HPL Electric & PowerBOM:540136 -3.39%79 Operating Margin % is 11.96% as of Mar. 2026, which is 30% above its 10-year median of 9.21. GuruFocus rates BOM:540136 with a GF Score™ of 79/100 and a GF Value™ of ₹465.05 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 3,032 Industrial Products companies, HPL Electric & Power ranks better than 73.75% on this metric.
HPL Electric & Power Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for HPL Electric & Power's Operating Margin % or its related term are showing as below:
BOM:540136'
s Operating Margin % Range Over the Past 10 Years
Min: 7.7 Med: 9.21 Max: 12.5
Current: 12.05
BOM:540136's Operating Margin % is ranked better than 73.75% of 3032
companies
in the Industrial Products industry
Industry Median: 6.535
vs BOM:540136: 12.05
HPL Electric & Power's 5-Year Average Operating Margin % Growth Rate was 10.00% per year.
HPL Electric & Power (BOM:540136) 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.
HPL Electric & Power Operating Margin % Related Terms
HPL Electric & Power Operating Margin % Historical Data
* Premium members only.
The historical data trend for HPL Electric & Power'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:540136 vs VRT, BE: Operating Margin % Comparison
For the Electrical Equipment & Parts subindustry, HPL Electric & Power'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.
HPL Electric & Power Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, HPL Electric & Power's Operating Margin % distribution charts can be found below:
* The bar in red indicates where HPL Electric & Power's Operating Margin % falls into.
HPL Electric & Power 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.
HPL Electric & Power'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.
HPL Electric & Power (BOM:540136) has a Operating Margin % of 11.96% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on HPL Electric & Power and its competitors. This is 30% above median its historical median of 9.21. Over the past decade, HPL Electric & Power's Operating Margin % has ranged from 7.70 to 12.50. According to the industry distribution chart, HPL Electric & Power ranks #796 out of 3032 companies in the Industrial Products industry, placing it in the top 26.3%.
Is HPL Electric & Power's Operating Margin % too high?
HPL Electric & Power's current Operating Margin % of 11.96% is 30% above median its 10-year median of 9.21. Over the past 10 years, this metric has ranged from a low of 7.70 to a high of 12.50. The Industrial Products industry median Operating Margin % is 6.54. HPL Electric & Power's value of 11.96% is 83% above this industry median. Based on the distribution chart, HPL Electric & Power ranks #796 out of 3032 companies in the Industrial Products industry, which is above the industry midpoint. Overall, HPL Electric & Power has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does HPL Electric & Power's Operating Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, HPL Electric & Power ranks #796 out of 3032 companies for Operating Margin %. This puts HPL Electric & Power in the upper half of its industry. The industry median Operating Margin % is 6.54. HPL Electric & Power's value of 11.96% is 83% above this benchmark. Historically, HPL Electric & Power's own Operating Margin % has ranged from 7.70 to 12.50 over the past decade. While the company's 10-year median is 9.21 vs. the industry median of 6.54, HPL Electric & Power 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 an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.54, based on 3,032 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. HPL Electric & Power's current Operating Margin % of 11.96% is 83% 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 HPL Electric & Power and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HPL Electric & Power's current Operating Margin % is 11.96%, which is 30% above median its own 10-year median of 9.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HPL Electric & Power stock overvalued right now?
Based on GuruFocus' analysis, HPL Electric & Power (BOM:540136) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹465.05, compared to a current price of ₹366.25 — trading 21.2% below its estimated fair value. The current Operating Margin % is 11.96%, which is 30% above median its 10-year median of 9.21 and 83% above the Industrial Products industry median of 6.54. HPL Electric & Power's overall GF Score™ is 79/100 with 3 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 HPL Electric & Power (BOM:540136), the current Operating Margin % is 11.96% 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 HPL Electric & Power (BOM:540136) Overvalued in 2026?
Based on GuruFocus' analysis, HPL Electric & Power stock appears to be undervalued.
The current stock price of ₹366.25 is trading 21.2% below its estimated GF Value™ of ₹465.05.
GuruFocus considers HPL Electric & Power to be Modestly Undervalued.
Key valuation signals for BOM:540136:
Operating Margin %: 11.96% (30% above median its 10-year median of 9.21)
GF Value™: ₹465.05 vs. price of ₹366.25 (21.2% below fair value)
Industry Position: 83% above the Industrial Products median (#796 of 3032)
No single metric tells the full story. See the BOM:540136 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HPL Electric & Power Ltd is an Indian company engaged in manufacturing electric equipment across the key verticals: Metering, Switchgear, Lighting and Electronics, and Cables. The company operates in two segments: Metering, systems & services, and Consumer, Industrial & services. It derives key revenue from the Metering, Systems & Services segment. The product portfolio includes digital panel meters, smart Meters, Net Meters for Solar Rooftops, Prepaid Metering Solutions, Ebrit Digital Panel Meters, cordless chimes, and Trivector Meters. Geographically, the majority of its revenue is generated in India.
79GF Score
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