PSP ProjectsNSE:PSPPROJECT -1.10%81 Gross Margin % is 12.76% as of Mar. 2026, which is 26% below its 10-year median of 17.31. GuruFocus rates NSE:PSPPROJECT with a GF Score™ of 81/100 and a GF Value™ of ₹913.41 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,719 Construction companies, PSP Projects ranks worse than 70.97% on this metric.
PSP Projects Ltd gross margin has been in long-term decline. The average rate of decline per year is -7%.
The historical rank and industry rank for PSP Projects's Gross Margin % or its related term are showing as below:
NSE:PSPPROJECT'
s Gross Margin % Range Over the Past 10 Years
Min: 12.39 Med: 17.31 Max: 22.08
Current: 13.22
During the past 13 years, the highestGross Margin % of PSP Projects was 22.08%. The lowest was 12.39%. And the median was 17.31%.
NSE:PSPPROJECT's Gross Margin % is ranked worse than 70.97% of 1719
companies
in the Construction industry
Industry Median: 20.71
vs NSE:PSPPROJECT: 13.22
PSP Projects had a gross margin of 12.76% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for PSP Projects was -7.00% per year.
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
PSP Projects had a gross margin of 12.76% for the quarter that ended in Mar. 2026 => 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.
PSP Projects Gross Margin % Related Terms
PSP Projects Gross Margin % Historical Data
* Premium members only.
The historical data trend for PSP Projects'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:PSPPROJECT vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, PSP Projects'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.
PSP Projects Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, PSP Projects's Gross Margin % distribution charts can be found below:
* The bar in red indicates where PSP Projects'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.
PSP Projects (NSE:PSPPROJECT) has a Gross Margin % of 12.76% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on PSP Projects and its competitors. This is 26% below median its historical median of 17.31. Over the past decade, PSP Projects' Gross Margin % has ranged from 12.39 to 22.08. According to the industry distribution chart, PSP Projects ranks #1220 out of 1719 companies in the Construction industry, placing it in the top 71%.
Is PSP Projects' Gross Margin % too high?
PSP Projects' current Gross Margin % of 12.76% is 26% below median its 10-year median of 17.31. Over the past 10 years, this metric has ranged from a low of 12.39 to a high of 22.08. The Construction industry median Gross Margin % is 20.71. PSP Projects' value of 12.76% is 38.4% below this industry median. Based on the distribution chart, PSP Projects ranks #1220 out of 1719 companies in the Construction industry, which is below the industry midpoint. Overall, PSP Projects has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does PSP Projects' Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, PSP Projects ranks #1220 out of 1719 companies for Gross Margin %. This places PSP Projects in the lower half of its industry. The industry median Gross Margin % is 20.71. PSP Projects' value of 12.76% is 38.4% below this benchmark. Historically, PSP Projects' own Gross Margin % has ranged from 12.39 to 22.08 over the past decade. While the company's 10-year median is 17.31 vs. the industry median of 20.71, PSP Projects has consistently been below 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. PSP Projects's current Gross Margin % of 12.76% is 38.4% below 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 PSP Projects 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. PSP Projects's current Gross Margin % is 12.76%, which is 26% below median its own 10-year median of 17.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PSP Projects stock overvalued right now?
Based on GuruFocus' analysis, PSP Projects (NSE:PSPPROJECT) is currently considered Fairly Valued. The stock's GF Value™ is ₹913.41, compared to a current price of ₹988.30 — trading 8.2% above its estimated fair value. The current Gross Margin % is 12.76%, which is 26% below median its 10-year median of 17.31 and 38.4% below the Construction industry median of 20.71. PSP Projects' overall GF Score™ is 81/100 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 PSP Projects (NSE:PSPPROJECT), the current Gross Margin % is 12.76% 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 PSP Projects (NSE:PSPPROJECT) Overvalued in 2026?
Based on GuruFocus' analysis, PSP Projects stock appears to be overvalued.
The current stock price of ₹988.30 is trading 8.2% above its estimated GF Value™ of ₹913.41.
GuruFocus considers PSP Projects to be Fairly Valued.
Key valuation signals for NSE:PSPPROJECT:
Gross Margin %: 12.76% (26% below median its 10-year median of 17.31)
GF Value™: ₹913.41 vs. price of ₹988.30 (8.2% above fair value)
Industry Position: 38.4% below the Construction median (#1220 of 1719)
No single metric tells the full story. See the NSE:PSPPROJECT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PSP Projects Ltd is a multidisciplinary construction company offering a diversified range of construction and allied services across industrial, institutional, government, government residential, and residential projects in India. The company operates in a single segment, namely construction project activities. The company provides services across the construction value chain, ranging from planning and design to construction and post-construction activities. Geographically, it derives revenue from India.
81GF 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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