Mughal Iron & Steel Industries (KAR:MUGHAL) 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.
Mughal Iron & Steel Industries Operating Margin % Related Terms
Mughal Iron & Steel Industries Operating Margin % Historical Data
* 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.
Mughal Iron & Steel Industries Operating Margin % Chart
KAR:MUGHAL vs NUE, STLD, RS: Operating Margin % Comparison
For the Steel subindustry, Mughal Iron & Steel Industries'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.
Mughal Iron & Steel Industries Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Mughal Iron & Steel Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Mughal Iron & Steel Industries's Operating Margin % falls into.
Mughal Iron & Steel Industries 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.
* 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.
Mughal Iron & Steel Industries (KAR:MUGHAL) has a Operating Margin % of 7.02% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Mughal Iron & Steel Industries and its competitors. This is 17% below median its historical median of 8.46. Over the past decade, Mughal Iron & Steel Industries' Operating Margin % has ranged from 7.19 to 13.20. According to the industry distribution chart, Mughal Iron & Steel Industries ranks #125 out of 615 companies in the Steel industry, placing it in the top 20.3%.
Is Mughal Iron & Steel Industries' Operating Margin % too high?
Mughal Iron & Steel Industries' current Operating Margin % of 7.02% is 17% below median its 10-year median of 8.46. Over the past 10 years, this metric has ranged from a low of 7.19 to a high of 13.20. The Steel industry median Operating Margin % is 2.99. Mughal Iron & Steel Industries' value of 7.02% is 134.8% above this industry median. Based on the distribution chart, Mughal Iron & Steel Industries ranks #125 out of 615 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Mughal Iron & Steel Industries has a GF Score™ of 89/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Mughal Iron & Steel Industries' Operating Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Mughal Iron & Steel Industries ranks #125 out of 615 companies for Operating Margin %. This places Mughal Iron & Steel Industries in the top 20% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 2.99. Mughal Iron & Steel Industries' value of 7.02% is 134.8% above this benchmark. Historically, Mughal Iron & Steel Industries' own Operating Margin % has ranged from 7.19 to 13.20 over the past decade. While the company's 10-year median is 8.46 vs. the industry median of 2.99, Mughal Iron & Steel Industries 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 Steel company?
The median Operating Margin % among Steel companies is 2.99, based on 615 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. Mughal Iron & Steel Industries's current Operating Margin % of 7.02% is 134.8% 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 Mughal Iron & Steel Industries and its competitors. For the Steel industry, the median Operating Margin % is 2.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mughal Iron & Steel Industries's current Operating Margin % is 7.02%, which is 17% below median its own 10-year median of 8.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mughal Iron & Steel Industries stock overvalued right now?
Based on GuruFocus' analysis, Mughal Iron & Steel Industries (KAR:MUGHAL) is currently considered Modestly Overvalued. The stock's GF Value™ is ₨69.86, compared to a current price of ₨86.49 — trading 23.8% above its estimated fair value. The current Operating Margin % is 7.02%, which is 17% below median its 10-year median of 8.46 and 134.8% above the Steel industry median of 2.99. Mughal Iron & Steel Industries' overall GF Score™ is 89/100 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 Mughal Iron & Steel Industries (KAR:MUGHAL), the current Operating Margin % is 7.02% 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 Mughal Iron & Steel Industries (KAR:MUGHAL) Overvalued in 2026?
Based on GuruFocus' analysis, Mughal Iron & Steel Industries stock appears to be overvalued.
The current stock price of ₨86.49 is trading 23.8% above its estimated GF Value™ of ₨69.86.
GuruFocus considers Mughal Iron & Steel Industries to be Modestly Overvalued.
Key valuation signals for KAR:MUGHAL:
Operating Margin %: 7.02% (17% below median its 10-year median of 8.46)
GF Value™: ₨69.86 vs. price of ₨86.49 (23.8% above fair value)
Industry Position: 134.8% above the Steel median (#125 of 615)
No single metric tells the full story. See the KAR:MUGHAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mughal Iron & Steel Industries Business Description
Mughal Iron & Steel Industries Ltd is engaged in the manufacturing and trading of mild steel products. The operating segments of the company are Ferrous, Non-Ferrous, and the Energy segment. The company's main products involve Steel re-bars (G60 / Mughal Supreme), Girders, Billets, Copper ingots, and Copper granules.
89GF Score
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