Supreme PetrochemNSE:SPLPETRO -1.58%77 Gross Margin % is 23.42% as of Mar. 2026, which is 52% above its 10-year median of 15.41. GuruFocus rates NSE:SPLPETRO with a GF Score™ of 77/100 and a GF Value™ of ₹662.72 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,565 Chemicals companies, Supreme Petrochem ranks worse than 66.71% 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
Supreme Petrochem had a gross margin of 23.42% 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.
Supreme Petrochem Gross Margin % Related Terms
Supreme Petrochem Gross Margin % Historical Data
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The historical data trend for Supreme Petrochem'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:SPLPETRO vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Supreme Petrochem'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.
Supreme Petrochem Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Supreme Petrochem's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Supreme Petrochem'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.
Supreme Petrochem (NSE:SPLPETRO) has a Gross Margin % of 23.42% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Supreme Petrochem and its competitors. This is 52% above median its historical median of 15.41. Over the past decade, Supreme Petrochem's Gross Margin % has ranged from 9.05 to 27.53. According to the industry distribution chart, Supreme Petrochem ranks #1044 out of 1565 companies in the Chemicals industry, placing it in the top 66.7%.
Is Supreme Petrochem's Gross Margin % too high?
Supreme Petrochem's current Gross Margin % of 23.42% is 52% above median its 10-year median of 15.41. Over the past 10 years, this metric has ranged from a low of 9.05 to a high of 27.53. The Chemicals industry median Gross Margin % is 23.38. Supreme Petrochem's value of 23.42% is 0.2% above this industry median. Based on the distribution chart, Supreme Petrochem ranks #1044 out of 1565 companies in the Chemicals industry, which is below the industry midpoint. Overall, Supreme Petrochem has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Supreme Petrochem's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Supreme Petrochem ranks #1044 out of 1565 companies for Gross Margin %. This places Supreme Petrochem in the lower half of its industry. The industry median Gross Margin % is 23.38. Supreme Petrochem's value of 23.42% is 0.2% above this benchmark. Historically, Supreme Petrochem's own Gross Margin % has ranged from 9.05 to 27.53 over the past decade. While the company's 10-year median is 15.41 vs. the industry median of 23.38, Supreme Petrochem 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.38, based on 1,565 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. Supreme Petrochem's current Gross Margin % of 23.42% is 0.2% 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 Supreme Petrochem and its competitors. For the Chemicals industry, the median Gross Margin % is 23.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Supreme Petrochem's current Gross Margin % is 23.42%, which is 52% above median its own 10-year median of 15.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Supreme Petrochem stock overvalued right now?
Based on GuruFocus' analysis, Supreme Petrochem (NSE:SPLPETRO) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹662.72, compared to a current price of ₹740.50 — trading 11.7% above its estimated fair value. The current Gross Margin % is 23.42%, which is 52% above median its 10-year median of 15.41 and 0.2% above the Chemicals industry median of 23.38. Supreme Petrochem's overall GF Score™ is 77/100 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 Supreme Petrochem (NSE:SPLPETRO), the current Gross Margin % is 23.42% 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 Supreme Petrochem (NSE:SPLPETRO) Overvalued in 2026?
Based on GuruFocus' analysis, Supreme Petrochem stock appears to be overvalued.
The current stock price of ₹740.50 is trading 11.7% above its estimated GF Value™ of ₹662.72.
GuruFocus considers Supreme Petrochem to be Modestly Overvalued.
Key valuation signals for NSE:SPLPETRO:
Gross Margin %: 23.42% (52% above median its 10-year median of 15.41)
GF Value™: ₹662.72 vs. price of ₹740.50 (11.7% above fair value)
Industry Position: 0.2% above the Chemicals median (#1044 of 1565)
No single metric tells the full story. See the NSE:SPLPETRO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Supreme Petrochem Ltd manufactures and trades in petrochemicals. The company owns production facilities at Raigad, Maharashtra, and in Chennai, Tamil Nadu. Its product portfolio consists of general-purpose polystyrene, specialty polystyrene, masterbatches, high-impact polystyrene, FR high-impact polystyrene, toughened polystyrene, and extruded polystyrene foam boards, among others. Supreme Petrochem has only one primary reporting segment, styrenics. Geographically, the majority of its revenue is generated from India, followed by other markets outside India.
77GF Score
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