Shankara Building ProductsBOM:540425 -1.98%46 Operating Margin % is 3.27% as of Mar. 2026, which is 12% above its 10-year median of 2.93. GuruFocus rates BOM:540425 with a GF Score™ of 46/100 and a GF Value™ of ₹50.73 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,124 Retail - Cyclical companies, Shankara Building Products ranks worse than 58.99% on this metric.
Shankara Building Products Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -18%.
The historical rank and industry rank for Shankara Building Products's Operating Margin % or its related term are showing as below:
BOM:540425'
s Operating Margin % Range Over the Past 10 Years
Min: 0.81 Med: 2.93 Max: 6.39
Current: 2.46
BOM:540425's Operating Margin % is ranked worse than 58.99% of 1124
companies
in the Retail - Cyclical industry
Industry Median: 3.915
vs BOM:540425: 2.46
Shankara Building Products (BOM:540425) 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.
Shankara Building Products Operating Margin % Related Terms
Shankara Building Products Operating Margin % Historical Data
* 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.
Shankara Building Products Operating Margin % Chart
BOM:540425 vs HD, LOW, FND: Operating Margin % Comparison
For the Home Improvement Retail subindustry, Shankara Building Products'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.
Shankara Building Products Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Shankara Building Products's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Shankara Building Products's Operating Margin % falls into.
Shankara Building Products 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.
Shankara Building Products'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.
Shankara Building Products (BOM:540425) has a Operating Margin % of 3.27% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Shankara Building Products and its competitors. This is 12% above median its historical median of 2.93. Over the past decade, Shankara Building Products' Operating Margin % has ranged from 0.81 to 6.39. According to the industry distribution chart, Shankara Building Products ranks #663 out of 1124 companies in the Retail - Cyclical industry, placing it in the top 59%.
Is Shankara Building Products' Operating Margin % too high?
Shankara Building Products' current Operating Margin % of 3.27% is 12% above median its 10-year median of 2.93. Over the past 10 years, this metric has ranged from a low of 0.81 to a high of 6.39. The Retail - Cyclical industry median Operating Margin % is 3.92. Shankara Building Products' value of 3.27% is 16.5% below this industry median. Based on the distribution chart, Shankara Building Products ranks #663 out of 1124 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Shankara Building Products has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shankara Building Products' Operating Margin % compare to HD and LOW?
According to the Retail - Cyclical industry distribution chart, Shankara Building Products ranks #663 out of 1124 companies for Operating Margin %. This places Shankara Building Products in the lower half of its industry. The industry median Operating Margin % is 3.92. Shankara Building Products' value of 3.27% is 16.5% below this benchmark. Historically, Shankara Building Products' own Operating Margin % has ranged from 0.81 to 6.39 over the past decade. While the company's 10-year median is 2.93 vs. the industry median of 3.92, Shankara Building Products 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 Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.92, based on 1,124 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. Shankara Building Products's current Operating Margin % of 3.27% is 16.5% 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 Shankara Building Products and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shankara Building Products's current Operating Margin % is 3.27%, which is 12% above median its own 10-year median of 2.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shankara Building Products stock overvalued right now?
Based on GuruFocus' analysis, Shankara Building Products (BOM:540425) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹50.73, compared to a current price of ₹123.50 — trading 143.4% above its estimated fair value. The current Operating Margin % is 3.27%, which is 12% above median its 10-year median of 2.93 and 16.5% below the Retail - Cyclical industry median of 3.92. Shankara Building Products' overall GF Score™ is 46/100 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 Shankara Building Products (BOM:540425), the current Operating Margin % is 3.27% 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 Shankara Building Products (BOM:540425) Overvalued in 2026?
Based on GuruFocus' analysis, Shankara Building Products stock appears to be overvalued.
The current stock price of ₹123.50 is trading 143.4% above its estimated GF Value™ of ₹50.73.
GuruFocus considers Shankara Building Products to be Significantly Overvalued.
Key valuation signals for BOM:540425:
Operating Margin %: 3.27% (12% above median its 10-year median of 2.93)
GF Value™: ₹50.73 vs. price of ₹123.50 (143.4% above fair value)
Industry Position: 16.5% below the Retail - Cyclical median (#663 of 1124)
No single metric tells the full story. See the BOM:540425 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shankara Building Products Ltd is an organised retailer of home improvement and building products in India. The company's operating segments include Retail, Channel and Enterprise. It generates maximum revenue from the Retail segment. The Retail segment offers construction materials, plumbing and sanitaryware, flooring, electrical items, and interior-exterior finishing. Its In-house brands include Taurus; Loha; Prince; Century Roof; Ganga and Ganga Gold and Prince Scaffolding.
46GF Score
Get the complete analysis for BOM:540425
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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