Shanthi GearsBOM:522034 -0.90%85 Operating Margin % is 14.20% as of Mar. 2026, which is 1% below its 10-year median of 14.32. GuruFocus rates BOM:522034 with a GF Score™ of 85/100 and a GF Value™ of ₹500.23 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 3,032 Industrial Products companies, Shanthi Gears ranks better than 86.77% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Shanthi Gears's Operating Income for the
three
months ended in Mar. 2026 was ₹192 Mil. Shanthi Gears's Revenue for the
three
months ended in Mar. 2026 was ₹1,351 Mil. Therefore, Shanthi Gears's Operating Margin % for the quarter that ended in Mar. 2026 was 14.20%.
Good Sign:
Shanthi Gears Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Shanthi Gears's Operating Margin % or its related term are showing as below:
BOM:522034'
s Operating Margin % Range Over the Past 10 Years
Min: 8.92 Med: 14.32 Max: 19.09
Current: 16.94
BOM:522034's Operating Margin % is ranked better than 86.77% of 3032
companies
in the Industrial Products industry
Industry Median: 6.535
vs BOM:522034: 16.94
Shanthi Gears's 5-Year Average Operating Margin % Growth Rate was 11.40% 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.
Shanthi Gears Operating Margin % Related Terms
Shanthi Gears Operating Margin % Historical Data
* Premium members only.
The historical data trend for Shanthi Gears'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:522034 vs GEV, ETN, PH: Operating Margin % Comparison
For the Specialty Industrial Machinery subindustry, Shanthi Gears'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.
Shanthi Gears Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Shanthi Gears's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Shanthi Gears'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.
Shanthi Gears'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.
Shanthi Gears (BOM:522034) has a Operating Margin % of 14.20% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Shanthi Gears and its competitors. This is near median its historical median of 14.32. Over the past decade, Shanthi Gears' Operating Margin % has ranged from 8.92 to 19.09. According to the industry distribution chart, Shanthi Gears ranks #401 out of 3032 companies in the Industrial Products industry, placing it in the top 13.2%.
Is Shanthi Gears' Operating Margin % too high?
Shanthi Gears' current Operating Margin % of 14.20% is near median its 10-year median of 14.32. Over the past 10 years, this metric has ranged from a low of 8.92 to a high of 19.09. The Industrial Products industry median Operating Margin % is 6.54. Shanthi Gears' value of 14.20% is 117.3% above this industry median. Based on the distribution chart, Shanthi Gears ranks #401 out of 3032 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Shanthi Gears has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shanthi Gears' Operating Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Shanthi Gears ranks #401 out of 3032 companies for Operating Margin %. This places Shanthi Gears in the top 13% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.54. Shanthi Gears' value of 14.20% is 117.3% above this benchmark. Historically, Shanthi Gears' own Operating Margin % has ranged from 8.92 to 19.09 over the past decade. While the company's 10-year median is 14.32 vs. the industry median of 6.54, Shanthi Gears 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 an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.54, based on 3,032 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. Shanthi Gears's current Operating Margin % of 14.20% is 117.3% 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 Shanthi Gears and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanthi Gears's current Operating Margin % is 14.20%, which is near median its own 10-year median of 14.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanthi Gears stock overvalued right now?
Based on GuruFocus' analysis, Shanthi Gears (BOM:522034) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹500.23, compared to a current price of ₹442.10 — trading 11.6% below its estimated fair value. The current Operating Margin % is 14.20%, which is near median its 10-year median of 14.32 and 117.3% above the Industrial Products industry median of 6.54. Shanthi Gears' overall GF Score™ is 85/100 with 2 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 Shanthi Gears (BOM:522034), the current Operating Margin % is 14.20% 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 Shanthi Gears (BOM:522034) Overvalued in 2026?
Based on GuruFocus' analysis, Shanthi Gears stock appears to be undervalued.
The current stock price of ₹442.10 is trading 11.6% below its estimated GF Value™ of ₹500.23.
GuruFocus considers Shanthi Gears to be Modestly Undervalued.
Key valuation signals for BOM:522034:
Operating Margin %: 14.20% (near median its 10-year median of 14.32)
GF Value™: ₹500.23 vs. price of ₹442.10 (11.6% below fair value)
Industry Position: 117.3% above the Industrial Products median (#401 of 3032)
No single metric tells the full story. See the BOM:522034 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanthi Gears Ltd is an India-based company, that engages in the design, manufacture, supply, and servicing of gears and gearboxes. It offers standard worm gearboxes; helical and bevel helical gearboxes; geared motors; cooling tower, extruder, and rolling mill gearboxes; textile gears, and gear assemblies among others. Geographically the company generates maximum revenue within India and the rest from its customers in America, Europe, and other regions.
85GF Score
Get the complete analysis for BOM:522034
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