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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.
Vidhi Specialty Food Ingredients Operating Margin % Related Terms
Vidhi Specialty Food Ingredients 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.
BOM:531717 vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Vidhi Specialty Food Ingredients'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.
Vidhi Specialty Food Ingredients Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Vidhi Specialty Food Ingredients's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Vidhi Specialty Food Ingredients'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.
Vidhi Specialty Food Ingredients (BOM:531717) has a Operating Margin % of 16.30% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Vidhi Specialty Food Ingredients and its competitors. This is near median its historical median of 16.12. Over the past decade, Vidhi Specialty Food Ingredients' Operating Margin % has ranged from 12.10 to 19.27. According to the industry distribution chart, Vidhi Specialty Food Ingredients ranks #211 out of 1579 companies in the Chemicals industry, placing it in the top 13.4%.
Is Vidhi Specialty Food Ingredients' Operating Margin % too high?
Vidhi Specialty Food Ingredients' current Operating Margin % of 16.30% is near median its 10-year median of 16.12. Over the past 10 years, this metric has ranged from a low of 12.10 to a high of 19.27. The Chemicals industry median Operating Margin % is 6.13. Vidhi Specialty Food Ingredients' value of 16.30% is 165.9% above this industry median. Based on the distribution chart, Vidhi Specialty Food Ingredients ranks #211 out of 1579 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Vidhi Specialty Food Ingredients has a GF Score™ of 69/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Vidhi Specialty Food Ingredients' Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Vidhi Specialty Food Ingredients ranks #211 out of 1579 companies for Operating Margin %. This places Vidhi Specialty Food Ingredients in the top 13% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.13. Vidhi Specialty Food Ingredients' value of 16.30% is 165.9% above this benchmark. Historically, Vidhi Specialty Food Ingredients' own Operating Margin % has ranged from 12.10 to 19.27 over the past decade. While the company's 10-year median is 16.12 vs. the industry median of 6.13, Vidhi Specialty Food Ingredients 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.13, based on 1,579 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. Vidhi Specialty Food Ingredients's current Operating Margin % of 16.30% is 165.9% 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 Vidhi Specialty Food Ingredients and its competitors. For the Chemicals industry, the median Operating Margin % is 6.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vidhi Specialty Food Ingredients's current Operating Margin % is 16.30%, which is near median its own 10-year median of 16.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vidhi Specialty Food Ingredients stock overvalued right now?
Based on GuruFocus' analysis, Vidhi Specialty Food Ingredients (BOM:531717) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹539.41, compared to a current price of ₹331.00 — trading 38.6% below its estimated fair value. The current Operating Margin % is 16.30%, which is near median its 10-year median of 16.12 and 165.9% above the Chemicals industry median of 6.13. Vidhi Specialty Food Ingredients' overall GF Score™ is 69/100 with 1 warning sign 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 Vidhi Specialty Food Ingredients (BOM:531717), the current Operating Margin % is 16.30% as of Jun. 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 Vidhi Specialty Food Ingredients (BOM:531717) Overvalued in 2026?
Based on GuruFocus' analysis, Vidhi Specialty Food Ingredients stock appears to be undervalued.
The current stock price of ₹331.00 is trading 38.6% below its estimated GF Value™ of ₹539.41.
GuruFocus considers Vidhi Specialty Food Ingredients to be Significantly Undervalued.
Key valuation signals for BOM:531717:
Operating Margin %: 16.30% (near median its 10-year median of 16.12)
GF Value™: ₹539.41 vs. price of ₹331.00 (38.6% below fair value)
Industry Position: 165.9% above the Chemicals median (#211 of 1579)
No single metric tells the full story. See the BOM:531717 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vidhi Specialty Food Ingredients Ltd is involved in manufacturing and trading synthetic food colors and chemicals. The company provides synthetic water-soluble colors, natural colors, aluminum lakes, lakes certified under the Federal Food, Drug, and Cosmetic Act, drug and cosmetic colors, and other products. Their products are used to add color to food and beverages, confectionery, pharmaceuticals, feeds, cosmetics, inkjet inks, pet food, healthcare, and salt-free color applications. The manufacturing plant is located in the Raigad district of Maharashtra, India. The company's operations are managed from India, and it operates both within India and internationally. The majority of its revenue is generated from export sales.
69GF Score
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