KNR ConstructionsBOM:532942 -2.69%76 Operating Margin % is 22.31% as of Mar. 2026, which is 15% above its 10-year median of 19.46. GuruFocus rates BOM:532942 with a GF Score™ of 76/100 and a GF Value™ of ₹160.00 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,762 Construction companies, KNR Constructions ranks better than 93.7% 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.
KNR Constructions Operating Margin % Related Terms
KNR Constructions Operating Margin % Historical Data
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The historical data trend for KNR Constructions'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:532942 vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, KNR Constructions'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.
KNR Constructions Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, KNR Constructions's Operating Margin % distribution charts can be found below:
* The bar in red indicates where KNR Constructions'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.
KNR Constructions'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.
KNR Constructions (BOM:532942) has a Operating Margin % of 22.31% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on KNR Constructions and its competitors. This is 15% above median its historical median of 19.46. Over the past decade, KNR Constructions' Operating Margin % has ranged from 9.11 to 27.58. According to the industry distribution chart, KNR Constructions ranks #111 out of 1762 companies in the Construction industry, placing it in the top 6.3%.
Is KNR Constructions' Operating Margin % too high?
KNR Constructions' current Operating Margin % of 22.31% is 15% above median its 10-year median of 19.46. Over the past 10 years, this metric has ranged from a low of 9.11 to a high of 27.58. The Construction industry median Operating Margin % is 5.90. KNR Constructions' value of 22.31% is 278.5% above this industry median. Based on the distribution chart, KNR Constructions ranks #111 out of 1762 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, KNR Constructions has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does KNR Constructions' Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, KNR Constructions ranks #111 out of 1762 companies for Operating Margin %. This places KNR Constructions in the top 6% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.90. KNR Constructions' value of 22.31% is 278.5% above this benchmark. Historically, KNR Constructions' own Operating Margin % has ranged from 9.11 to 27.58 over the past decade. While the company's 10-year median is 19.46 vs. the industry median of 5.90, KNR Constructions 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 Construction company?
The median Operating Margin % among Construction companies is 5.90, based on 1,762 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. KNR Constructions's current Operating Margin % of 22.31% is 278.5% 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 KNR Constructions and its competitors. For the Construction industry, the median Operating Margin % is 5.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KNR Constructions's current Operating Margin % is 22.31%, which is 15% above median its own 10-year median of 19.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KNR Constructions stock overvalued right now?
Based on GuruFocus' analysis, KNR Constructions (BOM:532942) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹160.00, compared to a current price of ₹134.10 — trading 16.2% below its estimated fair value. The current Operating Margin % is 22.31%, which is 15% above median its 10-year median of 19.46 and 278.5% above the Construction industry median of 5.90. KNR Constructions' overall GF Score™ is 76/100 with 7 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 KNR Constructions (BOM:532942), the current Operating Margin % is 22.31% 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 KNR Constructions (BOM:532942) Overvalued in 2026?
Based on GuruFocus' analysis, KNR Constructions stock appears to be undervalued.
The current stock price of ₹134.10 is trading 16.2% below its estimated GF Value™ of ₹160.00.
GuruFocus considers KNR Constructions to be Modestly Undervalued.
Key valuation signals for BOM:532942:
Operating Margin %: 22.31% (15% above median its 10-year median of 19.46)
GF Value™: ₹160.00 vs. price of ₹134.10 (16.2% below fair value)
Industry Position: 278.5% above the Construction median (#111 of 1762)
No single metric tells the full story. See the BOM:532942 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
KNR Constructions Ltd is an Indian infrastructure service company. Along with its subsidiary, it is engaged in the infrastructure sector and is undertaking turnkey EPC contracts and BOT & HAM projects on a public-private partnership basis. Group activities are involved in the construction of roads, bridges, flyovers, and irrigation projects. The Company's operations predominantly consist of Construction and Engineering activities. The company operates in India.
76GF Score
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