Gujarat Containers Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.4%.
The historical rank and industry rank for Gujarat Containers's Gross Margin % or its related term are showing as below:
BOM:513507'
s Gross Margin % Range Over the Past 10 Years
Min: 20.86 Med: 24.94 Max: 31.4
Current: 24.01
During the past 13 years, the highestGross Margin % of Gujarat Containers was 31.40%. The lowest was 20.86%. And the median was 24.94%.
BOM:513507's Gross Margin % is ranked better than 57.53% of 372
companies
in the Packaging & Containers industry
Industry Median: 21.59
vs BOM:513507: 24.01
Gujarat Containers had a gross margin of 25.72% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Gujarat Containers was -1.40% per year.
Gujarat Containers Gross Margin % Historical Data
The historical data trend for Gujarat Containers'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.
Competitive Comparison of Gujarat Containers's Gross Margin %
For the Packaging & Containers subindustry, Gujarat Containers'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.
Gujarat Containers's Gross Margin % Distribution in the Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Gujarat Containers's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Gujarat Containers'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.
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
Gujarat Containers had a gross margin of 25.72% for the quarter that ended in Mar. 2024 => 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.
Gujarat Containers Gross Margin % Related Terms
Thank you for viewing the detailed overview of Gujarat Containers's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Gujarat Containers (BOM:513507) Business Description
Gujarat Containers Ltd is a container manufacturing company. It is engaged in the manufacturing of various types of barrels. Its products include galvanized, epoxy, composite, all side welded, open-top, M.S. plain, non-return valve, HMHDPE, and GP sheet barrels, as well as carboys and liners, and jerry cans. The company offers its products for applications in various industries, including a plethora of chemicals; agrochemicals, aromatic products; paints, coatings, and dyestuff; food products; petroleum products and their by-products; lubricating oils; pharmaceutical; hazardous chemicals; and resins. The company operates in one operating segment namely, the business of manufacturing steel barrels.
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