VIP ClothingNSE:VIPCLOTHNG -0.31%59 Gross Margin % is 22.44% as of Mar. 2026, which is 23% below its 10-year median of 29.21. GuruFocus rates NSE:VIPCLOTHNG with a GF Score™ of 59/100 and a GF Value™ of ₹45.20 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 1,028 Manufacturing - Apparel & Accessories companies, VIP Clothing ranks worse than 54.86% on this metric.
VIP Clothing Ltd gross margin has been in long-term decline. The average rate of decline per year is -2%.
The historical rank and industry rank for VIP Clothing's Gross Margin % or its related term are showing as below:
NSE:VIPCLOTHNG'
s Gross Margin % Range Over the Past 10 Years
Min: 24.78 Med: 29.21 Max: 41.96
Current: 24.78
During the past 13 years, the highestGross Margin % of VIP Clothing was 41.96%. The lowest was 24.78%. And the median was 29.21%.
NSE:VIPCLOTHNG's Gross Margin % is ranked worse than 54.86% of 1028
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 28.39
vs NSE:VIPCLOTHNG: 24.78
VIP Clothing had a gross margin of 22.44% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for VIP Clothing was -2.00% 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
VIP Clothing had a gross margin of 22.44% 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.
VIP Clothing Gross Margin % Related Terms
VIP Clothing Gross Margin % Historical Data
* Premium members only.
The historical data trend for VIP Clothing'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:VIPCLOTHNG vs RL, LEVI, VFC: Gross Margin % Comparison
For the Apparel Manufacturing subindustry, VIP Clothing'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.
VIP Clothing Gross Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, VIP Clothing's Gross Margin % distribution charts can be found below:
* The bar in red indicates where VIP Clothing'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.
VIP Clothing (NSE:VIPCLOTHNG) has a Gross Margin % of 22.44% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on VIP Clothing and its competitors. This is 23% below median its historical median of 29.21. Over the past decade, VIP Clothing's Gross Margin % has ranged from 24.78 to 41.96. According to the industry distribution chart, VIP Clothing ranks #564 out of 1028 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 54.9%.
Is VIP Clothing's Gross Margin % too high?
VIP Clothing's current Gross Margin % of 22.44% is 23% below median its 10-year median of 29.21. Over the past 10 years, this metric has ranged from a low of 24.78 to a high of 41.96. The Manufacturing - Apparel & Accessories industry median Gross Margin % is 28.39. VIP Clothing's value of 22.44% is 21% below this industry median. Based on the distribution chart, VIP Clothing ranks #564 out of 1028 companies in the Manufacturing - Apparel & Accessories industry, which is below the industry midpoint. Overall, VIP Clothing has a GF Score™ of 59/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does VIP Clothing's Gross Margin % compare to RL and LEVI?
According to the Manufacturing - Apparel & Accessories industry distribution chart, VIP Clothing ranks #564 out of 1028 companies for Gross Margin %. This places VIP Clothing in the lower half of its industry. The industry median Gross Margin % is 28.39. VIP Clothing's value of 22.44% is 21% below this benchmark. Historically, VIP Clothing's own Gross Margin % has ranged from 24.78 to 41.96 over the past decade. While the company's 10-year median is 29.21 vs. the industry median of 28.39, VIP Clothing 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 Manufacturing - Apparel & Accessories company?
The median Gross Margin % among Manufacturing - Apparel & Accessories companies is 28.39, based on 1,028 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. VIP Clothing's current Gross Margin % of 22.44% is 21% 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 VIP Clothing and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Gross Margin % is 28.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. VIP Clothing's current Gross Margin % is 22.44%, which is 23% below median its own 10-year median of 29.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is VIP Clothing stock overvalued right now?
Based on GuruFocus' analysis, VIP Clothing (NSE:VIPCLOTHNG) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹45.20, compared to a current price of ₹25.93 — trading 42.6% below its estimated fair value. The current Gross Margin % is 22.44%, which is 23% below median its 10-year median of 29.21 and 21% below the Manufacturing - Apparel & Accessories industry median of 28.39. VIP Clothing's overall GF Score™ is 59/100 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 VIP Clothing (NSE:VIPCLOTHNG), the current Gross Margin % is 22.44% 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 VIP Clothing (NSE:VIPCLOTHNG) Overvalued in 2026?
Based on GuruFocus' analysis, VIP Clothing stock appears to be undervalued.
The current stock price of ₹25.93 is trading 42.6% below its estimated GF Value™ of ₹45.20.
GuruFocus considers VIP Clothing to be Significantly Undervalued.
Key valuation signals for NSE:VIPCLOTHNG:
Gross Margin %: 22.44% (23% below median its 10-year median of 29.21)
GF Value™: ₹45.20 vs. price of ₹25.93 (42.6% below fair value)
Industry Position: 21% below the Manufacturing - Apparel & Accessories median (#564 of 1028)
No single metric tells the full story. See the NSE:VIPCLOTHNG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
VIP Clothing Ltd is an Indian company which is active in manufacturing innerwear and socks under the brand VIP Inners, Frenchie, Frenchie X, VIP Leader, and VIP Feelings and all of their sub-brands for men and women. The company has one operating segment, namely Hosiery and others. Geographically the company generates the majority of their revenue within India.
59GF Score
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