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.
Deepak Fertilisers & Petrochemicals Operating Margin % Related Terms
Deepak Fertilisers & Petrochemicals 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.
For the Chemicals subindustry, Deepak Fertilisers & Petrochemicals'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.
Deepak Fertilisers & Petrochemicals Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Deepak Fertilisers & Petrochemicals's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Deepak Fertilisers & Petrochemicals'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.
* 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.
Deepak Fertilisers & Petrochemicals (BOM:500645) has a Operating Margin % of 8.25% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Deepak Fertilisers & Petrochemicals and its competitors. This is 33% below median its historical median of 12.34. Over the past decade, Deepak Fertilisers & Petrochemicals' Operating Margin % has ranged from 4.67 to 22.94. According to the industry distribution chart, Deepak Fertilisers & Petrochemicals ranks #467 out of 1585 companies in the Chemicals industry, placing it in the top 29.5%.
Is Deepak Fertilisers & Petrochemicals' Operating Margin % too high?
Deepak Fertilisers & Petrochemicals' current Operating Margin % of 8.25% is 33% below median its 10-year median of 12.34. Over the past 10 years, this metric has ranged from a low of 4.67 to a high of 22.94. The Chemicals industry median Operating Margin % is 6.02. Deepak Fertilisers & Petrochemicals' value of 8.25% is 37% above this industry median. Based on the distribution chart, Deepak Fertilisers & Petrochemicals ranks #467 out of 1585 companies in the Chemicals industry, which is above the industry midpoint. Overall, Deepak Fertilisers & Petrochemicals has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Deepak Fertilisers & Petrochemicals' Operating Margin % compare to DOW?
According to the Chemicals industry distribution chart, Deepak Fertilisers & Petrochemicals ranks #467 out of 1585 companies for Operating Margin %. This puts Deepak Fertilisers & Petrochemicals in the upper half of its industry. The industry median Operating Margin % is 6.02. Deepak Fertilisers & Petrochemicals' value of 8.25% is 37% above this benchmark. Historically, Deepak Fertilisers & Petrochemicals' own Operating Margin % has ranged from 4.67 to 22.94 over the past decade. While the company's 10-year median is 12.34 vs. the industry median of 6.02, Deepak Fertilisers & Petrochemicals 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.02, based on 1,585 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. Deepak Fertilisers & Petrochemicals's current Operating Margin % of 8.25% is 37% 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 Deepak Fertilisers & Petrochemicals and its competitors. For the Chemicals industry, the median Operating Margin % is 6.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Deepak Fertilisers & Petrochemicals's current Operating Margin % is 8.25%, which is 33% below median its own 10-year median of 12.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Deepak Fertilisers & Petrochemicals stock overvalued right now?
Based on GuruFocus' analysis, Deepak Fertilisers & Petrochemicals (BOM:500645) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹1,299.63, compared to a current price of ₹1,565.85 — trading 20.5% above its estimated fair value. The current Operating Margin % is 8.25%, which is 33% below median its 10-year median of 12.34 and 37% above the Chemicals industry median of 6.02. Deepak Fertilisers & Petrochemicals' overall GF Score™ is 73/100 with 7 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 Deepak Fertilisers & Petrochemicals (BOM:500645), the current Operating Margin % is 8.25% 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 Deepak Fertilisers & Petrochemicals (BOM:500645) Overvalued in 2026?
Based on GuruFocus' analysis, Deepak Fertilisers & Petrochemicals stock appears to be overvalued.
The current stock price of ₹1,565.85 is trading 20.5% above its estimated GF Value™ of ₹1,299.63.
GuruFocus considers Deepak Fertilisers & Petrochemicals to be Modestly Overvalued.
Key valuation signals for BOM:500645:
Operating Margin %: 8.25% (33% below median its 10-year median of 12.34)
GF Value™: ₹1,299.63 vs. price of ₹1,565.85 (20.5% above fair value)
Industry Position: 37% above the Chemicals median (#467 of 1585)
No single metric tells the full story. See the BOM:500645 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Deepak Fertilisers & Petrochemicals Business Description
Deepak Fertilisers & Petrochemicals Corp Ltd carries on business in fertilizers, agri-services, bulk chemicals, mining chemicals, and value-added real estate. The segments of the company are Chemicals, Fertilizers, Realty, and Others. The majority of its revenue is generated from the Chemicals segment, which includes the manufacturing and trading of mining and industrial chemicals such as nitric acid, iso propyl alcohol, food-grade liquid carbon dioxide, and methanol, among others. The company caters mainly to the needs of the Indian Markets.
73GF Score
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