Primo ChemicalsNSE:PRIMO -1.39%56 Gross Margin % is 37.66% as of Mar. 2026, which is 15% above its 10-year median of 32.87. GuruFocus rates NSE:PRIMO with a GF Score™ of 56/100 and a GF Value™ of ₹46.19 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 1,555 Chemicals companies, Primo Chemicals ranks better than 77.49% on this metric.
The historical rank and industry rank for Primo Chemicals's Gross Margin % or its related term are showing as below:
NSE:PRIMO'
s Gross Margin % Range Over the Past 10 Years
Min: 13.18 Med: 32.87 Max: 49.27
Current: 36.38
During the past 13 years, the highestGross Margin % of Primo Chemicals was 49.27%. The lowest was 13.18%. And the median was 32.87%.
NSE:PRIMO's Gross Margin % is ranked better than 77.49% of 1555
companies
in the Chemicals industry
Industry Median: 23.44
vs NSE:PRIMO: 36.38
Primo Chemicals had a gross margin of 37.66% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Primo Chemicals was 2.80% per year.
Primo Chemicals (NSE:PRIMO) 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
Primo Chemicals had a gross margin of 37.66% 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.
Primo Chemicals Gross Margin % Related Terms
Primo Chemicals Gross Margin % Historical Data
* Premium members only.
The historical data trend for Primo Chemicals'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.
For the Chemicals subindustry, Primo 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.
Primo Chemicals Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Primo Chemicals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Primo 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.
Primo Chemicals (NSE:PRIMO) has a Gross Margin % of 37.66% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Primo Chemicals and its competitors. This is 15% above median its historical median of 32.87. Over the past decade, Primo Chemicals' Gross Margin % has ranged from 13.18 to 49.27. According to the industry distribution chart, Primo Chemicals ranks #350 out of 1555 companies in the Chemicals industry, placing it in the top 22.5%.
Is Primo Chemicals' Gross Margin % too high?
Primo Chemicals' current Gross Margin % of 37.66% is 15% above median its 10-year median of 32.87. Over the past 10 years, this metric has ranged from a low of 13.18 to a high of 49.27. The Chemicals industry median Gross Margin % is 23.44. Primo Chemicals' value of 37.66% is 60.7% above this industry median. Based on the distribution chart, Primo Chemicals ranks #350 out of 1555 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Primo Chemicals has a GF Score™ of 56/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Primo Chemicals' Gross Margin % compare to DOW?
According to the Chemicals industry distribution chart, Primo Chemicals ranks #350 out of 1555 companies for Gross Margin %. This places Primo Chemicals in the top 23% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 23.44. Primo Chemicals' value of 37.66% is 60.7% above this benchmark. Historically, Primo Chemicals' own Gross Margin % has ranged from 13.18 to 49.27 over the past decade. While the company's 10-year median is 32.87 vs. the industry median of 23.44, Primo 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.44, based on 1,555 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. Primo Chemicals's current Gross Margin % of 37.66% is 60.7% 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 Primo Chemicals and its competitors. For the Chemicals industry, the median Gross Margin % is 23.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Primo Chemicals's current Gross Margin % is 37.66%, which is 15% above median its own 10-year median of 32.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Primo Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Primo Chemicals (NSE:PRIMO) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹46.19, compared to a current price of ₹24.11 — trading 47.8% below its estimated fair value. The current Gross Margin % is 37.66%, which is 15% above median its 10-year median of 32.87 and 60.7% above the Chemicals industry median of 23.44. Primo Chemicals' overall GF Score™ is 56/100 with 5 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 Primo Chemicals (NSE:PRIMO), the current Gross Margin % is 37.66% 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 Primo Chemicals (NSE:PRIMO) Overvalued in 2026?
Based on GuruFocus' analysis, Primo Chemicals stock appears to be undervalued.
The current stock price of ₹24.11 is trading 47.8% below its estimated GF Value™ of ₹46.19.
GuruFocus considers Primo Chemicals to be Significantly Undervalued.
Key valuation signals for NSE:PRIMO:
Gross Margin %: 37.66% (15% above median its 10-year median of 32.87)
GF Value™: ₹46.19 vs. price of ₹24.11 (47.8% below fair value)
Industry Position: 60.7% above the Chemicals median (#350 of 1555)
No single metric tells the full story. See the NSE:PRIMO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Primo Chemicals Ltd is engaged in the manufacturing of chemicals. Its product portfolio includes Caustic Soda Lye and its by-products are Hydrochloric Acid, Liquid Chlorine, Sodium Hypochlorite, and Hydrogen gas. The company generates revenue from the sale of goods and trading sales.
56GF Score
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