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.
Gujarat Alkalies & Chemicals Operating Margin % Related Terms
Gujarat Alkalies & Chemicals 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 Chemicals subindustry, Gujarat Alkalies & Chemicals'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.
Gujarat Alkalies & Chemicals Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Gujarat Alkalies & Chemicals's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Gujarat Alkalies & Chemicals'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.
Gujarat Alkalies & Chemicals (BOM:530001) has a Operating Margin % of 0.48% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Gujarat Alkalies & Chemicals and its competitors. This is 97% below median its historical median of 16.61. According to the industry distribution chart, Gujarat Alkalies & Chemicals ranks #1236 out of 1580 companies in the Chemicals industry, placing it in the top 78.2%.
Is Gujarat Alkalies & Chemicals' Operating Margin % too high?
Gujarat Alkalies & Chemicals' current Operating Margin % of 0.48% is 97% below median its 10-year median of 16.61. The Chemicals industry median Operating Margin % is 6.02. Gujarat Alkalies & Chemicals' value of 0.48% is 92% below this industry median. Based on the distribution chart, Gujarat Alkalies & Chemicals ranks #1236 out of 1580 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Gujarat Alkalies & Chemicals has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Gujarat Alkalies & Chemicals' Operating Margin % compare to DOW?
According to the Chemicals industry distribution chart, Gujarat Alkalies & Chemicals ranks #1236 out of 1580 companies for Operating Margin %. This places Gujarat Alkalies & Chemicals in the lower half of its industry. The industry median Operating Margin % is 6.02. Gujarat Alkalies & Chemicals' value of 0.48% is 92% below this benchmark. While the company's 10-year median is 16.61 vs. the industry median of 6.02, Gujarat Alkalies & Chemicals 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 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. Gujarat Alkalies & Chemicals's current Operating Margin % of 0.48% is 92% 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 Gujarat Alkalies & Chemicals 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. Gujarat Alkalies & Chemicals's current Operating Margin % is 0.48%, which is 97% below median its own 10-year median of 16.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gujarat Alkalies & Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Gujarat Alkalies & Chemicals (BOM:530001) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹734.78, compared to a current price of ₹608.95 — trading 17.1% below its estimated fair value. The current Operating Margin % is 0.48%, which is 97% below median its 10-year median of 16.61 and 92% below the Chemicals industry median of 6.02. Gujarat Alkalies & Chemicals' overall GF Score™ is 72/100 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 Gujarat Alkalies & Chemicals (BOM:530001), the current Operating Margin % is 0.48% 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 Gujarat Alkalies & Chemicals (BOM:530001) Overvalued in 2026?
Based on GuruFocus' analysis, Gujarat Alkalies & Chemicals stock appears to be undervalued.
The current stock price of ₹608.95 is trading 17.1% below its estimated GF Value™ of ₹734.78.
GuruFocus considers Gujarat Alkalies & Chemicals to be Modestly Undervalued.
Key valuation signals for BOM:530001:
Operating Margin %: 0.48% (97% below median its 10-year median of 16.61)
GF Value™: ₹734.78 vs. price of ₹608.95 (17.1% below fair value)
Industry Position: 92% below the Chemicals median (#1236 of 1580)
No single metric tells the full story. See the BOM:530001 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gujarat Alkalies & Chemicals Ltd is a chemical manufacturing company. The company's product basket comprises various products, including caustic soda, chlorine, hydrochloric acid, hydrogen, chloromethanes, potassium hydroxide, potassium carbonate, sodium cyanide, hydrogen peroxide, and many others. It serves various industries such as soaps and detergents, glass, chemicals, fertilizers, textiles, alumina refining, water treatments, paper, pharmaceuticals, etc., both directly as well as through dealers. The company operates in a single segment, namely, Chemicals, and caters to both domestic and international markets, of which a majority of its revenue is derived from its customers within India.
72GF Score
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