Kwality PharmaceuticalsBOM:539997 -0.80%64 Operating Margin % is 21.32% as of Mar. 2026, which is 78% above its 10-year median of 11.95. GuruFocus rates BOM:539997 with a GF Score™ of 64/100 and a GF Value™ of ₹1,152.92 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 952 Drug Manufacturers companies, Kwality Pharmaceuticals ranks better than 80.99% on this metric.
Kwality Pharmaceuticals Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Kwality Pharmaceuticals's Operating Margin % or its related term are showing as below:
BOM:539997'
s Operating Margin % Range Over the Past 10 Years
Min: 6.37 Med: 11.95 Max: 35.29
Current: 19.57
BOM:539997's Operating Margin % is ranked better than 80.99% of 952
companies
in the Drug Manufacturers industry
Industry Median: 7.58
vs BOM:539997: 19.57
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.
Kwality Pharmaceuticals Operating Margin % Related Terms
Kwality Pharmaceuticals Operating Margin % Historical Data
* Premium members only.
The historical data trend for Kwality Pharmaceuticals'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.
For the Drug Manufacturers - Specialty & Generic subindustry, Kwality Pharmaceuticals'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.
Kwality Pharmaceuticals Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Kwality Pharmaceuticals's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Kwality Pharmaceuticals'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.
Kwality Pharmaceuticals'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.
Kwality Pharmaceuticals (BOM:539997) has a Operating Margin % of 21.32% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Kwality Pharmaceuticals and its competitors. This is 78% above median its historical median of 11.95. Over the past decade, Kwality Pharmaceuticals' Operating Margin % has ranged from 6.37 to 35.29. According to the industry distribution chart, Kwality Pharmaceuticals ranks #181 out of 952 companies in the Drug Manufacturers industry, placing it in the top 19%.
Is Kwality Pharmaceuticals' Operating Margin % too high?
Kwality Pharmaceuticals' current Operating Margin % of 21.32% is 78% above median its 10-year median of 11.95. Over the past 10 years, this metric has ranged from a low of 6.37 to a high of 35.29. The Drug Manufacturers industry median Operating Margin % is 7.58. Kwality Pharmaceuticals' value of 21.32% is 181.3% above this industry median. Based on the distribution chart, Kwality Pharmaceuticals ranks #181 out of 952 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Kwality Pharmaceuticals has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kwality Pharmaceuticals' Operating Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Kwality Pharmaceuticals ranks #181 out of 952 companies for Operating Margin %. This places Kwality Pharmaceuticals in the top 19% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.58. Kwality Pharmaceuticals' value of 21.32% is 181.3% above this benchmark. Historically, Kwality Pharmaceuticals' own Operating Margin % has ranged from 6.37 to 35.29 over the past decade. While the company's 10-year median is 11.95 vs. the industry median of 7.58, Kwality Pharmaceuticals 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.58, based on 952 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. Kwality Pharmaceuticals's current Operating Margin % of 21.32% is 181.3% 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 Kwality Pharmaceuticals and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kwality Pharmaceuticals's current Operating Margin % is 21.32%, which is 78% above median its own 10-year median of 11.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kwality Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Kwality Pharmaceuticals (BOM:539997) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹1,152.92, compared to a current price of ₹2,430.25 — trading 110.8% above its estimated fair value. The current Operating Margin % is 21.32%, which is 78% above median its 10-year median of 11.95 and 181.3% above the Drug Manufacturers industry median of 7.58. Kwality Pharmaceuticals' overall GF Score™ is 64/100 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 Kwality Pharmaceuticals (BOM:539997), the current Operating Margin % is 21.32% 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 Kwality Pharmaceuticals (BOM:539997) Overvalued in 2026?
Based on GuruFocus' analysis, Kwality Pharmaceuticals stock appears to be overvalued.
The current stock price of ₹2,430.25 is trading 110.8% above its estimated GF Value™ of ₹1,152.92.
GuruFocus considers Kwality Pharmaceuticals to be Significantly Overvalued.
Key valuation signals for BOM:539997:
Operating Margin %: 21.32% (78% above median its 10-year median of 11.95)
GF Value™: ₹1,152.92 vs. price of ₹2,430.25 (110.8% above fair value)
Industry Position: 181.3% above the Drug Manufacturers median (#181 of 952)
No single metric tells the full story. See the BOM:539997 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kwality Pharmaceuticals Ltd is an India-based pharmaceutical company. It is principally engaged in manufacturing finished pharmaceutical formulations in a dosage form. The company manufactures and exports pharmaceutical formulations in liquid orals, dry syrups, tablets, capsules, sterile powder for injections, and small-volume injectables.
64GF Score
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