McNally Bharat Engineering Co (NSE:MBECL) 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
McNally Bharat Engineering Co had a gross margin of 34.22% 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.
McNally Bharat Engineering Co Gross Margin % Related Terms
McNally Bharat Engineering Co 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.
McNally Bharat Engineering Co Gross Margin % Chart
NSE:MBECL vs PWR, EME, J: Gross Margin % Comparison
For the Engineering & Construction subindustry, McNally Bharat Engineering Co'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.
McNally Bharat Engineering Co Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, McNally Bharat Engineering Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where McNally Bharat Engineering Co'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.
McNally Bharat Engineering Co (NSE:MBECL) has a Gross Margin % of 34.22% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on McNally Bharat Engineering Co and its competitors. This is 111% above median its historical median of 16.18.
Is McNally Bharat Engineering Co's Gross Margin % too high?
McNally Bharat Engineering Co's current Gross Margin % of 34.22% is 111% above median its 10-year median of 16.18. The Construction industry median Gross Margin % is 20.71. McNally Bharat Engineering Co's value of 34.22% is 65.2% above this industry median.
How does McNally Bharat Engineering Co's Gross Margin % compare to PWR and EME?
McNally Bharat Engineering Co's Gross Margin % of 34.22% can be compared against companies in the Construction industry. The industry median Gross Margin % is 20.71. McNally Bharat Engineering Co's value of 34.22% is 65.2% above this benchmark. While the company's 10-year median is 16.18 vs. the industry median of 20.71, McNally Bharat Engineering Co 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 Construction company?
The median Gross Margin % among Construction companies is 20.71, based on 1,719 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. McNally Bharat Engineering Co's current Gross Margin % of 34.22% is 65.2% 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 McNally Bharat Engineering Co and its competitors. For the Construction industry, the median Gross Margin % is 20.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McNally Bharat Engineering Co's current Gross Margin % is 34.22%, which is 111% above median its own 10-year median of 16.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McNally Bharat Engineering Co stock overvalued right now?
McNally Bharat Engineering Co (NSE:MBECL) has a current Gross Margin % of 34.22%. The stock's GF Value™ is ₹26.80, compared to a current price of ₹65.40 — trading 144% above its estimated fair value. The current Gross Margin % is 34.22%, which is 111% above median its 10-year median of 16.18 and 65.2% above the Construction industry median of 20.71. 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 McNally Bharat Engineering Co (NSE:MBECL), the current Gross Margin % is 34.22% 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.
McNally Bharat Engineering Co Business Description
McNally Bharat Engineering Co Ltd is an engineering company. The firm is engaged in providing turnkey solutions in the areas of power, steel, coal and mining, ports, aluminum, material handling, mineral processing, pyro-processing, pneumatic handling of powdered material, including fly ash handling and high concentrate disposal, coal washing, cement, water, oil and gas, civic and industrial water supply, and others. The Group is mainly engaged in a single business segment, viz, Engineering, Procurement, and Construction.
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