Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Shree Krishna Paper Mills & Industries Operating Margin % Related Terms
Shree Krishna Paper Mills & Industries Operating Margin % 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.
Shree Krishna Paper Mills & Industries Operating Margin % Chart
Shree Krishna Paper Mills & Industries Annual Data
For the Paper & Paper Products subindustry, Shree Krishna Paper Mills & Industries's Operating Margin %, along with its competitors' market caps and Operating 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.
Shree Krishna Paper Mills & Industries Operating Margin % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Shree Krishna Paper Mills & Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Shree Krishna Paper Mills & Industries's Operating Margin % falls into.
Shree Krishna Paper Mills & Industries Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
* 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.
Shree Krishna Paper Mills & Industries (BOM:500388) has a Operating Margin % of 3.11% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Shree Krishna Paper Mills & Industries and its competitors. This is 17% above median its historical median of 2.65. According to the industry distribution chart, Shree Krishna Paper Mills & Industries ranks #135 out of 283 companies in the Forest Products industry, placing it in the top 47.7%.
Is Shree Krishna Paper Mills & Industries' Operating Margin % too high?
Shree Krishna Paper Mills & Industries' current Operating Margin % of 3.11% is 17% above median its 10-year median of 2.65. The Forest Products industry median Operating Margin % is 2.62. Shree Krishna Paper Mills & Industries' value of 3.11% is 18.7% above this industry median. Based on the distribution chart, Shree Krishna Paper Mills & Industries ranks #135 out of 283 companies in the Forest Products industry, which is above the industry midpoint. Overall, Shree Krishna Paper Mills & Industries has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shree Krishna Paper Mills & Industries' Operating Margin % compare to competitors?
According to the Forest Products industry distribution chart, Shree Krishna Paper Mills & Industries ranks #135 out of 283 companies for Operating Margin %. This puts Shree Krishna Paper Mills & Industries in the upper half of its industry. The industry median Operating Margin % is 2.62. Shree Krishna Paper Mills & Industries' value of 3.11% is 18.7% above this benchmark. While the company's 10-year median is 2.65 vs. the industry median of 2.62, Shree Krishna Paper Mills & Industries 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 Operating Margin % for a Forest Products company?
The median Operating Margin % among Forest Products companies is 2.62, based on 283 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Shree Krishna Paper Mills & Industries's current Operating Margin % of 3.11% is 18.7% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Shree Krishna Paper Mills & Industries and its competitors. For the Forest Products industry, the median Operating Margin % is 2.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shree Krishna Paper Mills & Industries's current Operating Margin % is 3.11%, which is 17% above median its own 10-year median of 2.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shree Krishna Paper Mills & Industries stock overvalued right now?
Based on GuruFocus' analysis, Shree Krishna Paper Mills & Industries (BOM:500388) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹68.16, compared to a current price of ₹101.00 — trading 48.2% above its estimated fair value. The current Operating Margin % is 3.11%, which is 17% above median its 10-year median of 2.65 and 18.7% above the Forest Products industry median of 2.62. Shree Krishna Paper Mills & Industries' overall GF Score™ is 60/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Shree Krishna Paper Mills & Industries (BOM:500388), the current Operating Margin % is 3.11% 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 Shree Krishna Paper Mills & Industries (BOM:500388) Overvalued in 2026?
Based on GuruFocus' analysis, Shree Krishna Paper Mills & Industries stock appears to be overvalued.
The current stock price of ₹101.00 is trading 48.2% above its estimated GF Value™ of ₹68.16.
GuruFocus considers Shree Krishna Paper Mills & Industries to be Significantly Overvalued.
Key valuation signals for BOM:500388:
Operating Margin %: 3.11% (17% above median its 10-year median of 2.65)
GF Value™: ₹68.16 vs. price of ₹101.00 (48.2% above fair value)
Industry Position: 18.7% above the Forest Products median (#135 of 283)
No single metric tells the full story. See the BOM:500388 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shree Krishna Paper Mills & Industries Business Description
Shree Krishna Paper Mills & Industries Ltd is an Indian company engaged in the manufacturing, marketing, and trading of paper. The product line of the company includes newsprint, coated paper, thermal paper, cast-coated paper, carbonless paper, pearl graphic paper, cup stock paper, color craft paper, absorbent kraft paper, and other types of paper and paper products. The company operates its business through a single segment, which is the manufacturing and sale of Paper. Geographically, the company derives a majority of its revenue from its customers within India.
60GF Score
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