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.
Bhatia Communications & Retail (India) Operating Margin % Related Terms
Bhatia Communications & Retail (India) 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.
BOM:540956 vs SNX, ARW, AVT: Operating Margin % Comparison
For the Electronics & Computer Distribution subindustry, Bhatia Communications & Retail (India)'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.
Bhatia Communications & Retail (India) Operating Margin % vs Hardware Industry
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.
* 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.
Bhatia Communications & Retail (India) (BOM:540956) has a Operating Margin % of 3.14% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Bhatia Communications & Retail (India) and its competitors. According to the industry distribution chart, Bhatia Communications & Retail (India) ranks #1251 out of 2476 companies in the Hardware industry, placing it in the top 50.5%.
Is Bhatia Communications & Retail (India)'s Operating Margin % too high?
Bhatia Communications & Retail (India)'s current Operating Margin % is 3.14%. The Hardware industry median Operating Margin % is 3.80. Bhatia Communications & Retail (India)'s value of 3.14% is 17.3% below this industry median. Based on the distribution chart, Bhatia Communications & Retail (India) ranks #1251 out of 2476 companies in the Hardware industry, which is below the industry midpoint. Overall, Bhatia Communications & Retail (India) has a GF Score™ of 93/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Bhatia Communications & Retail (India)'s Operating Margin % compare to SNX and ARW?
According to the Hardware industry distribution chart, Bhatia Communications & Retail (India) ranks #1251 out of 2476 companies for Operating Margin %. This places Bhatia Communications & Retail (India) in the lower half of its industry. The industry median Operating Margin % is 3.80. Bhatia Communications & Retail (India)'s value of 3.14% is 17.3% below this benchmark. 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,476 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. Bhatia Communications & Retail (India)'s current Operating Margin % of 3.14% is 17.3% 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 Bhatia Communications & Retail (India) and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bhatia Communications & Retail (India)'s current Operating Margin % is 3.14%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bhatia Communications & Retail (India) stock overvalued right now?
Based on GuruFocus' analysis, Bhatia Communications & Retail (India) (BOM:540956) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹34.76, compared to a current price of ₹24.98 — trading 28.1% below its estimated fair value. The current Operating Margin % is 3.14% and 17.3% below the Hardware industry median of 3.80. Bhatia Communications & Retail (India)'s overall GF Score™ is 93/100 with 1 warning sign 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 Bhatia Communications & Retail (India) (BOM:540956), the current Operating Margin % is 3.14% 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 Bhatia Communications & Retail (India) (BOM:540956) Overvalued in 2026?
Based on GuruFocus' analysis, Bhatia Communications & Retail (India) stock appears to be undervalued.
The current stock price of ₹24.98 is trading 28.1% below its estimated GF Value™ of ₹34.76.
GuruFocus considers Bhatia Communications & Retail (India) to be Modestly Undervalued.
Key valuation signals for BOM:540956:
Operating Margin %: 3.14%
GF Value™: ₹34.76 vs. price of ₹24.98 (28.1% below fair value)
Industry Position: 17.3% below the Hardware median (#1251 of 2476)
No single metric tells the full story. See the BOM:540956 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bhatia Communications & Retail (India) Business Description
Bhatia Communications & Retail (India) Ltd is the distributor of mobile handsets and accessories. The firm is engaged in the retail and wholesale distribution of mobile handsets, tablets, data cards and mobile accessories through retail and franchised stores. It is a growth-oriented company selling multi-product brands that also operates under stores and sells electronic appliances such as television, refrigerators, air conditioners, coolers, washing machines, and microwaves. Bhatia Communications markets and sells its product under the brands: Apple iPhone, Samsung, OPPO, VIVO, etc. Substantial revenue accrues from owned retail stores. It also offers technical expertise and guide to customers to buy the right product as per their needs.
93GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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