Prakash IndustriesNSE:PRAKASH -2.26%79 Gross Margin % is 39.75% as of Mar. 2026, which is 40% above its 10-year median of 28.39. GuruFocus rates NSE:PRAKASH with a GF Score™ of 79/100 and a GF Value™ of ₹145.19 (Fairly Valued). The stock has 6 warning signs investors should review. Among 594 Steel companies, Prakash Industries ranks better than 90.4% on this metric.
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
Prakash Industries had a gross margin of 39.75% 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.
Prakash Industries Gross Margin % Related Terms
Prakash Industries Gross Margin % Historical Data
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The historical data trend for Prakash Industries'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:PRAKASH vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, Prakash Industries'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.
Prakash Industries Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Prakash Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Prakash Industries'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.
Prakash Industries (NSE:PRAKASH) has a Gross Margin % of 39.75% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Prakash Industries and its competitors. This is 40% above median its historical median of 28.39. Over the past decade, Prakash Industries' Gross Margin % has ranged from 21.92 to 39.22. According to the industry distribution chart, Prakash Industries ranks #57 out of 594 companies in the Steel industry, placing it in the top 9.6%.
Is Prakash Industries' Gross Margin % too high?
Prakash Industries' current Gross Margin % of 39.75% is 40% above median its 10-year median of 28.39. Over the past 10 years, this metric has ranged from a low of 21.92 to a high of 39.22. The Steel industry median Gross Margin % is 12.61. Prakash Industries' value of 39.75% is 215.2% above this industry median. Based on the distribution chart, Prakash Industries ranks #57 out of 594 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Prakash Industries has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Prakash Industries' Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Prakash Industries ranks #57 out of 594 companies for Gross Margin %. This places Prakash Industries in the top 10% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 12.61. Prakash Industries' value of 39.75% is 215.2% above this benchmark. Historically, Prakash Industries' own Gross Margin % has ranged from 21.92 to 39.22 over the past decade. While the company's 10-year median is 28.39 vs. the industry median of 12.61, Prakash Industries 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 Steel company?
The median Gross Margin % among Steel companies is 12.61, based on 594 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. Prakash Industries's current Gross Margin % of 39.75% is 215.2% 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 Prakash Industries and its competitors. For the Steel industry, the median Gross Margin % is 12.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Prakash Industries's current Gross Margin % is 39.75%, which is 40% above median its own 10-year median of 28.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prakash Industries stock overvalued right now?
Based on GuruFocus' analysis, Prakash Industries (NSE:PRAKASH) is currently considered Fairly Valued. The stock's GF Value™ is ₹145.19, compared to a current price of ₹139.74 — trading 3.8% below its estimated fair value. The current Gross Margin % is 39.75%, which is 40% above median its 10-year median of 28.39 and 215.2% above the Steel industry median of 12.61. Prakash Industries' overall GF Score™ is 79/100 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 Prakash Industries (NSE:PRAKASH), the current Gross Margin % is 39.75% 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 Prakash Industries (NSE:PRAKASH) Overvalued in 2026?
Based on GuruFocus' analysis, Prakash Industries stock appears to be undervalued.
The current stock price of ₹139.74 is trading 3.8% below its estimated GF Value™ of ₹145.19.
GuruFocus considers Prakash Industries to be Fairly Valued.
Key valuation signals for NSE:PRAKASH:
Gross Margin %: 39.75% (40% above median its 10-year median of 28.39)
GF Value™: ₹145.19 vs. price of ₹139.74 (3.8% below fair value)
Industry Position: 215.2% above the Steel median (#57 of 594)
No single metric tells the full story. See the NSE:PRAKASH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Prakash Industries Ltd is an integrated steel and power company, specializing in the manufacturing and sale of high-quality iron and steel products such as sponge iron, wire rods, TMT bars, and ferroalloys. The company operates an integrated steel plant in Chhattisgarh, utilizing cutting-edge coal-based sponge iron production techniques. Additionally, the company has forward integration with facilities producing value-added steel products and operates a captive power generation plant, making it self-reliant in energy needs. Focused on innovation, cost efficiency, and sustainable growth, the company delivers competitive products while expanding its footprint across India's steel and power sectors.
79GF Score
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