Carborundum UniversalBOM:513375 -1.78%90 Operating Margin % is 5.76% as of Mar. 2026, which is 54% below its 10-year median of 12.58. GuruFocus rates BOM:513375 with a GF Score™ of 90/100 and a GF Value™ of ₹1,252.95 (Fairly Valued). The stock has 9 warning signs investors should review. Among 544 Conglomerates companies, Carborundum Universal ranks better than 51.65% on this metric.
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.
Carborundum Universal Operating Margin % Related Terms
Carborundum Universal Operating Margin % Historical Data
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The historical data trend for Carborundum Universal'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:513375 vs HON, MMM: Operating Margin % Comparison
For the Conglomerates subindustry, Carborundum Universal'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.
Carborundum Universal Operating Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Carborundum Universal's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Carborundum Universal'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.
Carborundum Universal'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.
Carborundum Universal (BOM:513375) has a Operating Margin % of 5.76% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Carborundum Universal and its competitors. This is 54% below median its historical median of 12.58. Over the past decade, Carborundum Universal's Operating Margin % has ranged from 6.45 to 14.60. According to the industry distribution chart, Carborundum Universal ranks #263 out of 544 companies in the Conglomerates industry, placing it in the top 48.3%.
Is Carborundum Universal's Operating Margin % too high?
Carborundum Universal's current Operating Margin % of 5.76% is 54% below median its 10-year median of 12.58. Over the past 10 years, this metric has ranged from a low of 6.45 to a high of 14.60. The Conglomerates industry median Operating Margin % is 5.93. Carborundum Universal's value of 5.76% is 2.9% below this industry median. Based on the distribution chart, Carborundum Universal ranks #263 out of 544 companies in the Conglomerates industry, which is above the industry midpoint. Overall, Carborundum Universal has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Carborundum Universal's Operating Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Carborundum Universal ranks #263 out of 544 companies for Operating Margin %. This puts Carborundum Universal in the upper half of its industry. The industry median Operating Margin % is 5.93. Carborundum Universal's value of 5.76% is 2.9% below this benchmark. Historically, Carborundum Universal's own Operating Margin % has ranged from 6.45 to 14.60 over the past decade. While the company's 10-year median is 12.58 vs. the industry median of 5.93, Carborundum Universal 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 Conglomerates company?
The median Operating Margin % among Conglomerates companies is 5.93, based on 544 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. Carborundum Universal's current Operating Margin % of 5.76% is 2.9% 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 Carborundum Universal and its competitors. For the Conglomerates industry, the median Operating Margin % is 5.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Carborundum Universal's current Operating Margin % is 5.76%, which is 54% below median its own 10-year median of 12.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Carborundum Universal stock overvalued right now?
Based on GuruFocus' analysis, Carborundum Universal (BOM:513375) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,252.95, compared to a current price of ₹1,142.10 — trading 8.8% below its estimated fair value. The current Operating Margin % is 5.76%, which is 54% below median its 10-year median of 12.58 and 2.9% below the Conglomerates industry median of 5.93. Carborundum Universal's overall GF Score™ is 90/100 with 9 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 Carborundum Universal (BOM:513375), the current Operating Margin % is 5.76% 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 Carborundum Universal (BOM:513375) Overvalued in 2026?
Based on GuruFocus' analysis, Carborundum Universal stock appears to be undervalued.
The current stock price of ₹1,142.10 is trading 8.8% below its estimated GF Value™ of ₹1,252.95.
GuruFocus considers Carborundum Universal to be Fairly Valued.
Key valuation signals for BOM:513375:
Operating Margin %: 5.76% (54% below median its 10-year median of 12.58)
GF Value™: ₹1,252.95 vs. price of ₹1,142.10 (8.8% below fair value)
Industry Position: 2.9% below the Conglomerates median (#263 of 544)
No single metric tells the full story. See the BOM:513375 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Carborundum Universal Ltd is an investment holding company. Along with its subsidiaries, it mainly provides solutions predominantly for industrial manufacturing needs by developing, manufacturing, and marketing products using the properties of materials known as electrominerals. The company's reportable business segments are; Surface engineering (material removal, cutting, polishing) known as Abrasives; Ceramics; Electrominerals; Power; IT services; and others. Maximum revenue is derived from the Abrasives segment which is comprised of bonded, coated, processed cloth, polymers, power tools, and coolants. The company generates maximum revenue through exports and the rest from its business in India.
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