Par Drugs and ChemicalsNSE:PAR +2.30%74 Gross Margin % is 54.57% as of Mar. 2026, which is 73% above its 10-year median of 31.49. GuruFocus rates NSE:PAR with a GF Score™ of 74/100 and a GF Value™ of ₹207.70 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 936 Drug Manufacturers companies, Par Drugs and Chemicals ranks better than 65.49% on this metric.
NSE:PAR's Gross Margin % is ranked better than 65.49% of 936
companies
in the Drug Manufacturers industry
Industry Median: 48.5
vs NSE:PAR: 58.17
Par Drugs and Chemicals had a gross margin of 54.57% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Par Drugs and Chemicals was 13.20% per year.
Par Drugs and Chemicals (NSE:PAR) 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
Par Drugs and Chemicals had a gross margin of 54.57% for the quarter that ended in Mar. 2026 => Durable 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.
Par Drugs and Chemicals Gross Margin % Related Terms
Par Drugs and Chemicals 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 Drug Manufacturers - Specialty & Generic subindustry, Par Drugs and Chemicals'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.
Par Drugs and Chemicals Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Par Drugs and Chemicals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Par Drugs and Chemicals'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.
Par Drugs and Chemicals (NSE:PAR) has a Gross Margin % of 54.57% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Par Drugs and Chemicals and its competitors. This is 73% above median its historical median of 31.49. Over the past decade, Par Drugs and Chemicals' Gross Margin % has ranged from 24.84 to 62.24. According to the industry distribution chart, Par Drugs and Chemicals ranks #323 out of 936 companies in the Drug Manufacturers industry, placing it in the top 34.5%.
Is Par Drugs and Chemicals' Gross Margin % too high?
Par Drugs and Chemicals' current Gross Margin % of 54.57% is 73% above median its 10-year median of 31.49. Over the past 10 years, this metric has ranged from a low of 24.84 to a high of 62.24. The Drug Manufacturers industry median Gross Margin % is 48.50. Par Drugs and Chemicals' value of 54.57% is 12.5% above this industry median. Based on the distribution chart, Par Drugs and Chemicals ranks #323 out of 936 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Par Drugs and Chemicals has a GF Score™ of 74/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Par Drugs and Chemicals' Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Par Drugs and Chemicals ranks #323 out of 936 companies for Gross Margin %. This puts Par Drugs and Chemicals in the upper half of its industry. The industry median Gross Margin % is 48.50. Par Drugs and Chemicals' value of 54.57% is 12.5% above this benchmark. Historically, Par Drugs and Chemicals' own Gross Margin % has ranged from 24.84 to 62.24 over the past decade. While the company's 10-year median is 31.49 vs. the industry median of 48.50, Par Drugs and Chemicals 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 Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.50, based on 936 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. Par Drugs and Chemicals's current Gross Margin % of 54.57% is 12.5% 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 Par Drugs and Chemicals and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Par Drugs and Chemicals's current Gross Margin % is 54.57%, which is 73% above median its own 10-year median of 31.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Par Drugs and Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Par Drugs and Chemicals (NSE:PAR) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹207.70, compared to a current price of ₹89.79 — trading 56.8% below its estimated fair value. The current Gross Margin % is 54.57%, which is 73% above median its 10-year median of 31.49 and 12.5% above the Drug Manufacturers industry median of 48.50. Par Drugs and Chemicals' overall GF Score™ is 74/100 with 2 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 Par Drugs and Chemicals (NSE:PAR), the current Gross Margin % is 54.57% 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 Par Drugs and Chemicals (NSE:PAR) Overvalued in 2026?
Based on GuruFocus' analysis, Par Drugs and Chemicals stock appears to be undervalued.
The current stock price of ₹89.79 is trading 56.8% below its estimated GF Value™ of ₹207.70.
GuruFocus considers Par Drugs and Chemicals to be Significantly Undervalued.
Key valuation signals for NSE:PAR:
Gross Margin %: 54.57% (73% above median its 10-year median of 31.49)
GF Value™: ₹207.70 vs. price of ₹89.79 (56.8% below fair value)
Industry Position: 12.5% above the Drug Manufacturers median (#323 of 936)
No single metric tells the full story. See the NSE:PAR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Par Drugs and Chemicals Ltd manufactures active Pharmaceutical Ingredients (APIs) and fine chemicals, serving domestic and international markets. Specializing in essential magnesium-based compounds and other specialty chemicals such as Magnesium Hydroxide, Magnesium Trisilicate, Magnesium Carbonate, various grades of Magnesium Oxide, Dried Aluminum Hydroxide Gel, and Sucralfate USP, the Company produces high-quality bulk drugs used in the formulation of finished pharmaceutical products like tablets, capsules, and liquids. Committed to maintaining stringent quality standards and utilizing manufacturing processes, the Company plays a vital role in supplying reliable ingredients that ensure the safety, efficacy, and stability of pharmaceutical formulations internationally.
74GF Score
Get the complete analysis for NSE:PAR
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:PAR has been successfully added to your 
