D G Khan CementKAR:DGKC +1.52%59 Operating Margin % is 19.14% as of Mar. 2026, which is 38% above its 10-year median of 13.82. GuruFocus rates KAR:DGKC with a GF Score™ of 59/100 and a GF Value™ of ₨93.07 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 404 Building Materials companies, D G Khan Cement ranks better than 85.4% on this metric.
D G Khan Cement (KAR:DGKC) 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.
D G Khan Cement Operating Margin % Related Terms
D G Khan Cement Operating Margin % Historical Data
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The historical data trend for D G Khan Cement'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.
KAR:DGKC vs CRH, VMC, MLM: Operating Margin % Comparison
For the Building Materials subindustry, D G Khan Cement'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.
D G Khan Cement Operating Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, D G Khan Cement's Operating Margin % distribution charts can be found below:
* The bar in red indicates where D G Khan Cement'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.
D G Khan Cement's Operating Margin % for the fiscal year that ended in Jun. 2025 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.
D G Khan Cement (KAR:DGKC) has a Operating Margin % of 19.14% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on D G Khan Cement and its competitors. This is 38% above median its historical median of 13.82. According to the industry distribution chart, D G Khan Cement ranks #59 out of 404 companies in the Building Materials industry, placing it in the top 14.6%.
Is D G Khan Cement's Operating Margin % too high?
D G Khan Cement's current Operating Margin % of 19.14% is 38% above median its 10-year median of 13.82. The Building Materials industry median Operating Margin % is 7.65. D G Khan Cement's value of 19.14% is 150.2% above this industry median. Based on the distribution chart, D G Khan Cement ranks #59 out of 404 companies in the Building Materials industry, which is in the top quartile — a strong position relative to peers. Overall, D G Khan Cement has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does D G Khan Cement's Operating Margin % compare to CRH and VMC?
According to the Building Materials industry distribution chart, D G Khan Cement ranks #59 out of 404 companies for Operating Margin %. This places D G Khan Cement in the top 15% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.65. D G Khan Cement's value of 19.14% is 150.2% above this benchmark. While the company's 10-year median is 13.82 vs. the industry median of 7.65, D G Khan Cement 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 Building Materials company?
The median Operating Margin % among Building Materials companies is 7.65, based on 404 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. D G Khan Cement's current Operating Margin % of 19.14% is 150.2% 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 D G Khan Cement and its competitors. For the Building Materials industry, the median Operating Margin % is 7.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. D G Khan Cement's current Operating Margin % is 19.14%, which is 38% above median its own 10-year median of 13.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is D G Khan Cement stock overvalued right now?
Based on GuruFocus' analysis, D G Khan Cement (KAR:DGKC) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨93.07, compared to a current price of ₨221.94 — trading 138.5% above its estimated fair value. The current Operating Margin % is 19.14%, which is 38% above median its 10-year median of 13.82 and 150.2% above the Building Materials industry median of 7.65. D G Khan Cement's overall GF Score™ is 59/100 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 D G Khan Cement (KAR:DGKC), the current Operating Margin % is 19.14% 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 D G Khan Cement (KAR:DGKC) Overvalued in 2026?
Based on GuruFocus' analysis, D G Khan Cement stock appears to be overvalued.
The current stock price of ₨221.94 is trading 138.5% above its estimated GF Value™ of ₨93.07.
GuruFocus considers D G Khan Cement to be Significantly Overvalued.
Key valuation signals for KAR:DGKC:
Operating Margin %: 19.14% (38% above median its 10-year median of 13.82)
GF Value™: ₨93.07 vs. price of ₨221.94 (138.5% above fair value)
Industry Position: 150.2% above the Building Materials median (#59 of 404)
No single metric tells the full story. See the KAR:DGKC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
D G Khan Cement Ltd is engaged in the production and sale of Clinker, Ordinary Portland and Sulphate Resistant Cement. It has four cement plants, two plants; located at Dera Ghazi Khan, one in Khairpur District, Chakwal, and one in Hub District, Lasbela. Its products are distributed across the Pakistan market. The company has three operating segments, which include the Cement segment: Production and sale of clinker, ordinary portland, and sulphate resistant cement, the Packaging segment: Manufacture and supply of paper products and packing material, the Dairy segment: Production and sale of raw milk.
59GF Score
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