Sarda Energy & MineralsBOM:504614 +1.26%85 Operating Margin % is 20.90% as of Mar. 2026, which is 10% above its 10-year median of 18.93. GuruFocus rates BOM:504614 with a GF Score™ of 85/100 and a GF Value™ of ₹527.29 (Fairly Valued). Among 612 Steel companies, Sarda Energy & Minerals ranks better than 96.57% on this metric.
Sarda Energy & Minerals (BOM:504614) 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.
Sarda Energy & Minerals Operating Margin % Related Terms
Sarda Energy & Minerals Operating Margin % Historical Data
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The historical data trend for Sarda Energy & Minerals'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:504614 vs NUE, STLD, RS: Operating Margin % Comparison
For the Steel subindustry, Sarda Energy & Minerals'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.
Sarda Energy & Minerals Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Sarda Energy & Minerals's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sarda Energy & Minerals's Operating Margin % falls into.
Sarda Energy & Minerals 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.
Sarda Energy & Minerals'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.
Sarda Energy & Minerals (BOM:504614) has a Operating Margin % of 20.90% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Sarda Energy & Minerals and its competitors. This is 10% above median its historical median of 18.93. Over the past decade, Sarda Energy & Minerals' Operating Margin % has ranged from 9.97 to 30.80. According to the industry distribution chart, Sarda Energy & Minerals ranks #21 out of 612 companies in the Steel industry, placing it in the top 3.4%.
Is Sarda Energy & Minerals' Operating Margin % too high?
Sarda Energy & Minerals' current Operating Margin % of 20.90% is 10% above median its 10-year median of 18.93. Over the past 10 years, this metric has ranged from a low of 9.97 to a high of 30.80. The Steel industry median Operating Margin % is 2.99. Sarda Energy & Minerals' value of 20.90% is 599% above this industry median. Based on the distribution chart, Sarda Energy & Minerals ranks #21 out of 612 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Sarda Energy & Minerals has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sarda Energy & Minerals' Operating Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Sarda Energy & Minerals ranks #21 out of 612 companies for Operating Margin %. This places Sarda Energy & Minerals in the top 3% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 2.99. Sarda Energy & Minerals' value of 20.90% is 599% above this benchmark. Historically, Sarda Energy & Minerals' own Operating Margin % has ranged from 9.97 to 30.80 over the past decade. While the company's 10-year median is 18.93 vs. the industry median of 2.99, Sarda Energy & Minerals 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 Steel company?
The median Operating Margin % among Steel companies is 2.99, based on 612 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. Sarda Energy & Minerals's current Operating Margin % of 20.90% is 599% 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 Sarda Energy & Minerals and its competitors. For the Steel industry, the median Operating Margin % is 2.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sarda Energy & Minerals's current Operating Margin % is 20.90%, which is 10% above median its own 10-year median of 18.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sarda Energy & Minerals stock overvalued right now?
Based on GuruFocus' analysis, Sarda Energy & Minerals (BOM:504614) is currently considered Fairly Valued. The stock's GF Value™ is ₹527.29, compared to a current price of ₹520.90 — trading 1.2% below its estimated fair value. The current Operating Margin % is 20.90%, which is 10% above median its 10-year median of 18.93 and 599% above the Steel industry median of 2.99. Sarda Energy & Minerals' overall GF Score™ is 85/100. 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 Sarda Energy & Minerals (BOM:504614), the current Operating Margin % is 20.90% 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 Sarda Energy & Minerals (BOM:504614) Overvalued in 2026?
Based on GuruFocus' analysis, Sarda Energy & Minerals stock appears to be undervalued.
The current stock price of ₹520.90 is trading 1.2% below its estimated GF Value™ of ₹527.29.
GuruFocus considers Sarda Energy & Minerals to be Fairly Valued.
Key valuation signals for BOM:504614:
Operating Margin %: 20.90% (10% above median its 10-year median of 18.93)
GF Value™: ₹527.29 vs. price of ₹520.90 (1.2% below fair value)
Industry Position: 599% above the Steel median (#21 of 612)
No single metric tells the full story. See the BOM:504614 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sarda Energy & Minerals Ltd is an Indian based company has integrated steel manufacturing facility starting from iron ore mining to the finished steel in the form of wire rod and H.B. wire and also through its subsidiary engaged in the business of generation of power. It is also provides manufacturer and exporter of Ferro Alloys and promoted hydropower projects through SPVs. The group operates in the business segment of Steel, Ferro Alloys, and Power. It generates a majority of its revenue from the Steel segment. The company's products include Pellets, Sponge Iron (DRI), Steel Billets & Wire Rods, Ferro Alloys, Power, and Eco-Bricks Mining.
85GF Score
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