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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.
Punjab Chemicals & Crop Protection Operating Margin % Related Terms
Punjab Chemicals & Crop Protection 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, Punjab Chemicals & Crop Protection'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.
Punjab Chemicals & Crop Protection Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Punjab Chemicals & Crop Protection's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Punjab Chemicals & Crop Protection'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.
Punjab Chemicals & Crop Protection (BOM:506618) has a Operating Margin % of 9.64% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Punjab Chemicals & Crop Protection and its competitors. This is near median its historical median of 8.92. Over the past decade, Punjab Chemicals & Crop Protection's Operating Margin % has ranged from 0.90 to 13.52. According to the industry distribution chart, Punjab Chemicals & Crop Protection ranks #586 out of 1579 companies in the Chemicals industry, placing it in the top 37.1%.
Is Punjab Chemicals & Crop Protection's Operating Margin % too high?
Punjab Chemicals & Crop Protection's current Operating Margin % of 9.64% is near median its 10-year median of 8.92. Over the past 10 years, this metric has ranged from a low of 0.90 to a high of 13.52. The Chemicals industry median Operating Margin % is 6.13. Punjab Chemicals & Crop Protection's value of 9.64% is 57.3% above this industry median. Based on the distribution chart, Punjab Chemicals & Crop Protection ranks #586 out of 1579 companies in the Chemicals industry, which is above the industry midpoint. Overall, Punjab Chemicals & Crop Protection has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Punjab Chemicals & Crop Protection's Operating Margin % compare to DOW?
According to the Chemicals industry distribution chart, Punjab Chemicals & Crop Protection ranks #586 out of 1579 companies for Operating Margin %. This puts Punjab Chemicals & Crop Protection in the upper half of its industry. The industry median Operating Margin % is 6.13. Punjab Chemicals & Crop Protection's value of 9.64% is 57.3% above this benchmark. Historically, Punjab Chemicals & Crop Protection's own Operating Margin % has ranged from 0.90 to 13.52 over the past decade. While the company's 10-year median is 8.92 vs. the industry median of 6.13, Punjab Chemicals & Crop Protection 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 6.13, based on 1,579 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. Punjab Chemicals & Crop Protection's current Operating Margin % of 9.64% is 57.3% 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 Punjab Chemicals & Crop Protection and its competitors. For the Chemicals industry, the median Operating Margin % is 6.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Punjab Chemicals & Crop Protection's current Operating Margin % is 9.64%, which is near median its own 10-year median of 8.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Punjab Chemicals & Crop Protection stock overvalued right now?
Based on GuruFocus' analysis, Punjab Chemicals & Crop Protection (BOM:506618) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,257.69, compared to a current price of ₹1,114.50 — trading 11.4% below its estimated fair value. The current Operating Margin % is 9.64%, which is near median its 10-year median of 8.92 and 57.3% above the Chemicals industry median of 6.13. Punjab Chemicals & Crop Protection's overall GF Score™ is 71/100 with 3 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 Punjab Chemicals & Crop Protection (BOM:506618), the current Operating Margin % is 9.64% as of Jun. 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 Punjab Chemicals & Crop Protection (BOM:506618) Overvalued in 2026?
Based on GuruFocus' analysis, Punjab Chemicals & Crop Protection stock appears to be undervalued.
The current stock price of ₹1,114.50 is trading 11.4% below its estimated GF Value™ of ₹1,257.69.
GuruFocus considers Punjab Chemicals & Crop Protection to be Modestly Undervalued.
Key valuation signals for BOM:506618:
Operating Margin %: 9.64% (near median its 10-year median of 8.92)
GF Value™: ₹1,257.69 vs. price of ₹1,114.50 (11.4% below fair value)
Industry Position: 57.3% above the Chemicals median (#586 of 1579)
No single metric tells the full story. See the BOM:506618 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Punjab Chemicals & Crop Protection Ltd is involved in the chemical business. It provides technical and bulk agrochemicals, such as herbicides, insecticides, and fungicides; and pharmaceutical products, including APIs, intermediates, anti-oxidants, and fine chemicals, as well as intermediates for APIs; and industrial chemicals comprising phosphorus derivatives, oxalates, and intermediates. Geographically, the group has a business presence in India, Europe, Japan, Israel, the USA, Latin America, and other countries, of which key revenue is derived from India. The firm operates in a single segment namely Performance Chemicals.
71GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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