Sumitomo Chemical IndiaBOM:542920 -2.40%87 Operating Margin % is 17.15% as of Mar. 2026, which is 7% above its 10-year median of 16.07. GuruFocus rates BOM:542920 with a GF Score™ of 87/100 and a GF Value™ of ₹481.95 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 250 Agriculture companies, Sumitomo Chemical India ranks better than 89.2% on this metric.
Sumitomo Chemical India (BOM:542920) 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.
Sumitomo Chemical India Operating Margin % Related Terms
Sumitomo Chemical India Operating Margin % Historical Data
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The historical data trend for Sumitomo Chemical India'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:542920 vs CTVA, CF, MOS: Operating Margin % Comparison
For the Agricultural Inputs subindustry, Sumitomo Chemical 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.
Sumitomo Chemical India Operating Margin % vs Agriculture Industry
For the Agriculture industry and Basic Materials sector, Sumitomo Chemical India's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sumitomo Chemical India's Operating Margin % falls into.
Sumitomo Chemical India 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.
Sumitomo Chemical India'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.
Sumitomo Chemical India (BOM:542920) has a Operating Margin % of 17.15% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Sumitomo Chemical India and its competitors. This is near median its historical median of 16.07. Over the past decade, Sumitomo Chemical India's Operating Margin % has ranged from 12.08 to 18.68. According to the industry distribution chart, Sumitomo Chemical India ranks #27 out of 250 companies in the Agriculture industry, placing it in the top 10.8%.
Is Sumitomo Chemical India's Operating Margin % too high?
Sumitomo Chemical India's current Operating Margin % of 17.15% is near median its 10-year median of 16.07. Over the past 10 years, this metric has ranged from a low of 12.08 to a high of 18.68. The Agriculture industry median Operating Margin % is 7.04. Sumitomo Chemical India's value of 17.15% is 143.8% above this industry median. Based on the distribution chart, Sumitomo Chemical India ranks #27 out of 250 companies in the Agriculture industry, which is in the top quartile — a strong position relative to peers. Overall, Sumitomo Chemical India has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Chemical India's Operating Margin % compare to CTVA and CF?
According to the Agriculture industry distribution chart, Sumitomo Chemical India ranks #27 out of 250 companies for Operating Margin %. This places Sumitomo Chemical India in the top 11% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.04. Sumitomo Chemical India's value of 17.15% is 143.8% above this benchmark. Historically, Sumitomo Chemical India's own Operating Margin % has ranged from 12.08 to 18.68 over the past decade. While the company's 10-year median is 16.07 vs. the industry median of 7.04, Sumitomo Chemical India 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 Agriculture company?
The median Operating Margin % among Agriculture companies is 7.04, based on 250 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. Sumitomo Chemical India's current Operating Margin % of 17.15% is 143.8% 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 Sumitomo Chemical India and its competitors. For the Agriculture industry, the median Operating Margin % is 7.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Chemical India's current Operating Margin % is 17.15%, which is near median its own 10-year median of 16.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Chemical India stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Chemical India (BOM:542920) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹481.95, compared to a current price of ₹435.00 — trading 9.7% below its estimated fair value. The current Operating Margin % is 17.15%, which is near median its 10-year median of 16.07 and 143.8% above the Agriculture industry median of 7.04. Sumitomo Chemical India's overall GF Score™ is 87/100 with 2 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 Sumitomo Chemical India (BOM:542920), the current Operating Margin % is 17.15% 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 Sumitomo Chemical India (BOM:542920) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Chemical India stock appears to be undervalued.
The current stock price of ₹435.00 is trading 9.7% below its estimated GF Value™ of ₹481.95.
GuruFocus considers Sumitomo Chemical India to be Modestly Undervalued.
Key valuation signals for BOM:542920:
Operating Margin %: 17.15% (near median its 10-year median of 16.07)
GF Value™: ₹481.95 vs. price of ₹435.00 (9.7% below fair value)
Industry Position: 143.8% above the Agriculture median (#27 of 250)
No single metric tells the full story. See the BOM:542920 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Chemical India Ltd is engaged in the manufacturing and sales of household insecticides, agricultural pesticides, crop protection, grain fumigation, rodent control, biopesticides, public health insecticides, environmental health, professional pest control and feed additives, and animal nutrition products. The group operates in only one reportable segment namely Agro-chemicals. Geographically, it derives a majority of its revenue from its business in India, and the rest from Brazil, Japan, and other markets.
87GF 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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