Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Gujarat Mineral Development's Degree of Operating Leverage for the quarter that ended in Mar. 2026 was -6.22. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Gujarat Mineral Development's Degree of Operating Leverage or its related term are showing as below:
NSE:GMDCLTD's Degree of Operating Leverage is ranked better than 92.86% of 126
companies
in the Other Energy Sources industry
Industry Median: 1.88
vs NSE:GMDCLTD: -6.22
Gujarat Mineral Development (NSE:GMDCLTD) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Gujarat Mineral Development Degree of Operating Leverage Related Terms
Gujarat Mineral Development Degree of Operating Leverage 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.
Gujarat Mineral Development Degree of Operating Leverage Chart
Gujarat Mineral Development Degree of Operating Leverage Competitor Comparison
For the Thermal Coal subindustry, Gujarat Mineral Development's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage 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 Mineral Development Degree of Operating Leverage vs Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, Gujarat Mineral Development's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Gujarat Mineral Development's Degree of Operating Leverage 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.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of -6.22 mean?
Gujarat Mineral Development (NSE:GMDCLTD) has a Degree of Operating Leverage of -6.22 as of Mar. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Gujarat Mineral Development and its competitors. According to the industry distribution chart, Gujarat Mineral Development ranks #9 out of 126 companies in the Other Energy Sources industry, placing it in the top 7.1%.
Is Gujarat Mineral Development's Degree of Operating Leverage too high?
Gujarat Mineral Development's current Degree of Operating Leverage is -6.22. Based on the distribution chart, Gujarat Mineral Development ranks #9 out of 126 companies in the Other Energy Sources industry, which is in the top quartile — a strong position relative to peers. Overall, Gujarat Mineral Development has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Gujarat Mineral Development's Degree of Operating Leverage compare to competitors?
According to the Other Energy Sources industry distribution chart, Gujarat Mineral Development ranks #9 out of 126 companies for Degree of Operating Leverage. This places Gujarat Mineral Development in the top 7% of its industry — outperforming the majority of peers. The industry median Degree of Operating Leverage is 1.88. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for an Other Energy Sources company?
The median Degree of Operating Leverage among Other Energy Sources companies is 1.88, based on 126 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage 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 Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Gujarat Mineral Development and its competitors. For the Other Energy Sources industry, the median Degree of Operating Leverage is 1.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gujarat Mineral Development's current Degree of Operating Leverage is -6.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gujarat Mineral Development stock overvalued right now?
Based on GuruFocus' analysis, Gujarat Mineral Development (NSE:GMDCLTD) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹370.68, compared to a current price of ₹589.75 — trading 59.1% above its estimated fair value. The current Degree of Operating Leverage is -6.22. Gujarat Mineral Development's overall GF Score™ is 68/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Gujarat Mineral Development (NSE:GMDCLTD), the current Degree of Operating Leverage is -6.22 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 Gujarat Mineral Development (NSE:GMDCLTD) Overvalued in 2026?
Based on GuruFocus' analysis, Gujarat Mineral Development stock appears to be overvalued.
The current stock price of ₹589.75 is trading 59.1% above its estimated GF Value™ of ₹370.68.
GuruFocus considers Gujarat Mineral Development to be Significantly Overvalued.
Key valuation signals for NSE:GMDCLTD:
Degree of Operating Leverage: -6.22
GF Value™: ₹370.68 vs. price of ₹589.75 (59.1% above fair value)
No single metric tells the full story. See the NSE:GMDCLTD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gujarat Mineral Development Corp Ltd is a mineral resource mining company. Its operations include lignite mining, bauxite mining, fluorspar mining, manganese mining, and power generation. The company's segments include Mining and Power. The majority of its revenue is derived from the Mining segment which engages in the mining and sale of manganese, bauxite, limestone, silica sand, and others. Geographically, the company operates only in India.
68GF Score
Get the complete analysis for NSE:GMDCLTD
Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:GMDCLTD has been successfully added to your 
