Benares HotelsBOM:509438 -0.95%82 Operating Margin % is 40.10% as of Mar. 2026, which is 84% above its 10-year median of 21.80. GuruFocus rates BOM:509438 with a GF Score™ of 82/100 and a GF Value™ of ₹10,012.91 (Fairly Valued). The stock has 1 warning sign investors should review. Among 843 Travel & Leisure companies, Benares Hotels ranks better than 96.44% on this metric.
The historical rank and industry rank for Benares Hotels's Operating Margin % or its related term are showing as below:
BOM:509438'
s Operating Margin % Range Over the Past 10 Years
Min: -26.99 Med: 21.8 Max: 39.34
Current: 37.96
BOM:509438's Operating Margin % is ranked better than 96.44% of 843
companies
in the Travel & Leisure industry
Industry Median: 8.15
vs BOM:509438: 37.96
Benares Hotels'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.
Benares Hotels Operating Margin % Related Terms
Benares Hotels Operating Margin % Historical Data
* Premium members only.
The historical data trend for Benares Hotels'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:509438 vs MAR, HLT, H: Operating Margin % Comparison
For the Lodging subindustry, Benares Hotels'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.
Benares Hotels Operating Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Benares Hotels's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Benares Hotels'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.
Benares Hotels'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.
Benares Hotels (BOM:509438) has a Operating Margin % of 40.10% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Benares Hotels and its competitors. This is 84% above median its historical median of 21.80. According to the industry distribution chart, Benares Hotels ranks #30 out of 843 companies in the Travel & Leisure industry, placing it in the top 3.6%.
Is Benares Hotels' Operating Margin % too high?
Benares Hotels' current Operating Margin % of 40.10% is 84% above median its 10-year median of 21.80. The Travel & Leisure industry median Operating Margin % is 8.15. Benares Hotels' value of 40.10% is 392% above this industry median. Based on the distribution chart, Benares Hotels ranks #30 out of 843 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Benares Hotels has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Benares Hotels' Operating Margin % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Benares Hotels ranks #30 out of 843 companies for Operating Margin %. This places Benares Hotels in the top 4% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 8.15. Benares Hotels' value of 40.10% is 392% above this benchmark. While the company's 10-year median is 21.80 vs. the industry median of 8.15, Benares Hotels 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 Travel & Leisure company?
The median Operating Margin % among Travel & Leisure companies is 8.15, based on 843 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. Benares Hotels's current Operating Margin % of 40.10% is 392% 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 Benares Hotels and its competitors. For the Travel & Leisure industry, the median Operating Margin % is 8.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Benares Hotels's current Operating Margin % is 40.10%, which is 84% above median its own 10-year median of 21.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Benares Hotels stock overvalued right now?
Based on GuruFocus' analysis, Benares Hotels (BOM:509438) is currently considered Fairly Valued. The stock's GF Value™ is ₹10,012.91, compared to a current price of ₹10,334.45 — trading 3.2% above its estimated fair value. The current Operating Margin % is 40.10%, which is 84% above median its 10-year median of 21.80 and 392% above the Travel & Leisure industry median of 8.15. Benares Hotels' overall GF Score™ is 82/100 with 1 warning sign 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 Benares Hotels (BOM:509438), the current Operating Margin % is 40.10% 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 Benares Hotels (BOM:509438) Overvalued in 2026?
Based on GuruFocus' analysis, Benares Hotels stock appears to be overvalued.
The current stock price of ₹10,334.45 is trading 3.2% above its estimated GF Value™ of ₹10,012.91.
GuruFocus considers Benares Hotels to be Fairly Valued.
Key valuation signals for BOM:509438:
Operating Margin %: 40.10% (84% above median its 10-year median of 21.80)
GF Value™: ₹10,012.91 vs. price of ₹10,334.45 (3.2% above fair value)
Industry Position: 392% above the Travel & Leisure median (#30 of 843)
No single metric tells the full story. See the BOM:509438 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Benares Hotels Ltd operates hotels. The company operates hotels including Taj Ganges Hotel and Taj Nadesar Palace in Varanasi. Taj Nadesar Palace Palace in Varanasi and The Gateway Hotel, Gondia in Maharashtra. It has only one business which is Hoteliering.
82GF Score
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