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.
Sonal Adhesives Operating Margin % Related Terms
Sonal Adhesives Operating Margin % Historical Data
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The historical data trend for Sonal Adhesives'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:526901 vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Sonal Adhesives'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.
Sonal Adhesives Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sonal Adhesives's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sonal Adhesives'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.
Sonal Adhesives'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.
Sonal Adhesives (BOM:526901) has a Operating Margin % of 1.27% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Sonal Adhesives and its competitors. According to the industry distribution chart, Sonal Adhesives ranks #1168 out of 1580 companies in the Chemicals industry, placing it in the top 73.9%.
Is Sonal Adhesives' Operating Margin % too high?
Sonal Adhesives' current Operating Margin % is 1.27%. The Chemicals industry median Operating Margin % is 6.02. Sonal Adhesives' value of 1.27% is 78.9% below this industry median. Based on the distribution chart, Sonal Adhesives ranks #1168 out of 1580 companies in the Chemicals industry, which is below the industry midpoint. Overall, Sonal Adhesives has a GF Score™ of 60/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sonal Adhesives' Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Sonal Adhesives ranks #1168 out of 1580 companies for Operating Margin %. This places Sonal Adhesives in the lower half of its industry. The industry median Operating Margin % is 6.02. Sonal Adhesives' value of 1.27% is 78.9% below this benchmark. 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.02, based on 1,580 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. Sonal Adhesives's current Operating Margin % of 1.27% is 78.9% 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 Sonal Adhesives and its competitors. For the Chemicals industry, the median Operating Margin % is 6.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sonal Adhesives's current Operating Margin % is 1.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sonal Adhesives stock overvalued right now?
Based on GuruFocus' analysis, Sonal Adhesives (BOM:526901) is currently considered Possible Value Trap. The stock's GF Value™ is ₹97.61, compared to a current price of ₹47.64 — trading 51.2% below its estimated fair value. The current Operating Margin % is 1.27% and 78.9% below the Chemicals industry median of 6.02. Sonal Adhesives' overall GF Score™ is 60/100 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 Sonal Adhesives (BOM:526901), the current Operating Margin % is 1.27% 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 Sonal Adhesives (BOM:526901) Overvalued in 2026?
Based on GuruFocus' analysis, Sonal Adhesives stock appears to be undervalued.
The current stock price of ₹47.64 is trading 51.2% below its estimated GF Value™ of ₹97.61.
GuruFocus considers Sonal Adhesives to be Possible Value Trap.
Key valuation signals for BOM:526901:
Operating Margin %: 1.27%
GF Value™: ₹97.61 vs. price of ₹47.64 (51.2% below fair value)
Industry Position: 78.9% below the Chemicals median (#1168 of 1580)
No single metric tells the full story. See the BOM:526901 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sonal Adhesives Ltd is an India-based manufacturer engaged in the production of adhesive tapes, emulsions, and plastic ropes. The company operates in a single segment: packing products. Its products are marketed under the brand names SONAL and ADICRYL. The company is a manufacturer and exporter of BOPP self-adhesive tapes and specialty adhesives and emulsions. It exports its products globally, including to countries such as Spain, Nigeria, Germany, Middle Eastern countries, and across the African continent, and majority of its revenue comes from India.
60GF Score
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