South West Pinnacle Exploration (NSE:SOUTHWEST) 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
South West Pinnacle Exploration had a gross margin of 78.61% 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.
South West Pinnacle Exploration Gross Margin % Related Terms
South West Pinnacle Exploration Gross Margin % Historical Data
* 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.
South West Pinnacle Exploration Gross Margin % Chart
NSE:SOUTHWEST vs SLB, BKR, HAL: Gross Margin % Comparison
For the Oil & Gas Equipment & Services subindustry, South West Pinnacle Exploration'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.
South West Pinnacle Exploration Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, South West Pinnacle Exploration's Gross Margin % distribution charts can be found below:
* The bar in red indicates where South West Pinnacle Exploration'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.
South West Pinnacle Exploration (NSE:SOUTHWEST) has a Gross Margin % of 78.61% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on South West Pinnacle Exploration and its competitors. This is 18% above median its historical median of 66.70. Over the past decade, South West Pinnacle Exploration's Gross Margin % has ranged from 44.06 to 80.24. According to the industry distribution chart, South West Pinnacle Exploration ranks #38 out of 869 companies in the Oil & Gas industry, placing it in the top 4.4%.
Is South West Pinnacle Exploration's Gross Margin % too high?
South West Pinnacle Exploration's current Gross Margin % of 78.61% is 18% above median its 10-year median of 66.70. Over the past 10 years, this metric has ranged from a low of 44.06 to a high of 80.24. The Oil & Gas industry median Gross Margin % is 25.70. South West Pinnacle Exploration's value of 78.61% is 205.9% above this industry median. Based on the distribution chart, South West Pinnacle Exploration ranks #38 out of 869 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, South West Pinnacle Exploration has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does South West Pinnacle Exploration's Gross Margin % compare to SLB and BKR?
According to the Oil & Gas industry distribution chart, South West Pinnacle Exploration ranks #38 out of 869 companies for Gross Margin %. This places South West Pinnacle Exploration in the top 4% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 25.70. South West Pinnacle Exploration's value of 78.61% is 205.9% above this benchmark. Historically, South West Pinnacle Exploration's own Gross Margin % has ranged from 44.06 to 80.24 over the past decade. While the company's 10-year median is 66.70 vs. the industry median of 25.70, South West Pinnacle Exploration 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 Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 25.70, based on 869 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. South West Pinnacle Exploration's current Gross Margin % of 78.61% is 205.9% 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 South West Pinnacle Exploration and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. South West Pinnacle Exploration's current Gross Margin % is 78.61%, which is 18% above median its own 10-year median of 66.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is South West Pinnacle Exploration stock overvalued right now?
Based on GuruFocus' analysis, South West Pinnacle Exploration (NSE:SOUTHWEST) is currently considered Fairly Valued. The stock's GF Value™ is ₹208.50, compared to a current price of ₹218.39 — trading 4.7% above its estimated fair value. The current Gross Margin % is 78.61%, which is 18% above median its 10-year median of 66.70 and 205.9% above the Oil & Gas industry median of 25.70. South West Pinnacle Exploration's overall GF Score™ is 77/100 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 South West Pinnacle Exploration (NSE:SOUTHWEST), the current Gross Margin % is 78.61% 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 South West Pinnacle Exploration (NSE:SOUTHWEST) Overvalued in 2026?
Based on GuruFocus' analysis, South West Pinnacle Exploration stock appears to be overvalued.
The current stock price of ₹218.39 is trading 4.7% above its estimated GF Value™ of ₹208.50.
GuruFocus considers South West Pinnacle Exploration to be Fairly Valued.
Key valuation signals for NSE:SOUTHWEST:
Gross Margin %: 78.61% (18% above median its 10-year median of 66.70)
GF Value™: ₹208.50 vs. price of ₹218.39 (4.7% above fair value)
Industry Position: 205.9% above the Oil & Gas median (#38 of 869)
No single metric tells the full story. See the NSE:SOUTHWEST stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
South West Pinnacle Exploration Business Description
South West Pinnacle Exploration Ltd is an exploration services company in India, in the field of Mineral & Unconventional Energy resources. It provides services of Aquifer Mapping, CBM Exploration, CBM Production, Mining, and Others. The group operates in two reportable segments: Drilling & exploration and Coal mining and trading. It generates the majority of revenue from the Drilling & Exploration segment. It has a business presence in the domestic and overseas markets.
77GF Score
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