Coffee Day EnterprisesBOM:539436 -2.11%63 Operating Margin % is 2.53% as of Mar. 2026, which is 256% above its 10-year median of 0.71. GuruFocus rates BOM:539436 with a GF Score™ of 63/100 and a GF Value™ of ₹42.08 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 364 Restaurants companies, Coffee Day Enterprises ranks worse than 71.15% on this metric.
Coffee Day Enterprises (BOM:539436) 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.
Coffee Day Enterprises Operating Margin % Related Terms
Coffee Day Enterprises Operating Margin % Historical Data
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The historical data trend for Coffee Day Enterprises'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:539436 vs MCD, SBUX, YUM: Operating Margin % Comparison
For the Restaurants subindustry, Coffee Day Enterprises'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.
Coffee Day Enterprises Operating Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Coffee Day Enterprises's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Coffee Day Enterprises's Operating Margin % falls into.
Coffee Day Enterprises 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.
Coffee Day Enterprises'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.
Coffee Day Enterprises (BOM:539436) has a Operating Margin % of 2.53% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Coffee Day Enterprises and its competitors. This is 256% above median its historical median of 0.71. According to the industry distribution chart, Coffee Day Enterprises ranks #259 out of 364 companies in the Restaurants industry, placing it in the top 71.2%.
Is Coffee Day Enterprises' Operating Margin % too high?
Coffee Day Enterprises' current Operating Margin % of 2.53% is 256% above median its 10-year median of 0.71. The Restaurants industry median Operating Margin % is 4.37. Coffee Day Enterprises' value of 2.53% is 42% below this industry median. Based on the distribution chart, Coffee Day Enterprises ranks #259 out of 364 companies in the Restaurants industry, which is below the industry midpoint. Overall, Coffee Day Enterprises has a GF Score™ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Coffee Day Enterprises' Operating Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Coffee Day Enterprises ranks #259 out of 364 companies for Operating Margin %. This places Coffee Day Enterprises in the lower half of its industry. The industry median Operating Margin % is 4.37. Coffee Day Enterprises' value of 2.53% is 42% below this benchmark. While the company's 10-year median is 0.71 vs. the industry median of 4.37, Coffee Day Enterprises 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 Restaurants company?
The median Operating Margin % among Restaurants companies is 4.37, based on 364 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. Coffee Day Enterprises's current Operating Margin % of 2.53% is 42% 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 Coffee Day Enterprises and its competitors. For the Restaurants industry, the median Operating Margin % is 4.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Coffee Day Enterprises's current Operating Margin % is 2.53%, which is 256% above median its own 10-year median of 0.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Coffee Day Enterprises stock overvalued right now?
Based on GuruFocus' analysis, Coffee Day Enterprises (BOM:539436) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹42.08, compared to a current price of ₹33.47 — trading 20.5% below its estimated fair value. The current Operating Margin % is 2.53%, which is 256% above median its 10-year median of 0.71 and 42% below the Restaurants industry median of 4.37. Coffee Day Enterprises' overall GF Score™ is 63/100 with 4 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 Coffee Day Enterprises (BOM:539436), the current Operating Margin % is 2.53% 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 Coffee Day Enterprises (BOM:539436) Overvalued in 2026?
Based on GuruFocus' analysis, Coffee Day Enterprises stock appears to be undervalued.
The current stock price of ₹33.47 is trading 20.5% below its estimated GF Value™ of ₹42.08.
GuruFocus considers Coffee Day Enterprises to be Modestly Undervalued.
Key valuation signals for BOM:539436:
Operating Margin %: 2.53% (256% above median its 10-year median of 0.71)
GF Value™: ₹42.08 vs. price of ₹33.47 (20.5% below fair value)
Industry Position: 42% below the Restaurants median (#259 of 364)
No single metric tells the full story. See the BOM:539436 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Coffee Day Enterprises Ltd owns and operates a resort and renders consultancy services and trading of coffee beans. The Company, through its subsidiaries, associates, and joint venture companies, is engaged in business in multiple sectors such as coffee retail and exports, Leasing of commercial office space, Hospitality, and Information Technology (IT) / Information technology-enabled services (ITeS). It operates through the following business segments: Coffee and related business, Integrated multimodal logistics, Financial services, Leasing of commercial office space, Hospitality services, and Investment and other corporate functions. The vast majority of its revenue is generated within India and has a presence in Europe and Other countries.
63GF Score
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