SML MahindraNSE:SMLMAH -1.65%75 Gross Margin % is 21.53% as of Mar. 2026, which is 4% below its 10-year median of 22.47. GuruFocus rates NSE:SMLMAH with a GF Score™ of 75/100 and a GF Value™ of ₹2,407.48 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,308 Vehicles & Parts companies, SML Mahindra ranks better than 61.7% 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
SML Mahindra had a gross margin of 21.53% 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.
SML Mahindra Gross Margin % Related Terms
SML Mahindra Gross Margin % Historical Data
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The historical data trend for SML Mahindra'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:SMLMAH vs TSLA, GM, F: Gross Margin % Comparison
For the Auto Manufacturers subindustry, SML Mahindra'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.
SML Mahindra Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, SML Mahindra's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SML Mahindra'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.
SML Mahindra (NSE:SMLMAH) has a Gross Margin % of 21.53% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on SML Mahindra and its competitors. This is near median its historical median of 22.47. Over the past decade, SML Mahindra's Gross Margin % has ranged from 16.74 to 25.55. According to the industry distribution chart, SML Mahindra ranks #501 out of 1308 companies in the Vehicles & Parts industry, placing it in the top 38.3%.
Is SML Mahindra's Gross Margin % too high?
SML Mahindra's current Gross Margin % of 21.53% is near median its 10-year median of 22.47. Over the past 10 years, this metric has ranged from a low of 16.74 to a high of 25.55. The Vehicles & Parts industry median Gross Margin % is 19.80. SML Mahindra's value of 21.53% is 8.7% above this industry median. Based on the distribution chart, SML Mahindra ranks #501 out of 1308 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, SML Mahindra has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SML Mahindra's Gross Margin % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, SML Mahindra ranks #501 out of 1308 companies for Gross Margin %. This puts SML Mahindra in the upper half of its industry. The industry median Gross Margin % is 19.80. SML Mahindra's value of 21.53% is 8.7% above this benchmark. Historically, SML Mahindra's own Gross Margin % has ranged from 16.74 to 25.55 over the past decade. While the company's 10-year median is 22.47 vs. the industry median of 19.80, SML Mahindra 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.80, based on 1,308 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. SML Mahindra's current Gross Margin % of 21.53% is 8.7% 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 SML Mahindra and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SML Mahindra's current Gross Margin % is 21.53%, which is near median its own 10-year median of 22.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SML Mahindra stock overvalued right now?
Based on GuruFocus' analysis, SML Mahindra (NSE:SMLMAH) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹2,407.48, compared to a current price of ₹3,892.30 — trading 61.7% above its estimated fair value. The current Gross Margin % is 21.53%, which is near median its 10-year median of 22.47 and 8.7% above the Vehicles & Parts industry median of 19.80. SML Mahindra's overall GF Score™ is 75/100 with 1 warning sign 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 SML Mahindra (NSE:SMLMAH), the current Gross Margin % is 21.53% 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 SML Mahindra (NSE:SMLMAH) Overvalued in 2026?
Based on GuruFocus' analysis, SML Mahindra stock appears to be overvalued.
The current stock price of ₹3,892.30 is trading 61.7% above its estimated GF Value™ of ₹2,407.48.
GuruFocus considers SML Mahindra to be Significantly Overvalued.
Key valuation signals for NSE:SMLMAH:
Gross Margin %: 21.53% (near median its 10-year median of 22.47)
GF Value™: ₹2,407.48 vs. price of ₹3,892.30 (61.7% above fair value)
Industry Position: 8.7% above the Vehicles & Parts median (#501 of 1308)
No single metric tells the full story. See the NSE:SMLMAH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SML Mahindra Ltd, formerly SML Isuzu Ltd is engaged in the business of manufacturing and selling of commercial vehicles including light and medium-duty trucks, buses, ambulances, and specialized vehicles. The company integrates Japanese technology with local manufacturing to offer reliable and cost-effective transportation solutions. Its product portfolio spans cargo trucks and passenger buses with variants that support different industries such as education, tourism, and corporate transport. Revenue is majorly generated through the sale of vehicles and after-sales services including telematics support. The company operates predominantly in India and exports to several countries across Africa and Asia.
75GF Score
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