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Smruthi OrganicsBOM:540686 -1.04%68 Net Margin % is 3.67% as of Mar. 2026, which is 17% above its 10-year median of 3.15. GuruFocus rates BOM:540686 with a GF Score™ of 68/100 and a GF Value™ of ₹107.46 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 962 Drug Manufacturers companies, Smruthi Organics ranks worse than 57.07% on this metric.
The historical rank and industry rank for Smruthi Organics's Net Margin % or its related term are showing as below:
BOM:540686'
s Net Margin % Range Over the Past 10 Years
Min: -3.35 Med: 3.15 Max: 13.76
Current: 3.36
BOM:540686's Net Margin % is ranked worse than 57.07% of 962
companies
in the Drug Manufacturers industry
Industry Median: 5.56
vs BOM:540686: 3.36
Smruthi Organics (BOM:540686) 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.
Smruthi Organics Net Margin % Related Terms
Smruthi Organics Net Margin % Historical Data
* Premium members only.
The historical data trend for Smruthi Organics'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 Drug Manufacturers - Specialty & Generic subindustry, Smruthi Organics'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.
Smruthi Organics Net Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Smruthi Organics's Net Margin % distribution charts can be found below:
* The bar in red indicates where Smruthi Organics'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.
Smruthi Organics (BOM:540686) has a Net Margin % of 3.67% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Smruthi Organics and its competitors. This is 17% above median its historical median of 3.15. According to the industry distribution chart, Smruthi Organics ranks #549 out of 962 companies in the Drug Manufacturers industry, placing it in the top 57.1%.
Is Smruthi Organics' Net Margin % too high?
Smruthi Organics' current Net Margin % of 3.67% is 17% above median its 10-year median of 3.15. The Drug Manufacturers industry median Net Margin % is 5.56. Smruthi Organics' value of 3.67% is 34% below this industry median. Based on the distribution chart, Smruthi Organics ranks #549 out of 962 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Smruthi Organics has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Smruthi Organics' Net Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Smruthi Organics ranks #549 out of 962 companies for Net Margin %. This places Smruthi Organics in the lower half of its industry. The industry median Net Margin % is 5.56. Smruthi Organics' value of 3.67% is 34% below this benchmark. While the company's 10-year median is 3.15 vs. the industry median of 5.56, Smruthi Organics 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 Drug Manufacturers company?
The median Net Margin % among Drug Manufacturers companies is 5.56, based on 962 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. Smruthi Organics's current Net Margin % of 3.67% is 34% 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 Smruthi Organics and its competitors. For the Drug Manufacturers industry, the median Net Margin % is 5.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smruthi Organics's current Net Margin % is 3.67%, which is 17% above median its own 10-year median of 3.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smruthi Organics stock overvalued right now?
Based on GuruFocus' analysis, Smruthi Organics (BOM:540686) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹107.46, compared to a current price of ₹118.80 — trading 10.6% above its estimated fair value. The current Net Margin % is 3.67%, which is 17% above median its 10-year median of 3.15 and 34% below the Drug Manufacturers industry median of 5.56. Smruthi Organics' overall GF Score™ is 68/100 with 4 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 Smruthi Organics (BOM:540686), the current Net Margin % is 3.67% 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 Smruthi Organics (BOM:540686) Overvalued in 2026?
Based on GuruFocus' analysis, Smruthi Organics stock appears to be overvalued.
The current stock price of ₹118.80 is trading 10.6% above its estimated GF Value™ of ₹107.46.
GuruFocus considers Smruthi Organics to be Modestly Overvalued.
Key valuation signals for BOM:540686:
Net Margin %: 3.67% (17% above median its 10-year median of 3.15)
GF Value™: ₹107.46 vs. price of ₹118.80 (10.6% above fair value)
Industry Position: 34% below the Drug Manufacturers median (#549 of 962)
No single metric tells the full story. See the BOM:540686 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smruthi Organics Ltd is engaged in the manufacture of bulk drugs and drug intermediates (API Products). The product portfolio includes Amlodipine Besilate, Amlodipine Base, S-Amlodipine Besilate, S-Amlodipine Base, Norfloxacin, Metformin HCI, Diloxanide Furoate, Phthaloyl Amlodipine, Pantoprazole Sodium, Pefloxacin Mesylate Dihydrate, Telmisartan, Losartan Potassium, and many more. It has two reportable business segments: Bulk Drugs and Drugs Intermediates (API), and Formulation. It generates the majority of its revenue from the Bulk Drugs and Drugs Intermediates (API) segment. Geographically, the company generates maximum revenue from outside India through exports, and the rest from its business within India.
68GF Score
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