Dharani FinanceBOM:511451 +4.99%75 Operating Margin % is 39.46% as of Mar. 2026, which is 82% above its 10-year median of 21.63. GuruFocus rates BOM:511451 with a GF Score™ of 75/100 and a GF Value™ of ₹16.27 (Fairly Valued). The stock has 5 warning signs investors should review. Among 412 Credit Services companies, Dharani Finance ranks better than 88.59% on this metric.
The historical rank and industry rank for Dharani Finance's Operating Margin % or its related term are showing as below:
BOM:511451'
s Operating Margin % Range Over the Past 10 Years
Min: -19.06 Med: 21.63 Max: 59.58
Current: 59.58
BOM:511451's Operating Margin % is ranked better than 88.59% of 412
companies
in the Credit Services industry
Industry Median: 17.325
vs BOM:511451: 59.58
Dharani Finance'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.
Dharani Finance Operating Margin % Related Terms
Dharani Finance Operating Margin % Historical Data
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The historical data trend for Dharani Finance'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:511451 vs V, MA, AXP: Operating Margin % Comparison
For the Credit Services subindustry, Dharani Finance'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.
Dharani Finance Operating Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Dharani Finance's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Dharani Finance'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.
Dharani Finance'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.
Dharani Finance (BOM:511451) has a Operating Margin % of 39.46% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Dharani Finance and its competitors. This is 82% above median its historical median of 21.63. According to the industry distribution chart, Dharani Finance ranks #47 out of 412 companies in the Credit Services industry, placing it in the top 11.4%.
Is Dharani Finance's Operating Margin % too high?
Dharani Finance's current Operating Margin % of 39.46% is 82% above median its 10-year median of 21.63. The Credit Services industry median Operating Margin % is 17.33. Dharani Finance's value of 39.46% is 127.8% above this industry median. Based on the distribution chart, Dharani Finance ranks #47 out of 412 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, Dharani Finance has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Dharani Finance's Operating Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Dharani Finance ranks #47 out of 412 companies for Operating Margin %. This places Dharani Finance in the top 11% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 17.33. Dharani Finance's value of 39.46% is 127.8% above this benchmark. While the company's 10-year median is 21.63 vs. the industry median of 17.33, Dharani Finance 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 Credit Services company?
The median Operating Margin % among Credit Services companies is 17.33, based on 412 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. Dharani Finance's current Operating Margin % of 39.46% is 127.8% 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 Dharani Finance and its competitors. For the Credit Services industry, the median Operating Margin % is 17.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dharani Finance's current Operating Margin % is 39.46%, which is 82% above median its own 10-year median of 21.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dharani Finance stock overvalued right now?
Based on GuruFocus' analysis, Dharani Finance (BOM:511451) is currently considered Fairly Valued. The stock's GF Value™ is ₹16.27, compared to a current price of ₹14.73 — trading 9.5% below its estimated fair value. The current Operating Margin % is 39.46%, which is 82% above median its 10-year median of 21.63 and 127.8% above the Credit Services industry median of 17.33. Dharani Finance's overall GF Score™ is 75/100 with 5 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 Dharani Finance (BOM:511451), the current Operating Margin % is 39.46% 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 Dharani Finance (BOM:511451) Overvalued in 2026?
Based on GuruFocus' analysis, Dharani Finance stock appears to be undervalued.
The current stock price of ₹14.73 is trading 9.5% below its estimated GF Value™ of ₹16.27.
GuruFocus considers Dharani Finance to be Fairly Valued.
Key valuation signals for BOM:511451:
Operating Margin %: 39.46% (82% above median its 10-year median of 21.63)
GF Value™: ₹16.27 vs. price of ₹14.73 (9.5% below fair value)
Industry Position: 127.8% above the Credit Services median (#47 of 412)
No single metric tells the full story. See the BOM:511451 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dharani Finance Ltd is an Indian non-banking financial company (NBFC) engaged in providing financial services such as hire purchase finance, lease finance, and bill discounting. Dharani Finance caters to industrial and commercial enterprises. Company operates in single segment of NBFC activities. The company is also licensed by the Reserve Bank of India for foreign exchange money changing operations and has diversified activities including investment planning, tax consulting, and travel agency services. Majority of its revenue is generated from its core financial services business in hire purchase and leasing.
75GF Score
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