Hoechst PakistanKAR:HPL +0.08%86 Operating Margin % is 17.66% as of Mar. 2026, which is 90% above its 10-year median of 9.30. GuruFocus rates KAR:HPL with a GF Score™ of 86/100 and a GF Value™ of ₨3,253.76 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 955 Drug Manufacturers companies, Hoechst Pakistan ranks better than 76.86% on this metric.
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.
Hoechst Pakistan Operating Margin % Related Terms
Hoechst Pakistan Operating Margin % Historical Data
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The historical data trend for Hoechst Pakistan'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:HPL vs LLY, JNJ, ABBV: Operating Margin % Comparison
For the Drug Manufacturers - General subindustry, Hoechst Pakistan'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.
Hoechst Pakistan Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Hoechst Pakistan's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hoechst Pakistan'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.
Hoechst Pakistan's Operating Margin % for the fiscal year that ended in Dec. 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.
Hoechst Pakistan (KAR:HPL) has a Operating Margin % of 17.66% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Hoechst Pakistan and its competitors. This is 90% above median its historical median of 9.30. Over the past decade, Hoechst Pakistan's Operating Margin % has ranged from 4.52 to 17.28. According to the industry distribution chart, Hoechst Pakistan ranks #221 out of 955 companies in the Drug Manufacturers industry, placing it in the top 23.1%.
Is Hoechst Pakistan's Operating Margin % too high?
Hoechst Pakistan's current Operating Margin % of 17.66% is 90% above median its 10-year median of 9.30. Over the past 10 years, this metric has ranged from a low of 4.52 to a high of 17.28. The Drug Manufacturers industry median Operating Margin % is 7.45. Hoechst Pakistan's value of 17.66% is 137% above this industry median. Based on the distribution chart, Hoechst Pakistan ranks #221 out of 955 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Hoechst Pakistan has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hoechst Pakistan's Operating Margin % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Hoechst Pakistan ranks #221 out of 955 companies for Operating Margin %. This places Hoechst Pakistan in the top 23% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.45. Hoechst Pakistan's value of 17.66% is 137% above this benchmark. Historically, Hoechst Pakistan's own Operating Margin % has ranged from 4.52 to 17.28 over the past decade. While the company's 10-year median is 9.30 vs. the industry median of 7.45, Hoechst Pakistan 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.45, based on 955 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. Hoechst Pakistan's current Operating Margin % of 17.66% is 137% 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 Hoechst Pakistan and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hoechst Pakistan's current Operating Margin % is 17.66%, which is 90% above median its own 10-year median of 9.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hoechst Pakistan stock overvalued right now?
Based on GuruFocus' analysis, Hoechst Pakistan (KAR:HPL) is currently considered Modestly Overvalued. The stock's GF Value™ is ₨3,253.76, compared to a current price of ₨4,015.00 — trading 23.4% above its estimated fair value. The current Operating Margin % is 17.66%, which is 90% above median its 10-year median of 9.30 and 137% above the Drug Manufacturers industry median of 7.45. Hoechst Pakistan's overall GF Score™ is 86/100 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 Hoechst Pakistan (KAR:HPL), the current Operating Margin % is 17.66% 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 Hoechst Pakistan (KAR:HPL) Overvalued in 2026?
Based on GuruFocus' analysis, Hoechst Pakistan stock appears to be overvalued.
The current stock price of ₨4,015.00 is trading 23.4% above its estimated GF Value™ of ₨3,253.76.
GuruFocus considers Hoechst Pakistan to be Modestly Overvalued.
Key valuation signals for KAR:HPL:
Operating Margin %: 17.66% (90% above median its 10-year median of 9.30)
GF Value™: ₨3,253.76 vs. price of ₨4,015.00 (23.4% above fair value)
Industry Position: 137% above the Drug Manufacturers median (#221 of 955)
No single metric tells the full story. See the KAR:HPL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hoechst Pakistan Ltd is a healthcare company of Pakistan, focused on patient needs and engaged in the manufacturing, promotion, and sale of pharmaceutical and vaccines. The company engages in the manufacturing, selling and trading of pharmaceutical and related products.
86GF Score
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