V B Desai Financial Services (BOM:511110) 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.
V B Desai Financial Services Operating Margin % Related Terms
V B Desai Financial Services 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.
V B Desai Financial Services Operating Margin % Chart
BOM:511110 vs MS, GS, SCHW: Operating Margin % Comparison
For the Capital Markets subindustry, V B Desai Financial Services'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.
V B Desai Financial Services Operating Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, V B Desai Financial Services's Operating Margin % distribution charts can be found below:
* The bar in red indicates where V B Desai Financial Services's Operating Margin % falls into.
V B Desai Financial Services 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.
* 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.
V B Desai Financial Services (BOM:511110) has a Operating Margin % of 0.99% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on V B Desai Financial Services and its competitors. This is 90% below median its historical median of 9.43. According to the industry distribution chart, V B Desai Financial Services ranks #379 out of 664 companies in the Capital Markets industry, placing it in the top 57.1%.
Is V B Desai Financial Services' Operating Margin % too high?
V B Desai Financial Services' current Operating Margin % of 0.99% is 90% below median its 10-year median of 9.43. The Capital Markets industry median Operating Margin % is 7.19. V B Desai Financial Services' value of 0.99% is 86.2% below this industry median. Based on the distribution chart, V B Desai Financial Services ranks #379 out of 664 companies in the Capital Markets industry, which is below the industry midpoint. Overall, V B Desai Financial Services has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does V B Desai Financial Services' Operating Margin % compare to MS and GS?
According to the Capital Markets industry distribution chart, V B Desai Financial Services ranks #379 out of 664 companies for Operating Margin %. This places V B Desai Financial Services in the lower half of its industry. The industry median Operating Margin % is 7.19. V B Desai Financial Services' value of 0.99% is 86.2% below this benchmark. While the company's 10-year median is 9.43 vs. the industry median of 7.19, V B Desai Financial Services 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 Capital Markets company?
The median Operating Margin % among Capital Markets companies is 7.19, based on 664 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. V B Desai Financial Services's current Operating Margin % of 0.99% is 86.2% 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 V B Desai Financial Services and its competitors. For the Capital Markets industry, the median Operating Margin % is 7.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. V B Desai Financial Services's current Operating Margin % is 0.99%, which is 90% below median its own 10-year median of 9.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is V B Desai Financial Services stock overvalued right now?
Based on GuruFocus' analysis, V B Desai Financial Services (BOM:511110) is currently considered Fairly Valued. The stock's GF Value™ is ₹19.05, compared to a current price of ₹17.50 — trading 8.1% below its estimated fair value. The current Operating Margin % is 0.99%, which is 90% below median its 10-year median of 9.43 and 86.2% below the Capital Markets industry median of 7.19. V B Desai Financial Services' overall GF Score™ is 69/100 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 V B Desai Financial Services (BOM:511110), the current Operating Margin % is 0.99% 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 V B Desai Financial Services (BOM:511110) Overvalued in 2026?
Based on GuruFocus' analysis, V B Desai Financial Services stock appears to be undervalued.
The current stock price of ₹17.50 is trading 8.1% below its estimated GF Value™ of ₹19.05.
GuruFocus considers V B Desai Financial Services to be Fairly Valued.
Key valuation signals for BOM:511110:
Operating Margin %: 0.99% (90% below median its 10-year median of 9.43)
GF Value™: ₹19.05 vs. price of ₹17.50 (8.1% below fair value)
Industry Position: 86.2% below the Capital Markets median (#379 of 664)
No single metric tells the full story. See the BOM:511110 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
V B Desai Financial Services Ltd is an Indian company providing merchant banking services. The company is engaged in offering financial and advisory services. It provides services like Share Valuation, (Employee Stock Option Plan) ESOP Valuation, ESOP Advisory, merger and acquisition, to act as Manager in Buyback of shares and Acquisition, Takeover of Listed Companies and Initial Public Offerings, etc. The Company has one segment which is Merchant Banking and financial services.
69GF 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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