Sri Amarnath Finance (BOM:538863) 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 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.
Sri Amarnath Finance Operating Margin % Related Terms
Sri Amarnath Finance Operating Margin % Historical Data
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The historical data trend for Sri Amarnath 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.
Sri Amarnath Finance Operating Margin % Competitor Comparison
For the Capital Markets subindustry, Sri Amarnath 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.
Sri Amarnath Finance Operating Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Sri Amarnath Finance's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sri Amarnath Finance's Operating Margin % falls into.
Sri Amarnath Finance 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.
Sri Amarnath 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.
Sri Amarnath Finance (BOM:538863) has a Operating Margin % of 70.52% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Sri Amarnath Finance and its competitors. This is near median its historical median of 70.72. Over the past decade, Sri Amarnath Finance's Operating Margin % has ranged from 57.03 to 89.85.
Is Sri Amarnath Finance's Operating Margin % too high?
Sri Amarnath Finance's current Operating Margin % of 70.52% is near median its 10-year median of 70.72. Over the past 10 years, this metric has ranged from a low of 57.03 to a high of 89.85. The Capital Markets industry median Operating Margin % is 7.19. Sri Amarnath Finance's value of 70.52% is 880.8% above this industry median. Overall, Sri Amarnath Finance has a GF Score™ of 6/100, reflecting its overall financial health beyond just this single metric.
How does Sri Amarnath Finance's Operating Margin % compare to competitors?
Sri Amarnath Finance's Operating Margin % of 70.52% can be compared against companies in the Capital Markets industry. The industry median Operating Margin % is 7.19. Sri Amarnath Finance's value of 70.52% is 880.8% above this benchmark. Historically, Sri Amarnath Finance's own Operating Margin % has ranged from 57.03 to 89.85 over the past decade. While the company's 10-year median is 70.72 vs. the industry median of 7.19, Sri Amarnath 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 Capital Markets company?
The median Operating Margin % among Capital Markets companies is 7.19, based on 664 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. Sri Amarnath Finance's current Operating Margin % of 70.52% is 880.8% 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 Sri Amarnath Finance and its competitors. For the Capital Markets industry, the median Operating Margin % is 7.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sri Amarnath Finance's current Operating Margin % is 70.52%, which is near median its own 10-year median of 70.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sri Amarnath Finance stock overvalued right now?
Sri Amarnath Finance (BOM:538863) has a current Operating Margin % of 70.52%. The stock's GF Value™ is ₹5.25, compared to a current price of ₹7.05 — trading 34.3% above its estimated fair value. The current Operating Margin % is 70.52%, which is near median its 10-year median of 70.72 and 880.8% above the Capital Markets industry median of 7.19. Sri Amarnath Finance's overall GF Score™ is 6/100 with 2 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 Sri Amarnath Finance (BOM:538863), the current Operating Margin % is 70.52% 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 Sri Amarnath Finance (BOM:538863) Overvalued in 2026?
Based on GuruFocus' analysis, Sri Amarnath Finance stock appears to be overvalued.
The current stock price of ₹7.05 is trading 34.3% above its estimated GF Value™ of ₹5.25.
Key valuation signals for BOM:538863:
Operating Margin %: 70.52% (near median its 10-year median of 70.72)
GF Value™: ₹5.25 vs. price of ₹7.05 (34.3% above fair value)
Industry Position: 880.8% above the Capital Markets median
No single metric tells the full story. See the BOM:538863 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sri Amarnath Finance Ltd is an India-based non-banking financial company. The company is engaged in the business of granting loans and making investments, and is engaged in buying, selling, and transfer of shares and securities of various companies in the capital markets. It also provides loans and advances to customers who are eligible as per the criteria for availing the services of the company. The business of the company falls within a single primary segment. The majority of revenue is generated from Interest Income.
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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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