Aarey Drugs & PharmaceuticalsBOM:524412 +2.00%60 Operating Margin % is 1.84% as of Mar. 2026, which is 86% above its 10-year median of 0.99. GuruFocus rates BOM:524412 with a GF Score™ of 60/100 and a GF Value™ of ₹58.27 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 952 Drug Manufacturers companies, Aarey Drugs & Pharmaceuticals ranks worse than 68.59% on this metric.
Aarey Drugs & Pharmaceuticals Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -18.7%.
The historical rank and industry rank for Aarey Drugs & Pharmaceuticals's Operating Margin % or its related term are showing as below:
BOM:524412'
s Operating Margin % Range Over the Past 10 Years
Min: 0.2 Med: 0.99 Max: 2.28
Current: 0.92
BOM:524412's Operating Margin % is ranked worse than 68.59% of 952
companies
in the Drug Manufacturers industry
Industry Median: 7.58
vs BOM:524412: 0.92
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.
Aarey Drugs & Pharmaceuticals Operating Margin % Related Terms
Aarey Drugs & Pharmaceuticals Operating Margin % Historical Data
* 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.
For the Drug Manufacturers - Specialty & Generic subindustry, Aarey Drugs & Pharmaceuticals'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.
Aarey Drugs & Pharmaceuticals Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Aarey Drugs & Pharmaceuticals's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Aarey Drugs & Pharmaceuticals'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.
* 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.
Aarey Drugs & Pharmaceuticals (BOM:524412) has a Operating Margin % of 1.84% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Aarey Drugs & Pharmaceuticals and its competitors. This is 86% above median its historical median of 0.99. Over the past decade, Aarey Drugs & Pharmaceuticals' Operating Margin % has ranged from 0.20 to 2.28. According to the industry distribution chart, Aarey Drugs & Pharmaceuticals ranks #653 out of 952 companies in the Drug Manufacturers industry, placing it in the top 68.6%.
Is Aarey Drugs & Pharmaceuticals' Operating Margin % too high?
Aarey Drugs & Pharmaceuticals' current Operating Margin % of 1.84% is 86% above median its 10-year median of 0.99. Over the past 10 years, this metric has ranged from a low of 0.20 to a high of 2.28. The Drug Manufacturers industry median Operating Margin % is 7.58. Aarey Drugs & Pharmaceuticals' value of 1.84% is 75.7% below this industry median. Based on the distribution chart, Aarey Drugs & Pharmaceuticals ranks #653 out of 952 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Aarey Drugs & Pharmaceuticals has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Aarey Drugs & Pharmaceuticals' Operating Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Aarey Drugs & Pharmaceuticals ranks #653 out of 952 companies for Operating Margin %. This places Aarey Drugs & Pharmaceuticals in the lower half of its industry. The industry median Operating Margin % is 7.58. Aarey Drugs & Pharmaceuticals' value of 1.84% is 75.7% below this benchmark. Historically, Aarey Drugs & Pharmaceuticals' own Operating Margin % has ranged from 0.20 to 2.28 over the past decade. While the company's 10-year median is 0.99 vs. the industry median of 7.58, Aarey Drugs & Pharmaceuticals 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.58, based on 952 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. Aarey Drugs & Pharmaceuticals's current Operating Margin % of 1.84% is 75.7% 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 Aarey Drugs & Pharmaceuticals and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aarey Drugs & Pharmaceuticals's current Operating Margin % is 1.84%, which is 86% above median its own 10-year median of 0.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aarey Drugs & Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Aarey Drugs & Pharmaceuticals (BOM:524412) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹58.27, compared to a current price of ₹91.87 — trading 57.7% above its estimated fair value. The current Operating Margin % is 1.84%, which is 86% above median its 10-year median of 0.99 and 75.7% below the Drug Manufacturers industry median of 7.58. Aarey Drugs & Pharmaceuticals' overall GF Score™ is 60/100 with 4 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 Aarey Drugs & Pharmaceuticals (BOM:524412), the current Operating Margin % is 1.84% 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 Aarey Drugs & Pharmaceuticals (BOM:524412) Overvalued in 2026?
Based on GuruFocus' analysis, Aarey Drugs & Pharmaceuticals stock appears to be overvalued.
The current stock price of ₹91.87 is trading 57.7% above its estimated GF Value™ of ₹58.27.
GuruFocus considers Aarey Drugs & Pharmaceuticals to be Significantly Overvalued.
Key valuation signals for BOM:524412:
Operating Margin %: 1.84% (86% above median its 10-year median of 0.99)
GF Value™: ₹58.27 vs. price of ₹91.87 (57.7% above fair value)
Industry Position: 75.7% below the Drug Manufacturers median (#653 of 952)
No single metric tells the full story. See the BOM:524412 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aarey Drugs & Pharmaceuticals Business Description
Aarey Drugs & Pharmaceuticals Ltd is engaged in bulk drug manufacturing and offers products for industrial applications. The company manufactures active pharmaceutical ingredients, intermediates, and specialty chemicals. It is also involved in the trading of industrial solvents and chemicals. The products offered by the company include N-Methyl urea, Dimethyl urea, Mefenamic acid, Metformin, Doxaphylline, and BMD among others. The company principally carries out its business operations in India.
60GF Score
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