Welspun EnterprisesNSE:WELENT -1.56%90 Gross Margin % is 28.18% as of Mar. 2026, which is 27% above its 10-year median of 22.15. GuruFocus rates NSE:WELENT with a GF Score™ of 90/100 and a GF Value™ of ₹507.14 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 1,721 Construction companies, Welspun Enterprises ranks better than 68.45% 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
Welspun Enterprises had a gross margin of 28.18% 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.
Welspun Enterprises Gross Margin % Related Terms
Welspun Enterprises Gross Margin % Historical Data
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The historical data trend for Welspun Enterprises'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:WELENT vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Welspun Enterprises'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.
Welspun Enterprises Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Welspun Enterprises's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Welspun Enterprises'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.
Welspun Enterprises (NSE:WELENT) has a Gross Margin % of 28.18% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Welspun Enterprises and its competitors. This is 27% above median its historical median of 22.15. Over the past decade, Welspun Enterprises' Gross Margin % has ranged from 18.76 to 30.01. According to the industry distribution chart, Welspun Enterprises ranks #543 out of 1721 companies in the Construction industry, placing it in the top 31.6%.
Is Welspun Enterprises' Gross Margin % too high?
Welspun Enterprises' current Gross Margin % of 28.18% is 27% above median its 10-year median of 22.15. Over the past 10 years, this metric has ranged from a low of 18.76 to a high of 30.01. The Construction industry median Gross Margin % is 20.73. Welspun Enterprises' value of 28.18% is 35.9% above this industry median. Based on the distribution chart, Welspun Enterprises ranks #543 out of 1721 companies in the Construction industry, which is above the industry midpoint. Overall, Welspun Enterprises has a GF Score™ of 90/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Welspun Enterprises' Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Welspun Enterprises ranks #543 out of 1721 companies for Gross Margin %. This puts Welspun Enterprises in the upper half of its industry. The industry median Gross Margin % is 20.73. Welspun Enterprises' value of 28.18% is 35.9% above this benchmark. Historically, Welspun Enterprises' own Gross Margin % has ranged from 18.76 to 30.01 over the past decade. While the company's 10-year median is 22.15 vs. the industry median of 20.73, Welspun Enterprises 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 Construction company?
The median Gross Margin % among Construction companies is 20.73, based on 1,721 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. Welspun Enterprises's current Gross Margin % of 28.18% is 35.9% 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 Welspun Enterprises and its competitors. For the Construction industry, the median Gross Margin % is 20.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Welspun Enterprises's current Gross Margin % is 28.18%, which is 27% above median its own 10-year median of 22.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Welspun Enterprises stock overvalued right now?
Based on GuruFocus' analysis, Welspun Enterprises (NSE:WELENT) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹507.14, compared to a current price of ₹600.90 — trading 18.5% above its estimated fair value. The current Gross Margin % is 28.18%, which is 27% above median its 10-year median of 22.15 and 35.9% above the Construction industry median of 20.73. Welspun Enterprises' overall GF Score™ is 90/100 with 8 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 Welspun Enterprises (NSE:WELENT), the current Gross Margin % is 28.18% 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 Welspun Enterprises (NSE:WELENT) Overvalued in 2026?
Based on GuruFocus' analysis, Welspun Enterprises stock appears to be overvalued.
The current stock price of ₹600.90 is trading 18.5% above its estimated GF Value™ of ₹507.14.
GuruFocus considers Welspun Enterprises to be Modestly Overvalued.
Key valuation signals for NSE:WELENT:
Gross Margin %: 28.18% (27% above median its 10-year median of 22.15)
GF Value™: ₹507.14 vs. price of ₹600.90 (18.5% above fair value)
Industry Position: 35.9% above the Construction median (#543 of 1721)
No single metric tells the full story. See the NSE:WELENT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Welspun Enterprises Ltd is an India-based company, engaged in road transport, water, tunneling, and rehabilitation infrastructure development (Engineering, procurement and construction (EPC), Hybrid Annuity Model (HAM), and Build, Operate and Transfer (BOT) basis) and oil and gas exploration activities. It is also engaged in carrying out Operation and maintenance (O&M) activities. The company operates through the segments of Transport, Water, and Tunneling and Rehabilitation. The firm generates maximum revenue from the Transport segment.
90GF Score
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