Magadh Sugar & EnergyBOM:540650 -0.34%76 Operating Margin % is 24.46% as of Mar. 2026, which is 115% above its 10-year median of 11.40. GuruFocus rates BOM:540650 with a GF Score™ of 76/100 and a GF Value™ of ₹657.12 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 1,950 Consumer Packaged Goods companies, Magadh Sugar & Energy ranks better than 69.9% on this metric.
Magadh Sugar & Energy Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Magadh Sugar & Energy's Operating Margin % or its related term are showing as below:
BOM:540650'
s Operating Margin % Range Over the Past 10 Years
Min: 6.53 Med: 11.4 Max: 21.08
Current: 9.43
BOM:540650's Operating Margin % is ranked better than 69.9% of 1950
companies
in the Consumer Packaged Goods industry
Industry Median: 5.27
vs BOM:540650: 9.43
Magadh Sugar & Energy's 5-Year Average Operating Margin % Growth Rate was 2.10% per year.
Magadh Sugar & Energy (BOM:540650) 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.
Magadh Sugar & Energy Operating Margin % Related Terms
Magadh Sugar & Energy Operating Margin % Historical Data
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The historical data trend for Magadh Sugar & 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:540650 vs MDLZ, HSY, TR: Operating Margin % Comparison
For the Confectioners subindustry, Magadh Sugar & 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.
Magadh Sugar & Energy Operating Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Magadh Sugar & Energy's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Magadh Sugar & Energy's Operating Margin % falls into.
Magadh Sugar & Energy 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.
Magadh Sugar & 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.
Magadh Sugar & Energy (BOM:540650) has a Operating Margin % of 24.46% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Magadh Sugar & Energy and its competitors. This is 115% above median its historical median of 11.40. Over the past decade, Magadh Sugar & Energy's Operating Margin % has ranged from 6.53 to 21.08. According to the industry distribution chart, Magadh Sugar & Energy ranks #587 out of 1950 companies in the Consumer Packaged Goods industry, placing it in the top 30.1%.
Is Magadh Sugar & Energy's Operating Margin % too high?
Magadh Sugar & Energy's current Operating Margin % of 24.46% is 115% above median its 10-year median of 11.40. Over the past 10 years, this metric has ranged from a low of 6.53 to a high of 21.08. The Consumer Packaged Goods industry median Operating Margin % is 5.27. Magadh Sugar & Energy's value of 24.46% is 364.1% above this industry median. Based on the distribution chart, Magadh Sugar & Energy ranks #587 out of 1950 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Magadh Sugar & Energy has a GF Score™ of 76/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Magadh Sugar & Energy's Operating Margin % compare to MDLZ and HSY?
According to the Consumer Packaged Goods industry distribution chart, Magadh Sugar & Energy ranks #587 out of 1950 companies for Operating Margin %. This puts Magadh Sugar & Energy in the upper half of its industry. The industry median Operating Margin % is 5.27. Magadh Sugar & Energy's value of 24.46% is 364.1% above this benchmark. Historically, Magadh Sugar & Energy's own Operating Margin % has ranged from 6.53 to 21.08 over the past decade. While the company's 10-year median is 11.40 vs. the industry median of 5.27, Magadh Sugar & Energy 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 Consumer Packaged Goods company?
The median Operating Margin % among Consumer Packaged Goods companies is 5.27, based on 1,950 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. Magadh Sugar & Energy's current Operating Margin % of 24.46% is 364.1% 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 Magadh Sugar & Energy and its competitors. For the Consumer Packaged Goods industry, the median Operating Margin % is 5.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magadh Sugar & Energy's current Operating Margin % is 24.46%, which is 115% above median its own 10-year median of 11.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magadh Sugar & Energy stock overvalued right now?
Based on GuruFocus' analysis, Magadh Sugar & Energy (BOM:540650) is currently considered Possible Value Trap. The stock's GF Value™ is ₹657.12, compared to a current price of ₹456.35 — trading 30.6% below its estimated fair value. The current Operating Margin % is 24.46%, which is 115% above median its 10-year median of 11.40 and 364.1% above the Consumer Packaged Goods industry median of 5.27. Magadh Sugar & Energy's overall GF Score™ is 76/100 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 Magadh Sugar & Energy (BOM:540650), the current Operating Margin % is 24.46% 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 Magadh Sugar & Energy (BOM:540650) Overvalued in 2026?
Based on GuruFocus' analysis, Magadh Sugar & Energy stock appears to be undervalued.
The current stock price of ₹456.35 is trading 30.6% below its estimated GF Value™ of ₹657.12.
GuruFocus considers Magadh Sugar & Energy to be Possible Value Trap.
Key valuation signals for BOM:540650:
Operating Margin %: 24.46% (115% above median its 10-year median of 11.40)
GF Value™: ₹657.12 vs. price of ₹456.35 (30.6% below fair value)
Industry Position: 364.1% above the Consumer Packaged Goods median (#587 of 1950)
No single metric tells the full story. See the BOM:540650 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Magadh Sugar & Energy ltd is engaged in the business of sugar and its by-products. The company operates through the following business segments: Sugar, Distillery, and Co-generation. The product portfolio of the company includes sugar, molasses, industrial alcohol and ethanol, canned food, and fruit products. Its sugar segment engages in the manufacture and sale of sugar, molasses, and bagasse; the Distillery segment engages in the manufacture and sale of denatured spirits and bio-compost; and Co-generation engages in the generation and transmission of power.
76GF Score
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