Raama FinanceBOM:538540 +4.95%77 Operating Margin % is 35.91% as of Mar. 2026, which is 745% above its 10-year median of 4.25. GuruFocus rates BOM:538540 with a GF Score™ of 77/100 and a GF Value™ of ₹32.02 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 412 Credit Services companies, Raama Finance ranks better than 71.12% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Raama Finance's Operating Income for the
three
months ended in Mar. 2026 was ₹34.6 Mil. Raama Finance's Revenue for the
three
months ended in Mar. 2026 was ₹96.3 Mil. Therefore, Raama Finance's Operating Margin % for the quarter that ended in Mar. 2026 was 35.91%.
Good Sign:
Raama Finance Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Raama Finance's Operating Margin % or its related term are showing as below:
BOM:538540'
s Operating Margin % Range Over the Past 10 Years
Min: 2.56 Med: 4.25 Max: 34.97
Current: 33.49
BOM:538540's Operating Margin % is ranked better than 71.12% of 412
companies
in the Credit Services industry
Industry Median: 17.325
vs BOM:538540: 33.49
Raama Finance's 5-Year Average Operating Margin % Growth Rate was 50.00% per year.
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.
Raama Finance Operating Margin % Related Terms
Raama Finance Operating Margin % Historical Data
* Premium members only.
The historical data trend for Raama Finance'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:538540 vs V, MA, AXP: Operating Margin % Comparison
For the Credit Services subindustry, Raama Finance'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.
Raama Finance Operating Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Raama Finance's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Raama Finance'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.
Raama Finance'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.
Raama Finance (BOM:538540) has a Operating Margin % of 35.91% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Raama Finance and its competitors. This is 745% above median its historical median of 4.25. Over the past decade, Raama Finance's Operating Margin % has ranged from 2.56 to 34.97. According to the industry distribution chart, Raama Finance ranks #119 out of 412 companies in the Credit Services industry, placing it in the top 28.9%.
Is Raama Finance's Operating Margin % too high?
Raama Finance's current Operating Margin % of 35.91% is 745% above median its 10-year median of 4.25. Over the past 10 years, this metric has ranged from a low of 2.56 to a high of 34.97. The Credit Services industry median Operating Margin % is 17.33. Raama Finance's value of 35.91% is 107.3% above this industry median. Based on the distribution chart, Raama Finance ranks #119 out of 412 companies in the Credit Services industry, which is above the industry midpoint. Overall, Raama Finance has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Raama Finance's Operating Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Raama Finance ranks #119 out of 412 companies for Operating Margin %. This puts Raama Finance in the upper half of its industry. The industry median Operating Margin % is 17.33. Raama Finance's value of 35.91% is 107.3% above this benchmark. Historically, Raama Finance's own Operating Margin % has ranged from 2.56 to 34.97 over the past decade. While the company's 10-year median is 4.25 vs. the industry median of 17.33, Raama Finance 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 Credit Services company?
The median Operating Margin % among Credit Services companies is 17.33, based on 412 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. Raama Finance's current Operating Margin % of 35.91% is 107.3% 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 Raama Finance and its competitors. For the Credit Services industry, the median Operating Margin % is 17.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Raama Finance's current Operating Margin % is 35.91%, which is 745% above median its own 10-year median of 4.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Raama Finance stock overvalued right now?
Based on GuruFocus' analysis, Raama Finance (BOM:538540) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹32.02, compared to a current price of ₹20.14 — trading 37.1% below its estimated fair value. The current Operating Margin % is 35.91%, which is 745% above median its 10-year median of 4.25 and 107.3% above the Credit Services industry median of 17.33. Raama Finance's overall GF Score™ is 77/100 with 3 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 Raama Finance (BOM:538540), the current Operating Margin % is 35.91% 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 Raama Finance (BOM:538540) Overvalued in 2026?
Based on GuruFocus' analysis, Raama Finance stock appears to be undervalued.
The current stock price of ₹20.14 is trading 37.1% below its estimated GF Value™ of ₹32.02.
GuruFocus considers Raama Finance to be Significantly Undervalued.
Key valuation signals for BOM:538540:
Operating Margin %: 35.91% (745% above median its 10-year median of 4.25)
GF Value™: ₹32.02 vs. price of ₹20.14 (37.1% below fair value)
Industry Position: 107.3% above the Credit Services median (#119 of 412)
No single metric tells the full story. See the BOM:538540 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Raama Finance Ltd, formerly known as Ramchandra Leasing & Finance Ltd, is a non-banking finance company. It is engaged in commercial loan activities. Its services include leasing (short term and long term) and hire purchase. It provides financial assistance in the form of loans (secured and unsecured) to corporate bodies. The company offers working capital term loan for a term period of a year and two.
77GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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