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Ushanti Colour ChemNSE:UCL +4.94%55 Net Margin % is 2.28% as of Mar. 2026, which is 34% below its 10-year median of 3.46. GuruFocus rates NSE:UCL with a GF Score™ of 55/100 and a GF Value™ of ₹91.32 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 1,583 Chemicals companies, Ushanti Colour Chem ranks worse than 74.35% on this metric.
Ushanti Colour Chem (NSE:UCL) 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.
Ushanti Colour Chem Net Margin % Related Terms
Ushanti Colour Chem Net Margin % Historical Data
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The historical data trend for Ushanti Colour Chem'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 Specialty Chemicals subindustry, Ushanti Colour Chem'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.
Ushanti Colour Chem Net Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Ushanti Colour Chem's Net Margin % distribution charts can be found below:
* The bar in red indicates where Ushanti Colour Chem'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.
Ushanti Colour Chem (NSE:UCL) has a Net Margin % of 2.28% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Ushanti Colour Chem and its competitors. This is 34% below median its historical median of 3.46. According to the industry distribution chart, Ushanti Colour Chem ranks #1177 out of 1583 companies in the Chemicals industry, placing it in the top 74.4%.
Is Ushanti Colour Chem's Net Margin % too high?
Ushanti Colour Chem's current Net Margin % of 2.28% is 34% below median its 10-year median of 3.46. The Chemicals industry median Net Margin % is 4.23. Ushanti Colour Chem's value of 2.28% is 46.1% below this industry median. Based on the distribution chart, Ushanti Colour Chem ranks #1177 out of 1583 companies in the Chemicals industry, which is below the industry midpoint. Overall, Ushanti Colour Chem has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ushanti Colour Chem's Net Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Ushanti Colour Chem ranks #1177 out of 1583 companies for Net Margin %. This places Ushanti Colour Chem in the lower half of its industry. The industry median Net Margin % is 4.23. Ushanti Colour Chem's value of 2.28% is 46.1% below this benchmark. While the company's 10-year median is 3.46 vs. the industry median of 4.23, Ushanti Colour Chem 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 Net Margin % for a Chemicals company?
The median Net Margin % among Chemicals companies is 4.23, based on 1,583 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. Ushanti Colour Chem's current Net Margin % of 2.28% is 46.1% 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 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 Ushanti Colour Chem and its competitors. For the Chemicals industry, the median Net Margin % is 4.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ushanti Colour Chem's current Net Margin % is 2.28%, which is 34% below median its own 10-year median of 3.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ushanti Colour Chem stock overvalued right now?
Based on GuruFocus' analysis, Ushanti Colour Chem (NSE:UCL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹91.32, compared to a current price of ₹248.40 — trading 172% above its estimated fair value. The current Net Margin % is 2.28%, which is 34% below median its 10-year median of 3.46 and 46.1% below the Chemicals industry median of 4.23. Ushanti Colour Chem's overall GF Score™ is 55/100 with 9 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 Ushanti Colour Chem (NSE:UCL), the current Net Margin % is 2.28% 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 Ushanti Colour Chem (NSE:UCL) Overvalued in 2026?
Based on GuruFocus' analysis, Ushanti Colour Chem stock appears to be overvalued.
The current stock price of ₹248.40 is trading 172% above its estimated GF Value™ of ₹91.32.
GuruFocus considers Ushanti Colour Chem to be Significantly Overvalued.
Key valuation signals for NSE:UCL:
Net Margin %: 2.28% (34% below median its 10-year median of 3.46)
GF Value™: ₹91.32 vs. price of ₹248.40 (172% above fair value)
Industry Position: 46.1% below the Chemicals median (#1177 of 1583)
No single metric tells the full story. See the NSE:UCL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ushanti Colour Chem Ltd is engaged in the business of manufacturing and trading of dyestuffs. It manufactures reactive and direct dyestuffs. It also manufactures copper phthalocyamine, blue crude used for manufacturing dyestuffs. The company caters to textile, garment, cotton, leather, nylon, paper, wool, ink, wood, plastic and paint industries.
55GF Score
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