Newmalayalam Steel (NSE:NMSTEEL) Gross Margin %: 16.23% (As of Mar. 2025)

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NSE:NMSTEEL Newmalayalam Steel Ltd NSE:NMSTEEL
13 GF Score
Price ₹24.75
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What is Newmalayalam Steel Gross Margin %?

Newmalayalam Steel NSE:NMSTEEL +0.61% 13 Gross Margin % is 16.23% as of Mar. 2025. GuruFocus rates NSE:NMSTEEL with a GF Score™ of 13/100.

Gross Margin % is calculated as gross profit divided by its revenue. Newmalayalam Steel's Gross Profit for the six months ended in Mar. 2025 was ₹243 Mil. Newmalayalam Steel's Revenue for the six months ended in Mar. 2025 was ₹1,500 Mil. Therefore, Newmalayalam Steel's Gross Margin % for the quarter that ended in Mar. 2025 was 16.23%.


The historical rank and industry rank for Newmalayalam Steel's Gross Margin % or its related term are showing as below:


NSE:NMSTEEL's Gross Margin % is not ranked *
in the Steel industry.
Industry Median: 12.6
* Ranked among companies with meaningful Gross Margin % only.

Newmalayalam Steel had a gross margin of 16.23% for the quarter that ended in Mar. 2025 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Newmalayalam Steel was 0.00% per year.


Newmalayalam Steel  (NSE:NMSTEEL) 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

Newmalayalam Steel had a gross margin of 16.23% for the quarter that ended in Mar. 2025 => 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.


Newmalayalam Steel Gross Margin % Related Terms


Newmalayalam Steel Gross Margin % Historical Data

* Premium members only.

The historical data trend for Newmalayalam Steel'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.

Newmalayalam Steel Gross Margin % Chart

Newmalayalam Steel Annual Data
Trend Mar22 Mar23 Mar24 Mar25
Gross Margin %
-1.34 2.65 4.42 3.87

Newmalayalam Steel Semi-Annual Data
Mar22 Mar23 Mar24 Sep24 Mar25
Gross Margin % 0.00 0.00 0.00 -8.14 16.23

NSE:NMSTEEL vs NUE, STLD, RS: Gross Margin % Comparison

For the Steel subindustry, Newmalayalam Steel'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.


Newmalayalam Steel Gross Margin % vs Steel Industry

For the Steel industry and Basic Materials sector, Newmalayalam Steel's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Newmalayalam Steel's Gross Margin % falls into.


NSE:NMSTEEL
13GF Score
Newmalayalam Steel Ltd NSE:NMSTEEL
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Newmalayalam Steel Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Newmalayalam Steel's Gross Margin for the fiscal year that ended in Mar. 2025 is calculated as

Gross Margin % (A: Mar. 2025 )=Gross Profit (A: Mar. 2025 ) / Revenue (A: Mar. 2025 )
=117.8 / 3041.643
=(Revenue - Cost of Goods Sold) / Revenue
=(3041.643 - 2923.843) / 3041.643
=3.87 %

Newmalayalam Steel's Gross Margin for the quarter that ended in Mar. 2025 is calculated as


Gross Margin % (Q: Mar. 2025 )=Gross Profit (Q: Mar. 2025 ) / Revenue (Q: Mar. 2025 )
=243.4 / 1499.502
=(Revenue - Cost of Goods Sold) / Revenue
=(1499.502 - 1256.108) / 1499.502
=16.23 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 16.23% mean?
Newmalayalam Steel (NSE:NMSTEEL) has a Gross Margin % of 16.23% as of Mar. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Newmalayalam Steel and its competitors.
Is Newmalayalam Steel's Gross Margin % too high?
Newmalayalam Steel's current Gross Margin % is 16.23%. The Steel industry median Gross Margin % is 12.60. Newmalayalam Steel's value of 16.23% is 28.8% above this industry median. Overall, Newmalayalam Steel has a GF Score™ of 13/100, reflecting its overall financial health beyond just this single metric.
How does Newmalayalam Steel's Gross Margin % compare to NUE and STLD?
Newmalayalam Steel's Gross Margin % of 16.23% can be compared against companies in the Steel industry. The industry median Gross Margin % is 12.60. Newmalayalam Steel's value of 16.23% is 28.8% above this benchmark. 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 Steel company?
The median Gross Margin % among Steel companies is 12.60, based on 595 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. Newmalayalam Steel's current Gross Margin % of 16.23% is 28.8% 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 Newmalayalam Steel and its competitors. For the Steel industry, the median Gross Margin % is 12.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Newmalayalam Steel's current Gross Margin % is 16.23%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Newmalayalam Steel stock overvalued right now?
Newmalayalam Steel (NSE:NMSTEEL) has a current Gross Margin % of 16.23%. The current Gross Margin % is 16.23% and 28.8% above the Steel industry median of 12.60. Newmalayalam Steel's overall GF Score™ is 13/100. 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 Newmalayalam Steel (NSE:NMSTEEL), the current Gross Margin % is 16.23% as of Mar. 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.

Newmalayalam Steel Business Description

Address Pallipuram P O, Mala, Door No. 2/546/A & 2/546/B, Mala, Thrissur, KL, IND, 680 732
Newmalayalam Steel Ltd is engaged in the manufacturing of galvanized pipes, tubes, and sheets. The Galvanized pipes and tubes are used for building roofs to reduce heat and avoid leakage, further, the galvanization process offers an added advantage of increasing the life of the product and enhancing its quality by making it rust-free. Its products are therefore manufactured to provide an effective solution to the continuous damage caused to houses in Kerala on account of inclement weather conditions.
13GF Score

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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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