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Butwal Power CoXNEP:BPCL -0.30%85 Gross Margin % is 55.49% as of Jan. 2026, which is 147% above its 10-year median of 22.49. GuruFocus rates XNEP:BPCL with a GF Score™ of 85/100 and a GF Value™ of NPR725.85 (Fairly Valued). The stock has 2 warning signs investors should review. Among 406 Utilities - Independent Power Producers companies, Butwal Power Co ranks worse than 67% on this metric.
Butwal Power Co had a gross margin of 55.49% for the quarter that ended in Jan. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Butwal Power Co was 12.00% per year.
Butwal Power Co (XNEP:BPCL) Gross Margin % Explanation
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
Butwal Power Co had a gross margin of 55.49% for the quarter that ended in Jan. 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.
Butwal Power Co Gross Margin % Related Terms
Butwal Power Co Gross Margin % Historical Data
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The historical data trend for Butwal Power Co'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.
Butwal Power Co Gross Margin % Competitor Comparison
For the Utilities - Renewable subindustry, Butwal Power Co'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.
Butwal Power Co Gross Margin % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Butwal Power Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Butwal Power Co'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.
Butwal Power Co (XNEP:BPCL) has a Gross Margin % of 55.49% as of Jan. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Butwal Power Co and its competitors. This is 147% above median its historical median of 22.49. Over the past decade, Butwal Power Co's Gross Margin % has ranged from 11.73 to 33.89. According to the industry distribution chart, Butwal Power Co ranks #272 out of 406 companies in the Utilities - Independent Power Producers industry, placing it in the top 67%.
Is Butwal Power Co's Gross Margin % too high?
Butwal Power Co's current Gross Margin % of 55.49% is 147% above median its 10-year median of 22.49. Over the past 10 years, this metric has ranged from a low of 11.73 to a high of 33.89. The Utilities - Independent Power Producers industry median Gross Margin % is 31.32. Butwal Power Co's value of 55.49% is 77.2% above this industry median. Based on the distribution chart, Butwal Power Co ranks #272 out of 406 companies in the Utilities - Independent Power Producers industry, which is below the industry midpoint. Overall, Butwal Power Co has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Butwal Power Co's Gross Margin % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Butwal Power Co ranks #272 out of 406 companies for Gross Margin %. This places Butwal Power Co in the lower half of its industry. The industry median Gross Margin % is 31.32. Butwal Power Co's value of 55.49% is 77.2% above this benchmark. Historically, Butwal Power Co's own Gross Margin % has ranged from 11.73 to 33.89 over the past decade. While the company's 10-year median is 22.49 vs. the industry median of 31.32, Butwal Power Co 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 an Utilities - Independent Power Producers company?
The median Gross Margin % among Utilities - Independent Power Producers companies is 31.32, based on 406 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. Butwal Power Co's current Gross Margin % of 55.49% is 77.2% 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 Butwal Power Co and its competitors. For the Utilities - Independent Power Producers industry, the median Gross Margin % is 31.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Butwal Power Co's current Gross Margin % is 55.49%, which is 147% above median its own 10-year median of 22.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Butwal Power Co stock overvalued right now?
Based on GuruFocus' analysis, Butwal Power Co (XNEP:BPCL) is currently considered Fairly Valued. The stock's GF Value™ is NPR725.85, compared to a current price of NPR673.00 — trading 7.3% below its estimated fair value. The current Gross Margin % is 55.49%, which is 147% above median its 10-year median of 22.49 and 77.2% above the Utilities - Independent Power Producers industry median of 31.32. Butwal Power Co's overall GF Score™ is 85/100 with 2 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 Butwal Power Co (XNEP:BPCL), the current Gross Margin % is 55.49% as of Jan. 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 Butwal Power Co (XNEP:BPCL) Overvalued in 2026?
Based on GuruFocus' analysis, Butwal Power Co stock appears to be undervalued.
The current stock price of NPR673.00 is trading 7.3% below its estimated GF Value™ of NPR725.85.
GuruFocus considers Butwal Power Co to be Fairly Valued.
Key valuation signals for XNEP:BPCL:
Gross Margin %: 55.49% (147% above median its 10-year median of 22.49)
GF Value™: NPR725.85 vs. price of NPR673.00 (7.3% below fair value)
Industry Position: 77.2% above the Utilities - Independent Power Producers median (#272 of 406)
No single metric tells the full story. See the XNEP:BPCL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Butwal Power Co Ltd is engaged in generation and distribution of electricity. The company is engaged in the development, operation, and maintenance of hydropower plants, engineering and design consultancy of hydropower and infrastructure projects, and manufacturing and repair of hydro-mechanical and electro-mechanical equipment for power plants through its subsidiary companies.
85GF Score
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