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
Trucap Finance had a gross margin of -80.18% 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.
Trucap Finance Gross Margin % Related Terms
Trucap Finance Gross Margin % Historical Data
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The historical data trend for Trucap 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.
For the Credit Services subindustry, Trucap 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.
Trucap Finance Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Trucap Finance's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Trucap 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.
Trucap Finance (NSE:TRU) has a Gross Margin % of -80.18% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Trucap Finance and its competitors. According to the industry distribution chart, Trucap Finance ranks #364 out of 386 companies in the Credit Services industry, placing it in the top 94.3%.
Is Trucap Finance's Gross Margin % too high?
Trucap Finance's current Gross Margin % is -80.18%. Based on the distribution chart, Trucap Finance ranks #364 out of 386 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, Trucap Finance has a GF Score™ of 57/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Trucap Finance's Gross Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Trucap Finance ranks #364 out of 386 companies for Gross Margin %. This places Trucap Finance in the lower half of its industry. The industry median Gross Margin % is 51.85. 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 Credit Services company?
The median Gross Margin % among Credit Services companies is 51.85, based on 386 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. 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 Trucap Finance and its competitors. For the Credit Services industry, the median Gross Margin % is 51.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Trucap Finance's current Gross Margin % is -80.18%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Trucap Finance stock overvalued right now?
Based on GuruFocus' analysis, Trucap Finance (NSE:TRU) is currently considered Possible Value Trap. The stock's GF Value™ is ₹8.65, compared to a current price of ₹5.50 — trading 36.4% below its estimated fair value. The current Gross Margin % is -80.18%. Trucap Finance's overall GF Score™ is 57/100 with 5 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 Trucap Finance (NSE:TRU), the current Gross Margin % is -80.18% 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 Trucap Finance (NSE:TRU) Overvalued in 2026?
Based on GuruFocus' analysis, Trucap Finance stock appears to be undervalued.
The current stock price of ₹5.50 is trading 36.4% below its estimated GF Value™ of ₹8.65.
GuruFocus considers Trucap Finance to be Possible Value Trap.
Key valuation signals for NSE:TRU:
Gross Margin %: -80.18%
GF Value™: ₹8.65 vs. price of ₹5.50 (36.4% below fair value)
No single metric tells the full story. See the NSE:TRU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Trucap Finance Ltd is a non-banking finance company which engages in financing business in India. It offers products such as Loan Against Property, Personal Loan, Medical Loan and School Fee Loan among others. The company's operating segment includes Fund based activities and Advisory services. It generates maximum revenue from Fund based activities segment.
57GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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