Ambuja CementsBOM:500425 -0.76%82 Operating Margin % is 3.77% as of Mar. 2026, which is 67% below its 10-year median of 11.34. GuruFocus rates BOM:500425 with a GF Score™ of 82/100 and a GF Value™ of ₹639.24 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 404 Building Materials companies, Ambuja Cements ranks worse than 53.22% on this metric.
Ambuja Cements Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -10.6%.
The historical rank and industry rank for Ambuja Cements's Operating Margin % or its related term are showing as below:
BOM:500425'
s Operating Margin % Range Over the Past 10 Years
Min: 6.87 Med: 11.34 Max: 17.75
Current: 6.87
BOM:500425's Operating Margin % is ranked worse than 53.22% of 404
companies
in the Building Materials industry
Industry Median: 7.65
vs BOM:500425: 6.87
Ambuja Cements's 5-Year Average Operating Margin % Growth Rate was -10.60% per year.
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.
Ambuja Cements Operating Margin % Related Terms
Ambuja Cements Operating Margin % Historical Data
* Premium members only.
The historical data trend for Ambuja Cements's Operating 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.
BOM:500425 vs CRH, VMC, MLM: Operating Margin % Comparison
For the Building Materials subindustry, Ambuja Cements'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.
Ambuja Cements Operating Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Ambuja Cements's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Ambuja Cements's Operating Margin % falls into.
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.
Ambuja Cements's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as
* 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.
Ambuja Cements (BOM:500425) has a Operating Margin % of 3.77% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Ambuja Cements and its competitors. This is 67% below median its historical median of 11.34. Over the past decade, Ambuja Cements' Operating Margin % has ranged from 6.87 to 17.75. According to the industry distribution chart, Ambuja Cements ranks #215 out of 404 companies in the Building Materials industry, placing it in the top 53.2%.
Is Ambuja Cements' Operating Margin % too high?
Ambuja Cements' current Operating Margin % of 3.77% is 67% below median its 10-year median of 11.34. Over the past 10 years, this metric has ranged from a low of 6.87 to a high of 17.75. The Building Materials industry median Operating Margin % is 7.65. Ambuja Cements' value of 3.77% is 50.7% below this industry median. Based on the distribution chart, Ambuja Cements ranks #215 out of 404 companies in the Building Materials industry, which is below the industry midpoint. Overall, Ambuja Cements has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ambuja Cements' Operating Margin % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Ambuja Cements ranks #215 out of 404 companies for Operating Margin %. This places Ambuja Cements in the lower half of its industry. The industry median Operating Margin % is 7.65. Ambuja Cements' value of 3.77% is 50.7% below this benchmark. Historically, Ambuja Cements' own Operating Margin % has ranged from 6.87 to 17.75 over the past decade. While the company's 10-year median is 11.34 vs. the industry median of 7.65, Ambuja Cements 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 Operating Margin % for a Building Materials company?
The median Operating Margin % among Building Materials companies is 7.65, based on 404 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. Ambuja Cements's current Operating Margin % of 3.77% is 50.7% 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 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 Ambuja Cements and its competitors. For the Building Materials industry, the median Operating Margin % is 7.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ambuja Cements's current Operating Margin % is 3.77%, which is 67% below median its own 10-year median of 11.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ambuja Cements stock overvalued right now?
Based on GuruFocus' analysis, Ambuja Cements (BOM:500425) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹639.24, compared to a current price of ₹423.60 — trading 33.7% below its estimated fair value. The current Operating Margin % is 3.77%, which is 67% below median its 10-year median of 11.34 and 50.7% below the Building Materials industry median of 7.65. Ambuja Cements' overall GF Score™ is 82/100 with 5 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 Ambuja Cements (BOM:500425), the current Operating Margin % is 3.77% 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 Ambuja Cements (BOM:500425) Overvalued in 2026?
Based on GuruFocus' analysis, Ambuja Cements stock appears to be undervalued.
The current stock price of ₹423.60 is trading 33.7% below its estimated GF Value™ of ₹639.24.
GuruFocus considers Ambuja Cements to be Significantly Undervalued.
Key valuation signals for BOM:500425:
Operating Margin %: 3.77% (67% below median its 10-year median of 11.34)
GF Value™: ₹639.24 vs. price of ₹423.60 (33.7% below fair value)
Industry Position: 50.7% below the Building Materials median (#215 of 404)
No single metric tells the full story. See the BOM:500425 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ambuja Cements Ltd is engaged in the manufacture and sale of cement, intermediary products, and cement-related products. The Company operates multiple cement manufacturing plants located at various locations and markets cement and cement-related products. Its product portfolio includes Ambuja Kawach, Ambuja Plus, Ambuja Compocem, Ambuja Cement, Ambuja Cool Walls, Purasand for Concrete & Plaster, and others. The Company generates revenue from within India.
82GF Score
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