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RMC SwitchgearsBOM:540358 -3.41%72 Net Margin % is 2.04% as of Mar. 2026, which is 33% below its 10-year median of 3.06. GuruFocus rates BOM:540358 with a GF Score™ of 72/100 and a GF Value™ of ₹1,366.62 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 3,032 Industrial Products companies, RMC Switchgears ranks better than 55.87% on this metric.
The historical rank and industry rank for RMC Switchgears's Net Margin % or its related term are showing as below:
BOM:540358'
s Net Margin % Range Over the Past 10 Years
Min: 0.51 Med: 3.06 Max: 9.65
Current: 5.58
BOM:540358's Net Margin % is ranked better than 55.87% of 3032
companies
in the Industrial Products industry
Industry Median: 4.5
vs BOM:540358: 5.58
RMC Switchgears (BOM:540358) 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.
RMC Switchgears Net Margin % Related Terms
RMC Switchgears Net Margin % Historical Data
* Premium members only.
The historical data trend for RMC Switchgears'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 Electrical Equipment & Parts subindustry, RMC Switchgears'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.
RMC Switchgears Net Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, RMC Switchgears's Net Margin % distribution charts can be found below:
* The bar in red indicates where RMC Switchgears'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.
RMC Switchgears (BOM:540358) has a Net Margin % of 2.04% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on RMC Switchgears and its competitors. This is 33% below median its historical median of 3.06. Over the past decade, RMC Switchgears' Net Margin % has ranged from 0.51 to 9.65. According to the industry distribution chart, RMC Switchgears ranks #1338 out of 3032 companies in the Industrial Products industry, placing it in the top 44.1%.
Is RMC Switchgears' Net Margin % too high?
RMC Switchgears' current Net Margin % of 2.04% is 33% below median its 10-year median of 3.06. Over the past 10 years, this metric has ranged from a low of 0.51 to a high of 9.65. The Industrial Products industry median Net Margin % is 4.50. RMC Switchgears' value of 2.04% is 54.7% below this industry median. Based on the distribution chart, RMC Switchgears ranks #1338 out of 3032 companies in the Industrial Products industry, which is above the industry midpoint. Overall, RMC Switchgears has a GF Score™ of 72/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does RMC Switchgears' Net Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, RMC Switchgears ranks #1338 out of 3032 companies for Net Margin %. This puts RMC Switchgears in the upper half of its industry. The industry median Net Margin % is 4.50. RMC Switchgears' value of 2.04% is 54.7% below this benchmark. Historically, RMC Switchgears' own Net Margin % has ranged from 0.51 to 9.65 over the past decade. While the company's 10-year median is 3.06 vs. the industry median of 4.50, RMC Switchgears 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 an Industrial Products company?
The median Net Margin % among Industrial Products companies is 4.50, based on 3,032 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. RMC Switchgears's current Net Margin % of 2.04% is 54.7% 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 RMC Switchgears and its competitors. For the Industrial Products industry, the median Net Margin % is 4.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RMC Switchgears's current Net Margin % is 2.04%, which is 33% below median its own 10-year median of 3.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RMC Switchgears stock overvalued right now?
Based on GuruFocus' analysis, RMC Switchgears (BOM:540358) is currently considered Possible Value Trap. The stock's GF Value™ is ₹1,366.62, compared to a current price of ₹269.50 — trading 80.3% below its estimated fair value. The current Net Margin % is 2.04%, which is 33% below median its 10-year median of 3.06 and 54.7% below the Industrial Products industry median of 4.50. RMC Switchgears' overall GF Score™ is 72/100 with 6 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 RMC Switchgears (BOM:540358), the current Net Margin % is 2.04% 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 RMC Switchgears (BOM:540358) Overvalued in 2026?
Based on GuruFocus' analysis, RMC Switchgears stock appears to be undervalued.
The current stock price of ₹269.50 is trading 80.3% below its estimated GF Value™ of ₹1,366.62.
GuruFocus considers RMC Switchgears to be Possible Value Trap.
Key valuation signals for BOM:540358:
Net Margin %: 2.04% (33% below median its 10-year median of 3.06)
GF Value™: ₹1,366.62 vs. price of ₹269.50 (80.3% below fair value)
Industry Position: 54.7% below the Industrial Products median (#1338 of 3032)
No single metric tells the full story. See the BOM:540358 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RMC Switchgears Ltd designs and manufactures electronic energy meters, enclosures for energy metering, distribution boxes, panels, sheet moulding compounds, bulk moulding compounds, and solar power equipment, and provides turnkey contracts. The company operates in two segments: primary and secondary. The primary segment is engaged in "Switch Gear Engineering" and "Construction contracts for the power distribution/transmission sector." The secondary segment operates mainly within the geographical limits of India.
72GF Score
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