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 Steel Pipes & Industries had a gross margin of 63.57% 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.
Zenith Steel Pipes & Industries Gross Margin % Related Terms
Zenith Steel Pipes & Industries Gross Margin % Historical Data
* 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:ZENITHSTL vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, Zenith Steel Pipes & Industries'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 Steel Pipes & Industries Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Zenith Steel Pipes & Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zenith Steel Pipes & Industries'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 Steel Pipes & Industries (NSE:ZENITHSTL) has a Gross Margin % of 63.57% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Zenith Steel Pipes & Industries and its competitors. This is 842% above median its historical median of 6.75. According to the industry distribution chart, Zenith Steel Pipes & Industries ranks #44 out of 592 companies in the Steel industry, placing it in the top 7.4%.
Is Zenith Steel Pipes & Industries' Gross Margin % too high?
Zenith Steel Pipes & Industries' current Gross Margin % of 63.57% is 842% above median its 10-year median of 6.75. The Steel industry median Gross Margin % is 12.55. Zenith Steel Pipes & Industries' value of 63.57% is 406.5% above this industry median. Based on the distribution chart, Zenith Steel Pipes & Industries ranks #44 out of 592 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Zenith Steel Pipes & Industries has a GF Score™ of 47/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zenith Steel Pipes & Industries' Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Zenith Steel Pipes & Industries ranks #44 out of 592 companies for Gross Margin %. This places Zenith Steel Pipes & Industries in the top 7% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 12.55. Zenith Steel Pipes & Industries' value of 63.57% is 406.5% above this benchmark. While the company's 10-year median is 6.75 vs. the industry median of 12.55, Zenith Steel Pipes & Industries 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 Steel company?
The median Gross Margin % among Steel companies is 12.55, based on 592 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 Steel Pipes & Industries's current Gross Margin % of 63.57% is 406.5% 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 Zenith Steel Pipes & Industries and its competitors. For the Steel industry, the median Gross Margin % is 12.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zenith Steel Pipes & Industries's current Gross Margin % is 63.57%, which is 842% above median its own 10-year median of 6.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zenith Steel Pipes & Industries stock overvalued right now?
Based on GuruFocus' analysis, Zenith Steel Pipes & Industries (NSE:ZENITHSTL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹3.26, compared to a current price of ₹5.61 — trading 72.1% above its estimated fair value. The current Gross Margin % is 63.57%, which is 842% above median its 10-year median of 6.75 and 406.5% above the Steel industry median of 12.55. Zenith Steel Pipes & Industries' overall GF Score™ is 47/100 with 7 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 Steel Pipes & Industries (NSE:ZENITHSTL), the current Gross Margin % is 63.57% 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 Zenith Steel Pipes & Industries (NSE:ZENITHSTL) Overvalued in 2026?
Based on GuruFocus' analysis, Zenith Steel Pipes & Industries stock appears to be overvalued.
The current stock price of ₹5.61 is trading 72.1% above its estimated GF Value™ of ₹3.26.
GuruFocus considers Zenith Steel Pipes & Industries to be Significantly Overvalued.
Key valuation signals for NSE:ZENITHSTL:
Gross Margin %: 63.57% (842% above median its 10-year median of 6.75)
GF Value™: ₹3.26 vs. price of ₹5.61 (72.1% above fair value)
Industry Position: 406.5% above the Steel median (#44 of 592)
No single metric tells the full story. See the NSE:ZENITHSTL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zenith Steel Pipes & Industries Business Description
Zenith Steel Pipes & Industries Ltd is a manufacturer of steel pipes in India. Its product portfolio includes Electric Resistance Welded Black pipes, Electric Resistance Welded GI pipes, HSAW Pipes, and others. The vast majority of its revenue comes from India.
47GF Score
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