Transwarranty FinanceNSE:TFL +0.93%55 Gross Margin % is 7.93% as of Mar. 2026, which is 510% above its 10-year median of 1.30. GuruFocus rates NSE:TFL with a GF Score™ of 55/100 and a GF Value™ of ₹15.14 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 44 Banks companies, Transwarranty Finance ranks worse than 93.18% 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
Transwarranty Finance had a gross margin of 7.93% 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.
Transwarranty Finance Gross Margin % Related Terms
Transwarranty Finance Gross Margin % Historical Data
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The historical data trend for Transwarranty 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.
NSE:TFL vs RKT, FNMA, PFSI: Gross Margin % Comparison
For the Mortgage Finance subindustry, Transwarranty 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.
Transwarranty Finance Gross Margin % vs Banks Industry
For the Banks industry and Financial Services sector, Transwarranty Finance's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Transwarranty 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.
Transwarranty Finance (NSE:TFL) has a Gross Margin % of 7.93% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Transwarranty Finance and its competitors. This is 510% above median its historical median of 1.30. According to the industry distribution chart, Transwarranty Finance ranks #41 out of 44 companies in the Banks industry, placing it in the top 93.2%.
Is Transwarranty Finance's Gross Margin % too high?
Transwarranty Finance's current Gross Margin % of 7.93% is 510% above median its 10-year median of 1.30. The Banks industry median Gross Margin % is 41.02. Transwarranty Finance's value of 7.93% is 80.7% below this industry median. Based on the distribution chart, Transwarranty Finance ranks #41 out of 44 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Transwarranty Finance has a GF Score™ of 55/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Transwarranty Finance's Gross Margin % compare to RKT and FNMA?
According to the Banks industry distribution chart, Transwarranty Finance ranks #41 out of 44 companies for Gross Margin %. This places Transwarranty Finance in the lower half of its industry. The industry median Gross Margin % is 41.02. Transwarranty Finance's value of 7.93% is 80.7% below this benchmark. While the company's 10-year median is 1.30 vs. the industry median of 41.02, Transwarranty 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 Banks company?
The median Gross Margin % among Banks companies is 41.02, based on 44 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. Transwarranty Finance's current Gross Margin % of 7.93% is 80.7% 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 Transwarranty Finance and its competitors. For the Banks industry, the median Gross Margin % is 41.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Transwarranty Finance's current Gross Margin % is 7.93%, which is 510% above median its own 10-year median of 1.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Transwarranty Finance stock overvalued right now?
Based on GuruFocus' analysis, Transwarranty Finance (NSE:TFL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹15.14, compared to a current price of ₹11.99 — trading 20.8% below its estimated fair value. The current Gross Margin % is 7.93%, which is 510% above median its 10-year median of 1.30 and 80.7% below the Banks industry median of 41.02. Transwarranty Finance's overall GF Score™ is 55/100 with 4 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 Transwarranty Finance (NSE:TFL), the current Gross Margin % is 7.93% 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 Transwarranty Finance (NSE:TFL) Overvalued in 2026?
Based on GuruFocus' analysis, Transwarranty Finance stock appears to be undervalued.
The current stock price of ₹11.99 is trading 20.8% below its estimated GF Value™ of ₹15.14.
GuruFocus considers Transwarranty Finance to be Modestly Undervalued.
Key valuation signals for NSE:TFL:
Gross Margin %: 7.93% (510% above median its 10-year median of 1.30)
GF Value™: ₹15.14 vs. price of ₹11.99 (20.8% below fair value)
Industry Position: 80.7% below the Banks median (#41 of 44)
No single metric tells the full story. See the NSE:TFL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Transwarranty Finance Ltd is engaged in providing financial services. It is engaged in advisory services like investment banking, corporate finance, project finance, trade finance, and providing business and retail loans against collateral security of immovable property, liquid assets like shares, other financial assets, gold jewelry, and others. Geographically, the company operates only in the Indian market.
55GF Score
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