Gul Ahmed Textile MillsKAR:GATM +5.40%75 Operating Margin % is 3.16% as of Mar. 2026, which is 56% below its 10-year median of 7.20. GuruFocus rates KAR:GATM with a GF Score™ of 75/100 and a GF Value™ of ₨23.53 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,042 Manufacturing - Apparel & Accessories companies, Gul Ahmed Textile Mills ranks better than 55.09% on this metric.
Gul Ahmed Textile Mills Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Gul Ahmed Textile Mills's Operating Margin % or its related term are showing as below:
KAR:GATM'
s Operating Margin % Range Over the Past 10 Years
Min: 3.05 Med: 7.2 Max: 12.38
Current: 5.06
KAR:GATM's Operating Margin % is ranked better than 55.09% of 1042
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 4.085
vs KAR:GATM: 5.06
Gul Ahmed Textile Mills's 5-Year Average Operating Margin % Growth Rate was 10.20% per year.
Gul Ahmed Textile Mills (KAR:GATM) 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.
Gul Ahmed Textile Mills Operating Margin % Related Terms
Gul Ahmed Textile Mills Operating Margin % Historical Data
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The historical data trend for Gul Ahmed Textile Mills'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.
Gul Ahmed Textile Mills Operating Margin % Competitor Comparison
For the Textile Manufacturing subindustry, Gul Ahmed Textile Mills'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.
Gul Ahmed Textile Mills Operating Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Gul Ahmed Textile Mills's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Gul Ahmed Textile Mills's Operating Margin % falls into.
Gul Ahmed Textile Mills 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.
Gul Ahmed Textile Mills'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.
Gul Ahmed Textile Mills (KAR:GATM) has a Operating Margin % of 3.16% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Gul Ahmed Textile Mills and its competitors. This is 56% below median its historical median of 7.20. Over the past decade, Gul Ahmed Textile Mills' Operating Margin % has ranged from 3.05 to 12.38. According to the industry distribution chart, Gul Ahmed Textile Mills ranks #468 out of 1042 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 44.9%.
Is Gul Ahmed Textile Mills' Operating Margin % too high?
Gul Ahmed Textile Mills' current Operating Margin % of 3.16% is 56% below median its 10-year median of 7.20. Over the past 10 years, this metric has ranged from a low of 3.05 to a high of 12.38. The Manufacturing - Apparel & Accessories industry median Operating Margin % is 4.09. Gul Ahmed Textile Mills' value of 3.16% is 22.6% below this industry median. Based on the distribution chart, Gul Ahmed Textile Mills ranks #468 out of 1042 companies in the Manufacturing - Apparel & Accessories industry, which is above the industry midpoint. Overall, Gul Ahmed Textile Mills has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Gul Ahmed Textile Mills' Operating Margin % compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Gul Ahmed Textile Mills ranks #468 out of 1042 companies for Operating Margin %. This puts Gul Ahmed Textile Mills in the upper half of its industry. The industry median Operating Margin % is 4.09. Gul Ahmed Textile Mills' value of 3.16% is 22.6% below this benchmark. Historically, Gul Ahmed Textile Mills' own Operating Margin % has ranged from 3.05 to 12.38 over the past decade. While the company's 10-year median is 7.20 vs. the industry median of 4.09, Gul Ahmed Textile Mills 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 Manufacturing - Apparel & Accessories company?
The median Operating Margin % among Manufacturing - Apparel & Accessories companies is 4.09, based on 1,042 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. Gul Ahmed Textile Mills's current Operating Margin % of 3.16% is 22.6% 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 Gul Ahmed Textile Mills and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Operating Margin % is 4.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gul Ahmed Textile Mills's current Operating Margin % is 3.16%, which is 56% below median its own 10-year median of 7.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gul Ahmed Textile Mills stock overvalued right now?
Based on GuruFocus' analysis, Gul Ahmed Textile Mills (KAR:GATM) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨23.53, compared to a current price of ₨30.85 — trading 31.1% above its estimated fair value. The current Operating Margin % is 3.16%, which is 56% below median its 10-year median of 7.20 and 22.6% below the Manufacturing - Apparel & Accessories industry median of 4.09. Gul Ahmed Textile Mills' overall GF Score™ is 75/100 with 6 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 Gul Ahmed Textile Mills (KAR:GATM), the current Operating Margin % is 3.16% 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 Gul Ahmed Textile Mills (KAR:GATM) Overvalued in 2026?
Based on GuruFocus' analysis, Gul Ahmed Textile Mills stock appears to be overvalued.
The current stock price of ₨30.85 is trading 31.1% above its estimated GF Value™ of ₨23.53.
GuruFocus considers Gul Ahmed Textile Mills to be Significantly Overvalued.
Key valuation signals for KAR:GATM:
Operating Margin %: 3.16% (56% below median its 10-year median of 7.20)
GF Value™: ₨23.53 vs. price of ₨30.85 (31.1% above fair value)
Industry Position: 22.6% below the Manufacturing - Apparel & Accessories median (#468 of 1042)
No single metric tells the full story. See the KAR:GATM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gul Ahmed Textile Mills Ltd is engaged in the manufacturing and sale of textile products. The company operates in three segments including Spinning that produces different qualities of yarn using both natural and artificial fibers; Home Textiles that produces different types and qualities of products falling under the definition of home textile; and Others include Weaving, Fiber Bleaching, Knitting, Apparel, Yarn dyeing and Dyed yarn fabric etc. The majority of the revenue is derived from Home Textiles segment.
75GF Score
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