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Gujarat EnergyBOM:539336 -3.11%83 Operating Margin % is 6.65% as of Mar. 2026, which is 35% below its 10-year median of 10.25. GuruFocus rates BOM:539336 with a GF Score™ of 83/100 and a GF Value™ of ₹648.65 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 499 Utilities - Regulated companies, Gujarat Energy ranks worse than 67.94% on this metric.
Gujarat Energy Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -10.9%.
The historical rank and industry rank for Gujarat Energy's Operating Margin % or its related term are showing as below:
BOM:539336'
s Operating Margin % Range Over the Past 10 Years
Min: 8.18 Med: 10.25 Max: 18.01
Current: 8.18
BOM:539336's Operating Margin % is ranked worse than 67.94% of 499
companies
in the Utilities - Regulated industry
Industry Median: 14.66
vs BOM:539336: 8.18
Gujarat Energy's 5-Year Average Operating Margin % Growth Rate was -10.90% per year.
Gujarat Energy (BOM:539336) 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.
Gujarat Energy Operating Margin % Related Terms
Gujarat Energy Operating Margin % Historical Data
* Premium members only.
The historical data trend for Gujarat Energy'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:539336 vs ATO, NI, UGI: Operating Margin % Comparison
For the Utilities - Regulated Gas subindustry, Gujarat Energy'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.
Gujarat Energy Operating Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Gujarat Energy's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Gujarat Energy'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.
Gujarat Energy'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.
Gujarat Energy (BOM:539336) has a Operating Margin % of 6.65% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Gujarat Energy and its competitors. This is 35% below median its historical median of 10.25. Over the past decade, Gujarat Energy's Operating Margin % has ranged from 8.18 to 18.01. According to the industry distribution chart, Gujarat Energy ranks #339 out of 499 companies in the Utilities - Regulated industry, placing it in the top 67.9%.
Is Gujarat Energy's Operating Margin % too high?
Gujarat Energy's current Operating Margin % of 6.65% is 35% below median its 10-year median of 10.25. Over the past 10 years, this metric has ranged from a low of 8.18 to a high of 18.01. The Utilities - Regulated industry median Operating Margin % is 14.66. Gujarat Energy's value of 6.65% is 54.6% below this industry median. Based on the distribution chart, Gujarat Energy ranks #339 out of 499 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Gujarat Energy has a GF Score™ of 83/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Gujarat Energy's Operating Margin % compare to ATO and NI?
According to the Utilities - Regulated industry distribution chart, Gujarat Energy ranks #339 out of 499 companies for Operating Margin %. This places Gujarat Energy in the lower half of its industry. The industry median Operating Margin % is 14.66. Gujarat Energy's value of 6.65% is 54.6% below this benchmark. Historically, Gujarat Energy's own Operating Margin % has ranged from 8.18 to 18.01 over the past decade. While the company's 10-year median is 10.25 vs. the industry median of 14.66, Gujarat Energy 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 an Utilities - Regulated company?
The median Operating Margin % among Utilities - Regulated companies is 14.66, based on 499 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. Gujarat Energy's current Operating Margin % of 6.65% is 54.6% 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 Gujarat Energy and its competitors. For the Utilities - Regulated industry, the median Operating Margin % is 14.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gujarat Energy's current Operating Margin % is 6.65%, which is 35% below median its own 10-year median of 10.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gujarat Energy stock overvalued right now?
Based on GuruFocus' analysis, Gujarat Energy (BOM:539336) is currently considered Possible Value Trap. The stock's GF Value™ is ₹648.65, compared to a current price of ₹266.80 — trading 58.9% below its estimated fair value. The current Operating Margin % is 6.65%, which is 35% below median its 10-year median of 10.25 and 54.6% below the Utilities - Regulated industry median of 14.66. Gujarat Energy's overall GF Score™ is 83/100 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 Gujarat Energy (BOM:539336), the current Operating Margin % is 6.65% 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 Gujarat Energy (BOM:539336) Overvalued in 2026?
Based on GuruFocus' analysis, Gujarat Energy stock appears to be undervalued.
The current stock price of ₹266.80 is trading 58.9% below its estimated GF Value™ of ₹648.65.
GuruFocus considers Gujarat Energy to be Possible Value Trap.
Key valuation signals for BOM:539336:
Operating Margin %: 6.65% (35% below median its 10-year median of 10.25)
GF Value™: ₹648.65 vs. price of ₹266.80 (58.9% below fair value)
Industry Position: 54.6% below the Utilities - Regulated median (#339 of 499)
No single metric tells the full story. See the BOM:539336 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gujarat Energy Ltd, formerly Gujarat Gas Ltd is an India-based gas distribution company. Its activities include sale, purchase, supply, distribution, transport, trading in Natural Gas, Compressed natural gas, Liquefied natural gas, Liquefied petroleum gas, and other gaseous forms. The company transports the gas through pipelines, trucks, trains, or other suitable modes of transportation. It operates in the segment of the natural gas business. All the business activities of the company are carried out in India.
83GF Score
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