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Zenith DrugsNSE:ZENITHDRUG +6.92%45 Gross Margin % is 26.72% as of Mar. 2026, which is 4% below its 10-year median of 27.79. GuruFocus rates NSE:ZENITHDRUG with a GF Score™ of 45/100. The stock has 8 warning signs investors should review. Among 943 Drug Manufacturers companies, Zenith Drugs ranks worse than 82.61% on this metric.
The historical rank and industry rank for Zenith Drugs's Gross Margin % or its related term are showing as below:
NSE:ZENITHDRUG'
s Gross Margin % Range Over the Past 10 Years
Min: 18.19 Med: 27.79 Max: 34.38
Current: 28.42
During the past 6 years, the highestGross Margin % of Zenith Drugs was 34.38%. The lowest was 18.19%. And the median was 27.79%.
NSE:ZENITHDRUG's Gross Margin % is ranked worse than 82.61% of 943
companies
in the Drug Manufacturers industry
Industry Median: 48.54
vs NSE:ZENITHDRUG: 28.42
Zenith Drugs had a gross margin of 26.72% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Zenith Drugs was 6.70% 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
Zenith Drugs had a gross margin of 26.72% 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.
Zenith Drugs Gross Margin % Related Terms
Zenith Drugs Gross Margin % Historical Data
* Premium members only.
The historical data trend for Zenith Drugs'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:ZENITHDRUG vs ZTS, UTHR: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Zenith Drugs'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.
Zenith Drugs Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Zenith Drugs's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zenith Drugs'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.
Zenith Drugs (NSE:ZENITHDRUG) has a Gross Margin % of 26.72% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Zenith Drugs and its competitors. This is near median its historical median of 27.79. Over the past decade, Zenith Drugs' Gross Margin % has ranged from 18.19 to 34.38. According to the industry distribution chart, Zenith Drugs ranks #779 out of 943 companies in the Drug Manufacturers industry, placing it in the top 82.6%.
Is Zenith Drugs' Gross Margin % too high?
Zenith Drugs' current Gross Margin % of 26.72% is near median its 10-year median of 27.79. Over the past 10 years, this metric has ranged from a low of 18.19 to a high of 34.38. The Drug Manufacturers industry median Gross Margin % is 48.54. Zenith Drugs' value of 26.72% is 45% below this industry median. Based on the distribution chart, Zenith Drugs ranks #779 out of 943 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Zenith Drugs has a GF Score™ of 45/100, reflecting its overall financial health beyond just this single metric.
How does Zenith Drugs' Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Zenith Drugs ranks #779 out of 943 companies for Gross Margin %. This places Zenith Drugs in the lower half of its industry. The industry median Gross Margin % is 48.54. Zenith Drugs' value of 26.72% is 45% below this benchmark. Historically, Zenith Drugs' own Gross Margin % has ranged from 18.19 to 34.38 over the past decade. While the company's 10-year median is 27.79 vs. the industry median of 48.54, Zenith Drugs 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 Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.54, based on 943 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. Zenith Drugs's current Gross Margin % of 26.72% is 45% 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 Zenith Drugs and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zenith Drugs's current Gross Margin % is 26.72%, which is near median its own 10-year median of 27.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zenith Drugs stock overvalued right now?
Zenith Drugs (NSE:ZENITHDRUG) has a current Gross Margin % of 26.72%. The current Gross Margin % is 26.72%, which is near median its 10-year median of 27.79 and 45% below the Drug Manufacturers industry median of 48.54. Zenith Drugs' overall GF Score™ is 45/100 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 Zenith Drugs (NSE:ZENITHDRUG), the current Gross Margin % is 26.72% 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.
Zenith Drugs Ltd is a pharmaceutical manufacturing and trading company. It offers a wide range of formulations in various forms such as ORS Powder, Liquid Orals, Ointments, Liquid Externals, Creams, Gels, Capsules, and Tablets. It is also into Generic Medicines.
45GF Score
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