SBFC FinanceNSE:SBFC -0.18%63 Gross Margin % is 50.30% as of Mar. 2026, which is 43% above its 10-year median of 35.19. GuruFocus rates NSE:SBFC with a GF Score™ of 63/100 and a GF Value™ of ₹130.49 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 387 Credit Services companies, SBFC Finance ranks worse than 51.16% 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
SBFC Finance had a gross margin of 50.30% for the quarter that ended in Mar. 2026 => Durable 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.
SBFC Finance Gross Margin % Related Terms
SBFC Finance Gross Margin % Historical Data
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The historical data trend for SBFC Finance'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 Credit Services subindustry, SBFC Finance'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.
SBFC Finance Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, SBFC Finance's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SBFC Finance'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.
SBFC Finance (NSE:SBFC) has a Gross Margin % of 50.30% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on SBFC Finance and its competitors. This is 43% above median its historical median of 35.19. According to the industry distribution chart, SBFC Finance ranks #198 out of 387 companies in the Credit Services industry, placing it in the top 51.2%.
Is SBFC Finance's Gross Margin % too high?
SBFC Finance's current Gross Margin % of 50.30% is 43% above median its 10-year median of 35.19. The Credit Services industry median Gross Margin % is 51.88. SBFC Finance's value of 50.30% is 3% below this industry median. Based on the distribution chart, SBFC Finance ranks #198 out of 387 companies in the Credit Services industry, which is below the industry midpoint. Overall, SBFC Finance has a GF Score™ of 63/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does SBFC Finance's Gross Margin % compare to V and MA?
According to the Credit Services industry distribution chart, SBFC Finance ranks #198 out of 387 companies for Gross Margin %. This places SBFC Finance in the lower half of its industry. The industry median Gross Margin % is 51.88. SBFC Finance's value of 50.30% is 3% below this benchmark. While the company's 10-year median is 35.19 vs. the industry median of 51.88, SBFC Finance 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 Credit Services company?
The median Gross Margin % among Credit Services companies is 51.88, based on 387 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. SBFC Finance's current Gross Margin % of 50.30% is 3% 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 SBFC Finance and its competitors. For the Credit Services industry, the median Gross Margin % is 51.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SBFC Finance's current Gross Margin % is 50.30%, which is 43% above median its own 10-year median of 35.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SBFC Finance stock overvalued right now?
Based on GuruFocus' analysis, SBFC Finance (NSE:SBFC) is currently considered Possible Value Trap. The stock's GF Value™ is ₹130.49, compared to a current price of ₹90.77 — trading 30.4% below its estimated fair value. The current Gross Margin % is 50.30%, which is 43% above median its 10-year median of 35.19 and 3% below the Credit Services industry median of 51.88. SBFC Finance's overall GF Score™ is 63/100 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 SBFC Finance (NSE:SBFC), the current Gross Margin % is 50.30% 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 SBFC Finance (NSE:SBFC) Overvalued in 2026?
Based on GuruFocus' analysis, SBFC Finance stock appears to be undervalued.
The current stock price of ₹90.77 is trading 30.4% below its estimated GF Value™ of ₹130.49.
GuruFocus considers SBFC Finance to be Possible Value Trap.
Key valuation signals for NSE:SBFC:
Gross Margin %: 50.30% (43% above median its 10-year median of 35.19)
GF Value™: ₹130.49 vs. price of ₹90.77 (30.4% below fair value)
Industry Position: 3% below the Credit Services median (#198 of 387)
No single metric tells the full story. See the NSE:SBFC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SBFC Finance Ltd is a systemically important, non-deposit-taking non-banking finance company offering Secured MSME Loans and Loans against Gold, with a majority of its borrowers being entrepreneurs, small business owners, self-employed individuals, salaried and working-class individuals. It has developed a PhyGital model which uses technology and authentic in-person service to create loans that support the ambitions of its customers. The company engages directly with small business owners and works through loan applications together, in person, at the customer's pace. The company generates the majority of its revenue from Interest Income.
63GF Score
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