NHC FoodsBOM:517554 -4.31%68 Operating Margin % is 3.44% as of Mar. 2026, which is 32% above its 10-year median of 2.61. GuruFocus rates BOM:517554 with a GF Score™ of 68/100 and a GF Value™ of ₹2.74 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,951 Consumer Packaged Goods companies, NHC Foods ranks worse than 62.28% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. NHC Foods's Operating Income for the
three
months ended in Mar. 2026 was ₹89 Mil. NHC Foods's Revenue for the
three
months ended in Mar. 2026 was ₹2,584 Mil. Therefore, NHC Foods's Operating Margin % for the quarter that ended in Mar. 2026 was 3.44%.
Good Sign:
NHC Foods Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for NHC Foods's Operating Margin % or its related term are showing as below:
BOM:517554'
s Operating Margin % Range Over the Past 10 Years
Min: 1.66 Med: 2.61 Max: 3.89
Current: 3.08
BOM:517554's Operating Margin % is ranked worse than 62.28% of 1951
companies
in the Consumer Packaged Goods industry
Industry Median: 5.26
vs BOM:517554: 3.08
NHC Foods's 5-Year Average Operating Margin % Growth Rate was 9.20% per year.
NHC Foods's Operating Income for the
three
months ended in Mar. 2026 was ₹89 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ₹185 Mil.
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.
NHC Foods Operating Margin % Related Terms
NHC Foods Operating Margin % Historical Data
* Premium members only.
The historical data trend for NHC Foods'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:517554 vs KHC, GIS: Operating Margin % Comparison
For the Packaged Foods subindustry, NHC Foods'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.
NHC Foods Operating Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, NHC Foods's Operating Margin % distribution charts can be found below:
* The bar in red indicates where NHC Foods'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.
NHC Foods'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.
NHC Foods (BOM:517554) has a Operating Margin % of 3.44% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on NHC Foods and its competitors. This is 32% above median its historical median of 2.61. Over the past decade, NHC Foods' Operating Margin % has ranged from 1.66 to 3.89. According to the industry distribution chart, NHC Foods ranks #1215 out of 1951 companies in the Consumer Packaged Goods industry, placing it in the top 62.3%.
Is NHC Foods' Operating Margin % too high?
NHC Foods' current Operating Margin % of 3.44% is 32% above median its 10-year median of 2.61. Over the past 10 years, this metric has ranged from a low of 1.66 to a high of 3.89. The Consumer Packaged Goods industry median Operating Margin % is 5.26. NHC Foods' value of 3.44% is 34.6% below this industry median. Based on the distribution chart, NHC Foods ranks #1215 out of 1951 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. Overall, NHC Foods has a GF Score™ of 68/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does NHC Foods' Operating Margin % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, NHC Foods ranks #1215 out of 1951 companies for Operating Margin %. This places NHC Foods in the lower half of its industry. The industry median Operating Margin % is 5.26. NHC Foods' value of 3.44% is 34.6% below this benchmark. Historically, NHC Foods' own Operating Margin % has ranged from 1.66 to 3.89 over the past decade. While the company's 10-year median is 2.61 vs. the industry median of 5.26, NHC Foods 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 Consumer Packaged Goods company?
The median Operating Margin % among Consumer Packaged Goods companies is 5.26, based on 1,951 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. NHC Foods's current Operating Margin % of 3.44% is 34.6% 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 NHC Foods and its competitors. For the Consumer Packaged Goods industry, the median Operating Margin % is 5.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NHC Foods's current Operating Margin % is 3.44%, which is 32% above median its own 10-year median of 2.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NHC Foods stock overvalued right now?
Based on GuruFocus' analysis, NHC Foods (BOM:517554) is currently considered Possible Value Trap. The stock's GF Value™ is ₹2.74, compared to a current price of ₹1.11 — trading 59.5% below its estimated fair value. The current Operating Margin % is 3.44%, which is 32% above median its 10-year median of 2.61 and 34.6% below the Consumer Packaged Goods industry median of 5.26. NHC Foods' overall GF Score™ is 68/100 with 6 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 NHC Foods (BOM:517554), the current Operating Margin % is 3.44% 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 NHC Foods (BOM:517554) Overvalued in 2026?
Based on GuruFocus' analysis, NHC Foods stock appears to be undervalued.
The current stock price of ₹1.11 is trading 59.5% below its estimated GF Value™ of ₹2.74.
GuruFocus considers NHC Foods to be Possible Value Trap.
Key valuation signals for BOM:517554:
Operating Margin %: 3.44% (32% above median its 10-year median of 2.61)
GF Value™: ₹2.74 vs. price of ₹1.11 (59.5% below fair value)
Industry Position: 34.6% below the Consumer Packaged Goods median (#1215 of 1951)
No single metric tells the full story. See the BOM:517554 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NHC Foods Ltd is engaged in the export of whole and ground spices, lentils, pulses, grains, oilseeds, and various other agri-products and assorted food products. It operates both in Indian and international markets. It generates the majority of its revenue from outside India.
68GF Score
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