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Sovereign Diamonds (BOM:523826) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Sovereign Diamonds Net Margin % Related Terms
Sovereign Diamonds Net Margin % Historical Data
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The historical data trend for Sovereign Diamonds's Net 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.
For the Luxury Goods subindustry, Sovereign Diamonds's Net Margin %, along with its competitors' market caps and Net 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.
Sovereign Diamonds Net Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Sovereign Diamonds's Net Margin % distribution charts can be found below:
* The bar in red indicates where Sovereign Diamonds's Net 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.
Sovereign Diamonds (BOM:523826) has a Net Margin % of -15.28% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Sovereign Diamonds and its competitors. According to the industry distribution chart, Sovereign Diamonds ranks #1065 out of 1131 companies in the Retail - Cyclical industry, placing it in the top 94.2%.
Is Sovereign Diamonds' Net Margin % too high?
Sovereign Diamonds' current Net Margin % is -15.28%. Based on the distribution chart, Sovereign Diamonds ranks #1065 out of 1131 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Sovereign Diamonds has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sovereign Diamonds' Net Margin % compare to TPR?
According to the Retail - Cyclical industry distribution chart, Sovereign Diamonds ranks #1065 out of 1131 companies for Net Margin %. This places Sovereign Diamonds in the lower half of its industry. The industry median Net Margin % is 2.35. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Retail - Cyclical company?
The median Net Margin % among Retail - Cyclical companies is 2.35, based on 1,131 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Sovereign Diamonds and its competitors. For the Retail - Cyclical industry, the median Net Margin % is 2.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sovereign Diamonds's current Net Margin % is -15.28%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sovereign Diamonds stock overvalued right now?
Based on GuruFocus' analysis, Sovereign Diamonds (BOM:523826) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹14.22, compared to a current price of ₹26.54 — trading 86.6% above its estimated fair value. The current Net Margin % is -15.28%. Sovereign Diamonds' overall GF Score™ is 45/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Sovereign Diamonds (BOM:523826), the current Net Margin % is -15.28% 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 Sovereign Diamonds (BOM:523826) Overvalued in 2026?
Based on GuruFocus' analysis, Sovereign Diamonds stock appears to be overvalued.
The current stock price of ₹26.54 is trading 86.6% above its estimated GF Value™ of ₹14.22.
GuruFocus considers Sovereign Diamonds to be Significantly Overvalued.
Key valuation signals for BOM:523826:
Net Margin %: -15.28%
GF Value™: ₹14.22 vs. price of ₹26.54 (86.6% above fair value)
No single metric tells the full story. See the BOM:523826 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sovereign Diamonds Ltd is engaged in manufacturing, selling of Gold Jewellery, Diamond Studded Jewellery and Silver item. The company supplies its products to retail brands and retail chains. It has only one operating segment Jewellery Business.
45GF Score
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Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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