Sonam (NSE:SONAMLTD) Gross Margin %: 15.03% (As of Mar. 2026) — 38% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

NSE:SONAMLTD Sonam Ltd NSE:SONAMLTD
78 GF Score
Price ₹55.14
GF Value ₹85.93
Valuation Possible Value Trap
! 3 Warning Signs
View Full Analysis

What is Sonam Gross Margin %?

Sonam NSE:SONAMLTD -1.76% 78 Gross Margin % is 15.03% as of Mar. 2026, which is 38% below its 10-year median of 24.28. GuruFocus rates NSE:SONAMLTD with a GF Score™ of 78/100 and a GF Value™ of ₹85.93 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 417 Furnishings, Fixtures & Appliances companies, Sonam ranks worse than 84.65% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Sonam's Gross Profit for the six months ended in Mar. 2026 was ₹257 Mil. Sonam's Revenue for the six months ended in Mar. 2026 was ₹1,708 Mil. Therefore, Sonam's Gross Margin % for the quarter that ended in Mar. 2026 was 15.03%.

Warning Sign:

Sonam Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.9%.


The historical rank and industry rank for Sonam's Gross Margin % or its related term are showing as below:

NSE:SONAMLTD' s Gross Margin % Range Over the Past 10 Years
Min: 15.03   Med: 24.28   Max: 32.01
Current: 15.03


During the past 13 years, the highest Gross Margin % of Sonam was 32.01%. The lowest was 15.03%. And the median was 24.28%.

NSE:SONAMLTD's Gross Margin % is ranked worse than
84.65% of 417 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 29.49 vs NSE:SONAMLTD: 15.03

Sonam had a gross margin of 15.03% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Sonam was -3.90% per year.


Sonam  (NSE:SONAMLTD) Gross Margin % Explanation

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

Sonam had a gross margin of 15.03% 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.


Sonam Gross Margin % Related Terms


Sonam Gross Margin % Historical Data

* Premium members only.

The historical data trend for Sonam'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.

Sonam Gross Margin % Chart

Sonam Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.11 22.40 25.43 23.12 15.03

Sonam Semi-Annual Data
Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 23.11 22.40 25.43 23.12 15.03

NSE:SONAMLTD vs SN, SGI, MHK: Gross Margin % Comparison

For the Furnishings, Fixtures & Appliances subindustry, Sonam'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.


Sonam Gross Margin % vs Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Sonam's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Sonam's Gross Margin % falls into.


NSE:SONAMLTD
78GF Score
Sonam Ltd NSE:SONAMLTD
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Sonam Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Sonam's Gross Margin for the fiscal year that ended in Mar. 2026 is calculated as

Gross Margin % (A: Mar. 2026 )=Gross Profit (A: Mar. 2026 ) / Revenue (A: Mar. 2026 )
=256.7 / 1707.638
=(Revenue - Cost of Goods Sold) / Revenue
=(1707.638 - 1450.922) / 1707.638
=15.03 %

Sonam's Gross Margin for the quarter that ended in Mar. 2026 is calculated as


Gross Margin % (Q: Mar. 2026 )=Gross Profit (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=256.7 / 1707.638
=(Revenue - Cost of Goods Sold) / Revenue
=(1707.638 - 1450.922) / 1707.638
=15.03 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 15.03% mean?
Sonam (NSE:SONAMLTD) has a Gross Margin % of 15.03% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sonam and its competitors. This is 38% below median its historical median of 24.28. Over the past decade, Sonam's Gross Margin % has ranged from 15.03 to 32.01. According to the industry distribution chart, Sonam ranks #353 out of 417 companies in the Furnishings, Fixtures & Appliances industry, placing it in the top 84.7%.
Is Sonam's Gross Margin % too high?
Sonam's current Gross Margin % of 15.03% is 38% below median its 10-year median of 24.28. Over the past 10 years, this metric has ranged from a low of 15.03 to a high of 32.01. The Furnishings, Fixtures & Appliances industry median Gross Margin % is 29.49. Sonam's value of 15.03% is 49% below this industry median. Based on the distribution chart, Sonam ranks #353 out of 417 companies in the Furnishings, Fixtures & Appliances industry, which is in the bottom quartile relative to peers. Overall, Sonam has a GF Score™ of 78/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sonam's Gross Margin % compare to SN and SGI?
According to the Furnishings, Fixtures & Appliances industry distribution chart, Sonam ranks #353 out of 417 companies for Gross Margin %. This places Sonam in the lower half of its industry. The industry median Gross Margin % is 29.49. Sonam's value of 15.03% is 49% below this benchmark. Historically, Sonam's own Gross Margin % has ranged from 15.03 to 32.01 over the past decade. While the company's 10-year median is 24.28 vs. the industry median of 29.49, Sonam 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 Furnishings, Fixtures & Appliances company?
The median Gross Margin % among Furnishings, Fixtures & Appliances companies is 29.49, based on 417 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. Sonam's current Gross Margin % of 15.03% is 49% 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 Sonam and its competitors. For the Furnishings, Fixtures & Appliances industry, the median Gross Margin % is 29.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sonam's current Gross Margin % is 15.03%, which is 38% below median its own 10-year median of 24.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sonam stock overvalued right now?
Based on GuruFocus' analysis, Sonam (NSE:SONAMLTD) is currently considered Possible Value Trap. The stock's GF Value™ is ₹85.93, compared to a current price of ₹55.14 — trading 35.8% below its estimated fair value. The current Gross Margin % is 15.03%, which is 38% below median its 10-year median of 24.28 and 49% below the Furnishings, Fixtures & Appliances industry median of 29.49. Sonam's overall GF Score™ is 78/100 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 Sonam (NSE:SONAMLTD), the current Gross Margin % is 15.03% 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 Sonam (NSE:SONAMLTD) Overvalued in 2026?

Based on GuruFocus' analysis, Sonam stock appears to be undervalued. The current stock price of ₹55.14 is trading 35.8% below its estimated GF Value™ of ₹85.93. GuruFocus considers Sonam to be Possible Value Trap.

Key valuation signals for NSE:SONAMLTD:

  • Gross Margin %: 15.03% (38% below median its 10-year median of 24.28)
  • GF Value™: ₹85.93 vs. price of ₹55.14 (35.8% below fair value)
  • GF Score™: 78/100 with 3 warning signs
  • Industry Position: 49% below the Furnishings, Fixtures & Appliances median (#353 of 417)

No single metric tells the full story. See the NSE:SONAMLTD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Sonam Business Description

Address Morbi Rajkot Highway, Survey No. 337/p, District Morbi, Village Lajai, Taluka Tankara, Rajkot, GJ, IND, 363 641
Sonam Ltd Formerly Sonam Clock Ltd operates in the clock manufacturing industry. The company is engaged in the Manufacturing and Sale of Horological items, Clocks, Clock Movements, and related items. Geographically, it operates only in India. Some of its products include alarm timepiece clocks, classy dial clocks, designer clocks, divine tune clocks, LCD clocks, LED digital clocks, light sensor clocks and others. The company's products are sold under the brand names of Sonam, ampm, and Lotus.
78GF Score

Get the complete analysis for NSE:SONAMLTD

Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹55.14
Price
₹85.93
GF Value