the Agriculture median (#53 of 245)
No single metric tells the full story. See the NSE:KHAICHEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Khaitan Chemicals & Fertilizers Business Description
Khaitan Chemicals & Fertilizers Ltd is a manufacturer of straight inorganic fertilizers. The company is mainly engaged in the manufacturing of Single Super Phosphate, Sulphuric Acid, and Soya Edible Oil. The segments of the group are Fertilizers and Chemicals, and Speciality Chemicals. The products of the company are sold under the brand names Khaitan and Utsav. The Fertilizer and Chemical division of the company is the main contributor to the company's turnover.
73GF Score
Get the complete analysis for NSE:KHAICHEM
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:KHAICHEM has been successfully added to your 
