Raama FinanceBOM:538540 -1.97%77 Net Margin % is 27.29% as of Mar. 2026, which is 626% above its 10-year median of 3.76. GuruFocus rates BOM:538540 with a GF Score™ of 77/100 and a GF Value™ of ₹32.21 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 531 Credit Services companies, Raama Finance ranks better than 67.23% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Raama Finance's Net Income for the
three
months ended in Mar. 2026 was ₹26.3 Mil. Raama Finance's Revenue for the
three
months ended in Mar. 2026 was ₹96.3 Mil. Therefore, Raama Finance's net margin for the quarter that ended in Mar. 2026 was 27.29%.
The historical rank and industry rank for Raama Finance's Net Margin % or its related term are showing as below:
BOM:538540'
s Net Margin % Range Over the Past 10 Years
Min: 1.89 Med: 3.76 Max: 26.85
Current: 25.39
BOM:538540's Net Margin % is ranked better than 67.23% of 531
companies
in the Credit Services industry
Industry Median: 14.74
vs BOM:538540: 25.39
Raama Finance (BOM:538540) 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.
Raama Finance Net Margin % Related Terms
Raama Finance Net Margin % Historical Data
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The historical data trend for Raama Finance'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 Credit Services subindustry, Raama Finance'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.
Raama Finance Net Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Raama Finance's Net Margin % distribution charts can be found below:
* The bar in red indicates where Raama Finance'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.
Raama Finance (BOM:538540) has a Net Margin % of 27.29% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Raama Finance and its competitors. This is 626% above median its historical median of 3.76. Over the past decade, Raama Finance's Net Margin % has ranged from 1.89 to 26.85. According to the industry distribution chart, Raama Finance ranks #174 out of 531 companies in the Credit Services industry, placing it in the top 32.8%.
Is Raama Finance's Net Margin % too high?
Raama Finance's current Net Margin % of 27.29% is 626% above median its 10-year median of 3.76. Over the past 10 years, this metric has ranged from a low of 1.89 to a high of 26.85. The Credit Services industry median Net Margin % is 14.74. Raama Finance's value of 27.29% is 85.1% above this industry median. Based on the distribution chart, Raama Finance ranks #174 out of 531 companies in the Credit Services industry, which is above the industry midpoint. Overall, Raama Finance has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Raama Finance's Net Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Raama Finance ranks #174 out of 531 companies for Net Margin %. This puts Raama Finance in the upper half of its industry. The industry median Net Margin % is 14.74. Raama Finance's value of 27.29% is 85.1% above this benchmark. Historically, Raama Finance's own Net Margin % has ranged from 1.89 to 26.85 over the past decade. While the company's 10-year median is 3.76 vs. the industry median of 14.74, Raama Finance 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 Net Margin % for a Credit Services company?
The median Net Margin % among Credit Services companies is 14.74, based on 531 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. Raama Finance's current Net Margin % of 27.29% is 85.1% 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 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 Raama Finance and its competitors. For the Credit Services industry, the median Net Margin % is 14.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Raama Finance's current Net Margin % is 27.29%, which is 626% above median its own 10-year median of 3.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Raama Finance stock overvalued right now?
Based on GuruFocus' analysis, Raama Finance (BOM:538540) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹32.21, compared to a current price of ₹17.87 — trading 44.5% below its estimated fair value. The current Net Margin % is 27.29%, which is 626% above median its 10-year median of 3.76 and 85.1% above the Credit Services industry median of 14.74. Raama Finance's overall GF Score™ is 77/100 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 Raama Finance (BOM:538540), the current Net Margin % is 27.29% 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 Raama Finance (BOM:538540) Overvalued in 2026?
Based on GuruFocus' analysis, Raama Finance stock appears to be undervalued.
The current stock price of ₹17.87 is trading 44.5% below its estimated GF Value™ of ₹32.21.
GuruFocus considers Raama Finance to be Significantly Undervalued.
Key valuation signals for BOM:538540:
Net Margin %: 27.29% (626% above median its 10-year median of 3.76)
GF Value™: ₹32.21 vs. price of ₹17.87 (44.5% below fair value)
Industry Position: 85.1% above the Credit Services median (#174 of 531)
No single metric tells the full story. See the BOM:538540 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Raama Finance Ltd, formerly known as Ramchandra Leasing & Finance Ltd, is a non-banking finance company. It is engaged in commercial loan activities. Its services include leasing (short term and long term) and hire purchase. It provides financial assistance in the form of loans (secured and unsecured) to corporate bodies. The company offers working capital term loan for a term period of a year and two.
77GF 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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