Rama PhosphatesNSE:RAMAPHO -3.83%83 Gross Margin % is 27.87% as of Mar. 2026, which is 249% above its 10-year median of 7.98. GuruFocus rates NSE:RAMAPHO with a GF Score™ of 83/100 and a GF Value™ of ₹194.95 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 248 Agriculture companies, Rama Phosphates ranks better than 70.97% 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
Rama Phosphates had a gross margin of 27.87% 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.
Rama Phosphates Gross Margin % Related Terms
Rama Phosphates Gross Margin % Historical Data
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The historical data trend for Rama Phosphates'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:RAMAPHO vs CTVA, CF: Gross Margin % Comparison
For the Agricultural Inputs subindustry, Rama Phosphates'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.
Rama Phosphates Gross Margin % vs Agriculture Industry
For the Agriculture industry and Basic Materials sector, Rama Phosphates's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Rama Phosphates'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.
Rama Phosphates (NSE:RAMAPHO) has a Gross Margin % of 27.87% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Rama Phosphates and its competitors. This is 249% above median its historical median of 7.98. According to the industry distribution chart, Rama Phosphates ranks #72 out of 248 companies in the Agriculture industry, placing it in the top 29%.
Is Rama Phosphates' Gross Margin % too high?
Rama Phosphates' current Gross Margin % of 27.87% is 249% above median its 10-year median of 7.98. The Agriculture industry median Gross Margin % is 24.78. Rama Phosphates' value of 27.87% is 12.5% above this industry median. Based on the distribution chart, Rama Phosphates ranks #72 out of 248 companies in the Agriculture industry, which is above the industry midpoint. Overall, Rama Phosphates has a GF Score™ of 83/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Rama Phosphates' Gross Margin % compare to CTVA and CF?
According to the Agriculture industry distribution chart, Rama Phosphates ranks #72 out of 248 companies for Gross Margin %. This puts Rama Phosphates in the upper half of its industry. The industry median Gross Margin % is 24.78. Rama Phosphates' value of 27.87% is 12.5% above this benchmark. While the company's 10-year median is 7.98 vs. the industry median of 24.78, Rama Phosphates 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 an Agriculture company?
The median Gross Margin % among Agriculture companies is 24.78, based on 248 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. Rama Phosphates's current Gross Margin % of 27.87% 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 Rama Phosphates and its competitors. For the Agriculture industry, the median Gross Margin % is 24.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rama Phosphates's current Gross Margin % is 27.87%, which is 249% above median its own 10-year median of 7.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rama Phosphates stock overvalued right now?
Based on GuruFocus' analysis, Rama Phosphates (NSE:RAMAPHO) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹194.95, compared to a current price of ₹129.72 — trading 33.5% below its estimated fair value. The current Gross Margin % is 27.87%, which is 249% above median its 10-year median of 7.98 and 12.5% above the Agriculture industry median of 24.78. Rama Phosphates' overall GF Score™ is 83/100 with 3 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 Rama Phosphates (NSE:RAMAPHO), the current Gross Margin % is 27.87% 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 Rama Phosphates (NSE:RAMAPHO) Overvalued in 2026?
Based on GuruFocus' analysis, Rama Phosphates stock appears to be undervalued.
The current stock price of ₹129.72 is trading 33.5% below its estimated GF Value™ of ₹194.95.
GuruFocus considers Rama Phosphates to be Significantly Undervalued.
Key valuation signals for NSE:RAMAPHO:
Gross Margin %: 27.87% (249% above median its 10-year median of 7.98)
GF Value™: ₹194.95 vs. price of ₹129.72 (33.5% below fair value)
Industry Position: 12.5% above the Agriculture median (#72 of 248)
No single metric tells the full story. See the NSE:RAMAPHO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rama Phosphates Ltd is an Indian fertilizer manufacturing company. It is engaged in manufacturing phosphatic fertilizers such as Single Super Phosphate (Powder as well as Granule), Mixed fertilizers namely NPK of various grades, Fortified fertilizers namely Boronated Single Super Phosphate (Powder and Granule), and Micronutrients namely Magnesium Sulphate among other products. The company's operating segments include Fertilizers, Micro Nutrients & Chemicals and Oil.
83GF Score
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