Rainbow FoundationsBOM:531694 -1.20%63 Operating Margin % is 36.90% as of Mar. 2026, which is 49% above its 10-year median of 24.76. GuruFocus rates BOM:531694 with a GF Score™ of 63/100 and a GF Value™ of ₹46.67 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,748 Real Estate companies, Rainbow Foundations ranks better than 73.28% on this metric.
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.
Rainbow Foundations Operating Margin % Related Terms
Rainbow Foundations Operating Margin % Historical Data
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The historical data trend for Rainbow Foundations'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:531694 vs CBRE, BEKE, JLL: Operating Margin % Comparison
For the Real Estate Services subindustry, Rainbow Foundations'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.
Rainbow Foundations Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Rainbow Foundations's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Rainbow Foundations'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.
Rainbow Foundations'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.
Rainbow Foundations (BOM:531694) has a Operating Margin % of 36.90% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Rainbow Foundations and its competitors. This is 49% above median its historical median of 24.76. Over the past decade, Rainbow Foundations' Operating Margin % has ranged from 11.06 to 31.02. According to the industry distribution chart, Rainbow Foundations ranks #467 out of 1748 companies in the Real Estate industry, placing it in the top 26.7%.
Is Rainbow Foundations' Operating Margin % too high?
Rainbow Foundations' current Operating Margin % of 36.90% is 49% above median its 10-year median of 24.76. Over the past 10 years, this metric has ranged from a low of 11.06 to a high of 31.02. The Real Estate industry median Operating Margin % is 13.22. Rainbow Foundations' value of 36.90% is 179.1% above this industry median. Based on the distribution chart, Rainbow Foundations ranks #467 out of 1748 companies in the Real Estate industry, which is above the industry midpoint. Overall, Rainbow Foundations has a GF Score™ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Rainbow Foundations' Operating Margin % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Rainbow Foundations ranks #467 out of 1748 companies for Operating Margin %. This puts Rainbow Foundations in the upper half of its industry. The industry median Operating Margin % is 13.22. Rainbow Foundations' value of 36.90% is 179.1% above this benchmark. Historically, Rainbow Foundations' own Operating Margin % has ranged from 11.06 to 31.02 over the past decade. While the company's 10-year median is 24.76 vs. the industry median of 13.22, Rainbow Foundations 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 a Real Estate company?
The median Operating Margin % among Real Estate companies is 13.22, based on 1,748 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. Rainbow Foundations's current Operating Margin % of 36.90% is 179.1% 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 Rainbow Foundations and its competitors. For the Real Estate industry, the median Operating Margin % is 13.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rainbow Foundations's current Operating Margin % is 36.90%, which is 49% above median its own 10-year median of 24.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rainbow Foundations stock overvalued right now?
Based on GuruFocus' analysis, Rainbow Foundations (BOM:531694) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹46.67, compared to a current price of ₹39.52 — trading 15.3% below its estimated fair value. The current Operating Margin % is 36.90%, which is 49% above median its 10-year median of 24.76 and 179.1% above the Real Estate industry median of 13.22. Rainbow Foundations' overall GF Score™ is 63/100 with 6 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 Rainbow Foundations (BOM:531694), the current Operating Margin % is 36.90% 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 Rainbow Foundations (BOM:531694) Overvalued in 2026?
Based on GuruFocus' analysis, Rainbow Foundations stock appears to be undervalued.
The current stock price of ₹39.52 is trading 15.3% below its estimated GF Value™ of ₹46.67.
GuruFocus considers Rainbow Foundations to be Modestly Undervalued.
Key valuation signals for BOM:531694:
Operating Margin %: 36.90% (49% above median its 10-year median of 24.76)
GF Value™: ₹46.67 vs. price of ₹39.52 (15.3% below fair value)
Industry Position: 179.1% above the Real Estate median (#467 of 1748)
No single metric tells the full story. See the BOM:531694 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rainbow Foundations Ltd is engaged in real estate development, focused on residential and commercial property projects in India. The company undertakes construction and development of real estate properties, delivering completed projects to customers. It generates revenue through sales and leasing of developed properties, operating principally in the Indian real estate market with ongoing project executions and new developments. The company's operations involve land acquisition, construction, and property sales services.
63GF Score
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