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Sunshield Chemicals (BOM:530845) Operating Margin % : 12.07% (As of Mar. 2024)


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What is Sunshield Chemicals Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Sunshield Chemicals's Operating Income for the three months ended in Mar. 2024 was ₹103 Mil. Sunshield Chemicals's Revenue for the three months ended in Mar. 2024 was ₹855 Mil. Therefore, Sunshield Chemicals's Operating Margin % for the quarter that ended in Mar. 2024 was 12.07%.

Good Sign:

Sunshield Chemicals Ltd operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Sunshield Chemicals's Operating Margin % or its related term are showing as below:

BOM:530845' s Operating Margin % Range Over the Past 10 Years
Min: 0.26   Med: 5.84   Max: 12.44
Current: 11.66


BOM:530845's Operating Margin % is ranked better than
73.74% of 1531 companies
in the Chemicals industry
Industry Median: 5.78 vs BOM:530845: 11.66

Sunshield Chemicals's 5-Year Average Operating Margin % Growth Rate was 15.40% per year.

Sunshield Chemicals's Operating Income for the three months ended in Mar. 2024 was ₹103 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was ₹331 Mil.


Sunshield Chemicals Operating Margin % Historical Data

The historical data trend for Sunshield Chemicals'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.

* Premium members only.

Sunshield Chemicals Operating Margin % Chart

Sunshield Chemicals Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.08 12.44 10.42 10.09 11.66

Sunshield Chemicals Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.55 10.26 10.73 13.51 12.07

Competitive Comparison of Sunshield Chemicals's Operating Margin %

For the Specialty Chemicals subindustry, Sunshield 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.


Sunshield Chemicals's Operating Margin % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Sunshield Chemicals's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Sunshield Chemicals's Operating Margin % falls into.



Sunshield Chemicals Operating Margin % Calculation

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.

Sunshield Chemicals's Operating Margin % for the fiscal year that ended in Mar. 2024 is calculated as

Operating Margin %=Operating Income (A: Mar. 2024 ) / Revenue (A: Mar. 2024 )
=330.5 / 2833.8
=11.66 %

Sunshield Chemicals's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=103.2 / 855.3
=12.07 %

* 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.


Sunshield Chemicals  (BOM:530845) Operating Margin % Explanation

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 Nokia’s 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.


Sunshield Chemicals Operating Margin % Related Terms

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Sunshield Chemicals (BOM:530845) Business Description

Traded in Other Exchanges
N/A
Address
Pali-Khopoli Road, Village Rasal, Wave Taluka Sudhagad, District Raigad, Post Pali, Mumbai, MH, IND, 410205
Sunshield Chemicals Ltd is a company engaged in the manufacture and sale of specialty chemicals in domestic and international markets. Its products are Ethoxylates & Propoxylates, THEIC, HQEE, Antioxidants, and Urea Formaldehyde Resin. Its specialty chemicals are used across a range of industries, such as wire insulation enamel, polyvinyl chloride stabilizers, inks, colors, coatings, textiles, agrochemicals, polymers, plastics, rubber, latex, tire and tubes, conveyor belts, lubricants, additives, and home care. It operates only in one segment namely Specialty Chemicals and generates its revenue from India.

Sunshield Chemicals (BOM:530845) Headlines

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