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.
Mahalaxmi Seamless Operating Margin % Related Terms
Mahalaxmi Seamless Operating Margin % Historical Data
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The historical data trend for Mahalaxmi Seamless'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:513460 vs NUE, STLD, RS: Operating Margin % Comparison
For the Steel subindustry, Mahalaxmi Seamless'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.
Mahalaxmi Seamless Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Mahalaxmi Seamless's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Mahalaxmi Seamless'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.
Mahalaxmi Seamless'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.
Mahalaxmi Seamless (BOM:513460) has a Operating Margin % of -61.85% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Mahalaxmi Seamless and its competitors. According to the industry distribution chart, Mahalaxmi Seamless ranks #225 out of 612 companies in the Steel industry, placing it in the top 36.8%.
Is Mahalaxmi Seamless' Operating Margin % too high?
Mahalaxmi Seamless' current Operating Margin % is -61.85%. Based on the distribution chart, Mahalaxmi Seamless ranks #225 out of 612 companies in the Steel industry, which is above the industry midpoint. Overall, Mahalaxmi Seamless has a GF Score™ of 52/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Mahalaxmi Seamless' Operating Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Mahalaxmi Seamless ranks #225 out of 612 companies for Operating Margin %. This puts Mahalaxmi Seamless in the upper half of its industry. The industry median Operating Margin % is 2.99. 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 Steel company?
The median Operating Margin % among Steel companies is 2.99, based on 612 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. 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 Mahalaxmi Seamless and its competitors. For the Steel industry, the median Operating Margin % is 2.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mahalaxmi Seamless's current Operating Margin % is -61.85%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mahalaxmi Seamless stock overvalued right now?
Based on GuruFocus' analysis, Mahalaxmi Seamless (BOM:513460) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹10.07, compared to a current price of ₹8.19 — trading 18.7% below its estimated fair value. The current Operating Margin % is -61.85%. Mahalaxmi Seamless' overall GF Score™ is 52/100 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 Mahalaxmi Seamless (BOM:513460), the current Operating Margin % is -61.85% 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 Mahalaxmi Seamless (BOM:513460) Overvalued in 2026?
Based on GuruFocus' analysis, Mahalaxmi Seamless stock appears to be undervalued.
The current stock price of ₹8.19 is trading 18.7% below its estimated GF Value™ of ₹10.07.
GuruFocus considers Mahalaxmi Seamless to be Modestly Undervalued.
Key valuation signals for BOM:513460:
Operating Margin %: -61.85%
GF Value™: ₹10.07 vs. price of ₹8.19 (18.7% below fair value)
No single metric tells the full story. See the BOM:513460 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mahalaxmi Seamless Ltd manufactures cold-drawn carbon steel seamless tubes and pipes. It specializes in tubes, pipes, hollow profiles, and tube or pipe fittings of cast iron. The company's product portfolio includes heat exchanger tubes, boiler tubes, hydraulic injection tubes, and precision automotive and mechanical tubes. The company has only one reportable segment, i.e, Cold drawn Seamless Pipes and Tubes.
52GF Score
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