Millat TractorsKAR:MTL 78 Operating Margin % is 29.64% as of Mar. 2026, which is 63% above its 10-year median of 18.24. GuruFocus rates KAR:MTL with a GF Score™ of 78/100 and a GF Value™ of ₨211.73 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 209 Farm & Heavy Construction Machinery companies, Millat Tractors ranks better than 99.52% on this metric.
Millat Tractors Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Millat Tractors's Operating Margin % or its related term are showing as below:
KAR:MTL'
s Operating Margin % Range Over the Past 10 Years
Min: 13.55 Med: 18.24 Max: 25.42
Current: 25.42
KAR:MTL's Operating Margin % is ranked better than 99.52% of 209
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 6.78
vs KAR:MTL: 25.42
Millat Tractors's 5-Year Average Operating Margin % Growth Rate was 5.10% per year.
Millat Tractors (KAR:MTL) 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.
Millat Tractors Operating Margin % Related Terms
Millat Tractors Operating Margin % Historical Data
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The historical data trend for Millat Tractors'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:MTL vs CAT, DE, PCAR: Operating Margin % Comparison
For the Farm & Heavy Construction Machinery subindustry, Millat Tractors'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.
Millat Tractors Operating Margin % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Millat Tractors's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Millat Tractors'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.
Millat Tractors'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.
Millat Tractors (KAR:MTL) has a Operating Margin % of 29.64% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Millat Tractors and its competitors. This is 63% above median its historical median of 18.24. Over the past decade, Millat Tractors' Operating Margin % has ranged from 13.55 to 25.42. According to the industry distribution chart, Millat Tractors ranks #1 out of 209 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 0.5%.
Is Millat Tractors' Operating Margin % too high?
Millat Tractors' current Operating Margin % of 29.64% is 63% above median its 10-year median of 18.24. Over the past 10 years, this metric has ranged from a low of 13.55 to a high of 25.42. The Farm & Heavy Construction Machinery industry median Operating Margin % is 6.78. Millat Tractors' value of 29.64% is 337.2% above this industry median. Based on the distribution chart, Millat Tractors ranks #1 out of 209 companies in the Farm & Heavy Construction Machinery industry, which is in the top quartile — a strong position relative to peers. Overall, Millat Tractors has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Millat Tractors' Operating Margin % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Millat Tractors ranks #1 out of 209 companies for Operating Margin %. This places Millat Tractors in the top 1% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.78. Millat Tractors' value of 29.64% is 337.2% above this benchmark. Historically, Millat Tractors' own Operating Margin % has ranged from 13.55 to 25.42 over the past decade. While the company's 10-year median is 18.24 vs. the industry median of 6.78, Millat Tractors 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 Farm & Heavy Construction Machinery company?
The median Operating Margin % among Farm & Heavy Construction Machinery companies is 6.78, based on 209 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. Millat Tractors's current Operating Margin % of 29.64% is 337.2% 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 Millat Tractors and its competitors. For the Farm & Heavy Construction Machinery industry, the median Operating Margin % is 6.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Millat Tractors's current Operating Margin % is 29.64%, which is 63% above median its own 10-year median of 18.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Millat Tractors stock overvalued right now?
Based on GuruFocus' analysis, Millat Tractors (KAR:MTL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨211.73, compared to a current price of ₨310.22 — trading 46.5% above its estimated fair value. The current Operating Margin % is 29.64%, which is 63% above median its 10-year median of 18.24 and 337.2% above the Farm & Heavy Construction Machinery industry median of 6.78. Millat Tractors' overall GF Score™ is 78/100 with 5 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 Millat Tractors (KAR:MTL), the current Operating Margin % is 29.64% 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 Millat Tractors (KAR:MTL) Overvalued in 2026?
Based on GuruFocus' analysis, Millat Tractors stock appears to be overvalued.
The current stock price of ₨310.22 is trading 46.5% above its estimated GF Value™ of ₨211.73.
GuruFocus considers Millat Tractors to be Significantly Overvalued.
Key valuation signals for KAR:MTL:
Operating Margin %: 29.64% (63% above median its 10-year median of 18.24)
GF Value™: ₨211.73 vs. price of ₨310.22 (46.5% above fair value)
Industry Position: 337.2% above the Farm & Heavy Construction Machinery median (#1 of 209)
No single metric tells the full story. See the KAR:MTL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Millat Tractors Ltd operates in the automobile sector. It is engaged in assembling and manufacturing of agricultural tractors, implements and multi-application products. The Company is also involved in the sale, implementation and support of IFS applications in Pakistan and abroad. The company's operating segment includes Tractors; Tractor components; Castings and Others. It generates maximum revenue from the Tractors segment. The tractor components segment is engaged in the business of manufacturing automotive, agricultural and industrial vehicle parts and components.
78GF Score
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