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Fermenta BiotechBOM:506414 +7.25%65 Operating Margin % is 12.25% as of Mar. 2026, which is 28% below its 10-year median of 16.91. GuruFocus rates BOM:506414 with a GF Score™ of 65/100 and a GF Value™ of ₹321.75 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 961 Drug Manufacturers companies, Fermenta Biotech ranks better than 69.82% on this metric.
The historical rank and industry rank for Fermenta Biotech's Operating Margin % or its related term are showing as below:
BOM:506414'
s Operating Margin % Range Over the Past 10 Years
Min: -0.29 Med: 16.91 Max: 36.72
Current: 14.87
BOM:506414's Operating Margin % is ranked better than 69.82% of 961
companies
in the Drug Manufacturers industry
Industry Median: 7.59
vs BOM:506414: 14.87
Fermenta Biotech's 5-Year Average Operating Margin % Growth Rate was 0.00% 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.
Fermenta Biotech Operating Margin % Related Terms
Fermenta Biotech Operating Margin % Historical Data
* Premium members only.
The historical data trend for Fermenta Biotech'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.
For the Drug Manufacturers - Specialty & Generic subindustry, Fermenta Biotech'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.
Fermenta Biotech Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Fermenta Biotech's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Fermenta Biotech'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.
Fermenta Biotech'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.
Fermenta Biotech (BOM:506414) has a Operating Margin % of 12.25% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Fermenta Biotech and its competitors. This is 28% below median its historical median of 16.91. According to the industry distribution chart, Fermenta Biotech ranks #290 out of 961 companies in the Drug Manufacturers industry, placing it in the top 30.2%.
Is Fermenta Biotech's Operating Margin % too high?
Fermenta Biotech's current Operating Margin % of 12.25% is 28% below median its 10-year median of 16.91. The Drug Manufacturers industry median Operating Margin % is 7.59. Fermenta Biotech's value of 12.25% is 61.4% above this industry median. Based on the distribution chart, Fermenta Biotech ranks #290 out of 961 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Fermenta Biotech has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fermenta Biotech's Operating Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Fermenta Biotech ranks #290 out of 961 companies for Operating Margin %. This puts Fermenta Biotech in the upper half of its industry. The industry median Operating Margin % is 7.59. Fermenta Biotech's value of 12.25% is 61.4% above this benchmark. While the company's 10-year median is 16.91 vs. the industry median of 7.59, Fermenta Biotech 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.59, based on 961 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. Fermenta Biotech's current Operating Margin % of 12.25% is 61.4% 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 Fermenta Biotech and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fermenta Biotech's current Operating Margin % is 12.25%, which is 28% below median its own 10-year median of 16.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fermenta Biotech stock overvalued right now?
Based on GuruFocus' analysis, Fermenta Biotech (BOM:506414) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹321.75, compared to a current price of ₹499.30 — trading 55.2% above its estimated fair value. The current Operating Margin % is 12.25%, which is 28% below median its 10-year median of 16.91 and 61.4% above the Drug Manufacturers industry median of 7.59. Fermenta Biotech's overall GF Score™ is 65/100 with 4 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 Fermenta Biotech (BOM:506414), the current Operating Margin % is 12.25% 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 Fermenta Biotech (BOM:506414) Overvalued in 2026?
Based on GuruFocus' analysis, Fermenta Biotech stock appears to be overvalued.
The current stock price of ₹499.30 is trading 55.2% above its estimated GF Value™ of ₹321.75.
GuruFocus considers Fermenta Biotech to be Significantly Overvalued.
Key valuation signals for BOM:506414:
Operating Margin %: 12.25% (28% below median its 10-year median of 16.91)
GF Value™: ₹321.75 vs. price of ₹499.30 (55.2% above fair value)
Industry Position: 61.4% above the Drug Manufacturers median (#290 of 961)
No single metric tells the full story. See the BOM:506414 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fermenta Biotech Ltd is engaged in the business of manufacturing and marketing chemicals, bulk drugs, enzymes, pharmaceutical formulations, and environmental solution products and renting and selling properties. It is a manufacturer and supplier of Vitamin D and also supplies Penicillin G Amidase, CAL B Lipase, Polymer Supports, and enzyme technologies. The company operates in two segments namely Property and Bulk Drugs/Chemicals. The majority of the revenue comes from the Bulk Drug/Chemicals segment. Geographically, it caters to both domestic and international markets and generates maximum revenue from the Indian market.
65GF Score
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