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Star Housing FinanceBOM:539017 -0.82%77 Operating Margin % is 6.98% as of Dec. 2025, which is 78% below its 10-year median of 32.43. GuruFocus rates BOM:539017 with a GF Score™ of 77/100 and a GF Value™ of ₹80.89 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 47 Banks companies, Star Housing Finance ranks worse than 65.96% on this metric.
Star Housing Finance (BOM:539017) 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.
Star Housing Finance Operating Margin % Related Terms
Star Housing Finance Operating Margin % Historical Data
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The historical data trend for Star Housing 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:539017 vs RKT, FNMA, PFSI: Operating Margin % Comparison
For the Mortgage Finance subindustry, Star Housing 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.
Star Housing Finance Operating Margin % vs Banks Industry
For the Banks industry and Financial Services sector, Star Housing Finance's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Star Housing Finance's Operating Margin % falls into.
Star Housing 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.
Star Housing Finance's Operating Margin % for the fiscal year that ended in Mar. 2025 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.
Star Housing Finance (BOM:539017) has a Operating Margin % of 6.98% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Star Housing Finance and its competitors. This is 78% below median its historical median of 32.43. According to the industry distribution chart, Star Housing Finance ranks #31 out of 47 companies in the Banks industry, placing it in the top 66%.
Is Star Housing Finance's Operating Margin % too high?
Star Housing Finance's current Operating Margin % of 6.98% is 78% below median its 10-year median of 32.43. The Banks industry median Operating Margin % is 18.49. Star Housing Finance's value of 6.98% is 62.2% below this industry median. Based on the distribution chart, Star Housing Finance ranks #31 out of 47 companies in the Banks industry, which is below the industry midpoint. Overall, Star Housing Finance has a GF Score™ of 77/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Star Housing Finance's Operating Margin % compare to RKT and FNMA?
According to the Banks industry distribution chart, Star Housing Finance ranks #31 out of 47 companies for Operating Margin %. This places Star Housing Finance in the lower half of its industry. The industry median Operating Margin % is 18.49. Star Housing Finance's value of 6.98% is 62.2% below this benchmark. While the company's 10-year median is 32.43 vs. the industry median of 18.49, Star Housing Finance has consistently been below 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 Banks company?
The median Operating Margin % among Banks companies is 18.49, based on 47 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. Star Housing Finance's current Operating Margin % of 6.98% is 62.2% below 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 Star Housing Finance and its competitors. For the Banks industry, the median Operating Margin % is 18.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Star Housing Finance's current Operating Margin % is 6.98%, which is 78% below median its own 10-year median of 32.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Star Housing Finance stock overvalued right now?
Based on GuruFocus' analysis, Star Housing Finance (BOM:539017) is currently considered Possible Value Trap. The stock's GF Value™ is ₹80.89, compared to a current price of ₹6.05 — trading 92.5% below its estimated fair value. The current Operating Margin % is 6.98%, which is 78% below median its 10-year median of 32.43 and 62.2% below the Banks industry median of 18.49. Star Housing Finance's overall GF Score™ is 77/100 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 Star Housing Finance (BOM:539017), the current Operating Margin % is 6.98% as of Dec. 2025. 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 Star Housing Finance (BOM:539017) Overvalued in 2026?
Based on GuruFocus' analysis, Star Housing Finance stock appears to be undervalued.
The current stock price of ₹6.05 is trading 92.5% below its estimated GF Value™ of ₹80.89.
GuruFocus considers Star Housing Finance to be Possible Value Trap.
Key valuation signals for BOM:539017:
Operating Margin %: 6.98% (78% below median its 10-year median of 32.43)
GF Value™: ₹80.89 vs. price of ₹6.05 (92.5% below fair value)
Industry Position: 62.2% below the Banks median (#31 of 47)
No single metric tells the full story. See the BOM:539017 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Star Housing Finance Ltd is a non-deposit-taking housing finance company. The company's loan products include home loans, mortgage loans, and builder loans. The firm offers home loans for the purchase of flats and houses, renovation of existing units, extension of existing units, and purchase of plots for the construction of houses. The company offers a builder loan for the construction of residential flats. The company is engaged in the business of providing loans to individuals, corporations, and developers for the purchase, construction, development, and repair of houses, apartments, and commercial properties in India.
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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