Unichem LaboratoriesNSE:UNICHEMLAB -0.13%65 Gross Margin % is 53.40% as of Mar. 2026, which is 1% below its 10-year median of 53.76. GuruFocus rates NSE:UNICHEMLAB with a GF Score™ of 65/100 and a GF Value™ of ₹686.53 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 938 Drug Manufacturers companies, Unichem Laboratories ranks better than 59.06% on this metric.
Unichem Laboratories Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.5%.
The historical rank and industry rank for Unichem Laboratories's Gross Margin % or its related term are showing as below:
NSE:UNICHEMLAB'
s Gross Margin % Range Over the Past 10 Years
Min: 45.68 Med: 53.76 Max: 60.48
Current: 53.65
During the past 13 years, the highestGross Margin % of Unichem Laboratories was 60.48%. The lowest was 45.68%. And the median was 53.76%.
NSE:UNICHEMLAB's Gross Margin % is ranked better than 59.06% of 938
companies
in the Drug Manufacturers industry
Industry Median: 48.44
vs NSE:UNICHEMLAB: 53.65
Unichem Laboratories had a gross margin of 53.40% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Unichem Laboratories was -1.50% per year.
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
Unichem Laboratories had a gross margin of 53.40% 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.
Unichem Laboratories Gross Margin % Related Terms
Unichem Laboratories Gross Margin % Historical Data
* Premium members only.
The historical data trend for Unichem Laboratories'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 Drug Manufacturers - Specialty & Generic subindustry, Unichem Laboratories'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.
Unichem Laboratories Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Unichem Laboratories's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Unichem Laboratories'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.
Unichem Laboratories (NSE:UNICHEMLAB) has a Gross Margin % of 53.40% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Unichem Laboratories and its competitors. This is near median its historical median of 53.76. Over the past decade, Unichem Laboratories' Gross Margin % has ranged from 45.68 to 60.48. According to the industry distribution chart, Unichem Laboratories ranks #384 out of 938 companies in the Drug Manufacturers industry, placing it in the top 40.9%.
Is Unichem Laboratories' Gross Margin % too high?
Unichem Laboratories' current Gross Margin % of 53.40% is near median its 10-year median of 53.76. Over the past 10 years, this metric has ranged from a low of 45.68 to a high of 60.48. The Drug Manufacturers industry median Gross Margin % is 48.44. Unichem Laboratories' value of 53.40% is 10.2% above this industry median. Based on the distribution chart, Unichem Laboratories ranks #384 out of 938 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Unichem Laboratories has a GF Score™ of 65/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Unichem Laboratories' Gross Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Unichem Laboratories ranks #384 out of 938 companies for Gross Margin %. This puts Unichem Laboratories in the upper half of its industry. The industry median Gross Margin % is 48.44. Unichem Laboratories' value of 53.40% is 10.2% above this benchmark. Historically, Unichem Laboratories' own Gross Margin % has ranged from 45.68 to 60.48 over the past decade. While the company's 10-year median is 53.76 vs. the industry median of 48.44, Unichem Laboratories 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 Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.44, based on 938 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. Unichem Laboratories's current Gross Margin % of 53.40% is 10.2% 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 Unichem Laboratories and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Unichem Laboratories's current Gross Margin % is 53.40%, which is near median its own 10-year median of 53.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Unichem Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Unichem Laboratories (NSE:UNICHEMLAB) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹686.53, compared to a current price of ₹433.00 — trading 36.9% below its estimated fair value. The current Gross Margin % is 53.40%, which is near median its 10-year median of 53.76 and 10.2% above the Drug Manufacturers industry median of 48.44. Unichem Laboratories' overall GF Score™ is 65/100 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 Unichem Laboratories (NSE:UNICHEMLAB), the current Gross Margin % is 53.40% 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 Unichem Laboratories (NSE:UNICHEMLAB) Overvalued in 2026?
Based on GuruFocus' analysis, Unichem Laboratories stock appears to be undervalued.
The current stock price of ₹433.00 is trading 36.9% below its estimated GF Value™ of ₹686.53.
GuruFocus considers Unichem Laboratories to be Significantly Undervalued.
Key valuation signals for NSE:UNICHEMLAB:
Gross Margin %: 53.40% (near median its 10-year median of 53.76)
GF Value™: ₹686.53 vs. price of ₹433.00 (36.9% below fair value)
Industry Position: 10.2% above the Drug Manufacturers median (#384 of 938)
No single metric tells the full story. See the NSE:UNICHEMLAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Unichem Laboratories Ltd is an India based pharmaceutical company. It manufactures a range of Active Pharmaceutical Ingredients (APIs). The company's products are offered in the areas of gastroenterology, cardiology, diabetology, psychiatry, neurology, anti-bacterial, anti-infectives and pain management. Some of its products include Apixaban, Brimonidine Tartrate, Finofibrate, Glipizide, Piroxicam and others. The company has a market presence with sales in India and outside India, and the majority of the revenue derived from India. Its product categories comprises Formulations and Bulk Drugs and Chemicals.
65GF Score
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