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Smruthi OrganicsBOM:540686 -1.04%68 Operating Margin % is 7.02% as of Mar. 2026, which is 7% below its 10-year median of 7.58. GuruFocus rates BOM:540686 with a GF Score™ of 68/100 and a GF Value™ of ₹107.46 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 961 Drug Manufacturers companies, Smruthi Organics ranks worse than 53.49% on this metric.
Smruthi Organics Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -18.8%.
The historical rank and industry rank for Smruthi Organics's Operating Margin % or its related term are showing as below:
BOM:540686'
s Operating Margin % Range Over the Past 10 Years
Min: 3.7 Med: 7.58 Max: 19.78
Current: 6.56
BOM:540686's Operating Margin % is ranked worse than 53.49% of 961
companies
in the Drug Manufacturers industry
Industry Median: 7.57
vs BOM:540686: 6.56
Smruthi Organics's 5-Year Average Operating Margin % Growth Rate was -18.80% per year.
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.
Smruthi Organics Operating Margin % Related Terms
Smruthi Organics Operating Margin % Historical Data
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The historical data trend for Smruthi Organics'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:540686 vs ZTS, UTHR: Operating Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Smruthi Organics'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.
Smruthi Organics Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Smruthi Organics's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Smruthi Organics'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.
Smruthi Organics'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.
Smruthi Organics (BOM:540686) has a Operating Margin % of 7.02% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Smruthi Organics and its competitors. This is near median its historical median of 7.58. Over the past decade, Smruthi Organics' Operating Margin % has ranged from 3.70 to 19.78. According to the industry distribution chart, Smruthi Organics ranks #514 out of 961 companies in the Drug Manufacturers industry, placing it in the top 53.5%.
Is Smruthi Organics' Operating Margin % too high?
Smruthi Organics' current Operating Margin % of 7.02% is near median its 10-year median of 7.58. Over the past 10 years, this metric has ranged from a low of 3.70 to a high of 19.78. The Drug Manufacturers industry median Operating Margin % is 7.57. Smruthi Organics' value of 7.02% is 7.3% below this industry median. Based on the distribution chart, Smruthi Organics ranks #514 out of 961 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Smruthi Organics has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Smruthi Organics' Operating Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Smruthi Organics ranks #514 out of 961 companies for Operating Margin %. This places Smruthi Organics in the lower half of its industry. The industry median Operating Margin % is 7.57. Smruthi Organics' value of 7.02% is 7.3% below this benchmark. Historically, Smruthi Organics' own Operating Margin % has ranged from 3.70 to 19.78 over the past decade. While the company's 10-year median is 7.58 vs. the industry median of 7.57, Smruthi Organics 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.57, based on 961 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. Smruthi Organics's current Operating Margin % of 7.02% is 7.3% 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 Smruthi Organics and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smruthi Organics's current Operating Margin % is 7.02%, which is near median its own 10-year median of 7.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smruthi Organics stock overvalued right now?
Based on GuruFocus' analysis, Smruthi Organics (BOM:540686) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹107.46, compared to a current price of ₹118.80 — trading 10.6% above its estimated fair value. The current Operating Margin % is 7.02%, which is near median its 10-year median of 7.58 and 7.3% below the Drug Manufacturers industry median of 7.57. Smruthi Organics' overall GF Score™ is 68/100 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 Smruthi Organics (BOM:540686), the current Operating Margin % is 7.02% 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 Smruthi Organics (BOM:540686) Overvalued in 2026?
Based on GuruFocus' analysis, Smruthi Organics stock appears to be overvalued.
The current stock price of ₹118.80 is trading 10.6% above its estimated GF Value™ of ₹107.46.
GuruFocus considers Smruthi Organics to be Modestly Overvalued.
Key valuation signals for BOM:540686:
Operating Margin %: 7.02% (near median its 10-year median of 7.58)
GF Value™: ₹107.46 vs. price of ₹118.80 (10.6% above fair value)
Industry Position: 7.3% below the Drug Manufacturers median (#514 of 961)
No single metric tells the full story. See the BOM:540686 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smruthi Organics Ltd is engaged in the manufacture of bulk drugs and drug intermediates (API Products). The product portfolio includes Amlodipine Besilate, Amlodipine Base, S-Amlodipine Besilate, S-Amlodipine Base, Norfloxacin, Metformin HCI, Diloxanide Furoate, Phthaloyl Amlodipine, Pantoprazole Sodium, Pefloxacin Mesylate Dihydrate, Telmisartan, Losartan Potassium, and many more. It has two reportable business segments: Bulk Drugs and Drugs Intermediates (API), and Formulation. It generates the majority of its revenue from the Bulk Drugs and Drugs Intermediates (API) segment. Geographically, the company generates maximum revenue from outside India through exports, and the rest from its business within India.
68GF Score
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