Rail Vikas NigamNSE:RVNL +2.85%72 Gross Margin % is 5.63% as of Mar. 2026, which is 26% below its 10-year median of 7.59. GuruFocus rates NSE:RVNL with a GF Score™ of 72/100 and a GF Value™ of ₹350.04 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,721 Construction companies, Rail Vikas Nigam ranks worse than 89.66% 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
Rail Vikas Nigam had a gross margin of 5.63% 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.
Rail Vikas Nigam Gross Margin % Related Terms
Rail Vikas Nigam Gross Margin % Historical Data
* Premium members only.
The historical data trend for Rail Vikas Nigam'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:RVNL vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Rail Vikas Nigam'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.
Rail Vikas Nigam Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Rail Vikas Nigam's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Rail Vikas Nigam'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.
Rail Vikas Nigam (NSE:RVNL) has a Gross Margin % of 5.63% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Rail Vikas Nigam and its competitors. This is 26% below median its historical median of 7.59. Over the past decade, Rail Vikas Nigam's Gross Margin % has ranged from 6.00 to 7.81. According to the industry distribution chart, Rail Vikas Nigam ranks #1543 out of 1721 companies in the Construction industry, placing it in the top 89.7%.
Is Rail Vikas Nigam's Gross Margin % too high?
Rail Vikas Nigam's current Gross Margin % of 5.63% is 26% below median its 10-year median of 7.59. Over the past 10 years, this metric has ranged from a low of 6.00 to a high of 7.81. The Construction industry median Gross Margin % is 20.73. Rail Vikas Nigam's value of 5.63% is 72.8% below this industry median. Based on the distribution chart, Rail Vikas Nigam ranks #1543 out of 1721 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Rail Vikas Nigam has a GF Score™ of 72/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Rail Vikas Nigam's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Rail Vikas Nigam ranks #1543 out of 1721 companies for Gross Margin %. This places Rail Vikas Nigam in the lower half of its industry. The industry median Gross Margin % is 20.73. Rail Vikas Nigam's value of 5.63% is 72.8% below this benchmark. Historically, Rail Vikas Nigam's own Gross Margin % has ranged from 6.00 to 7.81 over the past decade. While the company's 10-year median is 7.59 vs. the industry median of 20.73, Rail Vikas Nigam 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 20.73, based on 1,721 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. Rail Vikas Nigam's current Gross Margin % of 5.63% is 72.8% 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 Rail Vikas Nigam and its competitors. For the Construction industry, the median Gross Margin % is 20.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rail Vikas Nigam's current Gross Margin % is 5.63%, which is 26% below median its own 10-year median of 7.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rail Vikas Nigam stock overvalued right now?
Based on GuruFocus' analysis, Rail Vikas Nigam (NSE:RVNL) is currently considered Possible Value Trap. The stock's GF Value™ is ₹350.04, compared to a current price of ₹232.67 — trading 33.5% below its estimated fair value. The current Gross Margin % is 5.63%, which is 26% below median its 10-year median of 7.59 and 72.8% below the Construction industry median of 20.73. Rail Vikas Nigam's overall GF Score™ is 72/100 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 Rail Vikas Nigam (NSE:RVNL), the current Gross Margin % is 5.63% 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 Rail Vikas Nigam (NSE:RVNL) Overvalued in 2026?
Based on GuruFocus' analysis, Rail Vikas Nigam stock appears to be undervalued.
The current stock price of ₹232.67 is trading 33.5% below its estimated GF Value™ of ₹350.04.
GuruFocus considers Rail Vikas Nigam to be Possible Value Trap.
Key valuation signals for NSE:RVNL:
Gross Margin %: 5.63% (26% below median its 10-year median of 7.59)
GF Value™: ₹350.04 vs. price of ₹232.67 (33.5% below fair value)
Industry Position: 72.8% below the Construction median (#1543 of 1721)
No single metric tells the full story. See the NSE:RVNL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rail Vikas Nigam Ltd is an Indian-based company, engaged in the business of implementing various types of Rail infrastructure projects. It executes projects such as new lines, doubling, gauge conversion, railway electrification, metro projects, workshops, bridges, construction of cable-stayed bridges, institution buildings, and others. The company has only one reportable segment namely, Development of Railway Infrastructure.
72GF Score
Get the complete analysis for NSE:RVNL
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:RVNL has been successfully added to your 
