Seshasayee Paper & BoardsBOM:502450 +4.58%72 Operating Margin % is 2.12% as of Mar. 2026, which is 87% below its 10-year median of 16.46. GuruFocus rates BOM:502450 with a GF Score™ of 72/100 and a GF Value™ of ₹272.47 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 283 Forest Products companies, Seshasayee Paper & Boards ranks better than 53.36% on this metric.
Seshasayee Paper & Boards (BOM:502450) Operating Margin % Explanation
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.
Seshasayee Paper & Boards Operating Margin % Related Terms
Seshasayee Paper & Boards 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.
Seshasayee Paper & Boards Operating Margin % Chart
Seshasayee Paper & Boards Operating Margin % Competitor Comparison
For the Paper & Paper Products subindustry, Seshasayee Paper & Boards'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.
Seshasayee Paper & Boards Operating Margin % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Seshasayee Paper & Boards's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Seshasayee Paper & Boards's Operating Margin % falls into.
Seshasayee Paper & Boards 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.
Seshasayee Paper & Boards'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.
Seshasayee Paper & Boards (BOM:502450) has a Operating Margin % of 2.12% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Seshasayee Paper & Boards and its competitors. This is 87% below median its historical median of 16.46. Over the past decade, Seshasayee Paper & Boards' Operating Margin % has ranged from 2.98 to 23.95. According to the industry distribution chart, Seshasayee Paper & Boards ranks #132 out of 283 companies in the Forest Products industry, placing it in the top 46.6%.
Is Seshasayee Paper & Boards' Operating Margin % too high?
Seshasayee Paper & Boards' current Operating Margin % of 2.12% is 87% below median its 10-year median of 16.46. Over the past 10 years, this metric has ranged from a low of 2.98 to a high of 23.95. The Forest Products industry median Operating Margin % is 2.60. Seshasayee Paper & Boards' value of 2.12% is 18.5% below this industry median. Based on the distribution chart, Seshasayee Paper & Boards ranks #132 out of 283 companies in the Forest Products industry, which is above the industry midpoint. Overall, Seshasayee Paper & Boards has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Seshasayee Paper & Boards' Operating Margin % compare to competitors?
According to the Forest Products industry distribution chart, Seshasayee Paper & Boards ranks #132 out of 283 companies for Operating Margin %. This puts Seshasayee Paper & Boards in the upper half of its industry. The industry median Operating Margin % is 2.60. Seshasayee Paper & Boards' value of 2.12% is 18.5% below this benchmark. Historically, Seshasayee Paper & Boards' own Operating Margin % has ranged from 2.98 to 23.95 over the past decade. While the company's 10-year median is 16.46 vs. the industry median of 2.60, Seshasayee Paper & Boards 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 Forest Products company?
The median Operating Margin % among Forest Products companies is 2.60, 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. Seshasayee Paper & Boards's current Operating Margin % of 2.12% is 18.5% 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 Seshasayee Paper & Boards and its competitors. For the Forest Products industry, the median Operating Margin % is 2.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Seshasayee Paper & Boards's current Operating Margin % is 2.12%, which is 87% below median its own 10-year median of 16.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Seshasayee Paper & Boards stock overvalued right now?
Based on GuruFocus' analysis, Seshasayee Paper & Boards (BOM:502450) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹272.47, compared to a current price of ₹223.75 — trading 17.9% below its estimated fair value. The current Operating Margin % is 2.12%, which is 87% below median its 10-year median of 16.46 and 18.5% below the Forest Products industry median of 2.60. Seshasayee Paper & Boards' 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Seshasayee Paper & Boards (BOM:502450), the current Operating Margin % is 2.12% 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 Seshasayee Paper & Boards (BOM:502450) Overvalued in 2026?
Based on GuruFocus' analysis, Seshasayee Paper & Boards stock appears to be undervalued.
The current stock price of ₹223.75 is trading 17.9% below its estimated GF Value™ of ₹272.47.
GuruFocus considers Seshasayee Paper & Boards to be Modestly Undervalued.
Key valuation signals for BOM:502450:
Operating Margin %: 2.12% (87% below median its 10-year median of 16.46)
GF Value™: ₹272.47 vs. price of ₹223.75 (17.9% below fair value)
Industry Position: 18.5% below the Forest Products median (#132 of 283)
No single metric tells the full story. See the BOM:502450 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Seshasayee Paper & Boards Ltd is engaged in the manufacture of paper and paper boards at its unit at Erode and Tirunelveli. The four key Paper and Board segments are: Newsprint, and Printing and Writing Papers, Paper Boards for packaging applications, Tissue Papers & other Speciality Papers. Packaging continues to be fastest growing segment globally The company derives maximum revenue from the sale of paper products in India.
72GF Score
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