Pak ElektronKAR:PAEL +2.35%83 Operating Margin % is 11.62% as of Mar. 2026, which is 10% below its 10-year median of 12.97. GuruFocus rates KAR:PAEL with a GF Score™ of 83/100 and a GF Value™ of ₨39.98 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 2,472 Hardware companies, Pak Elektron ranks better than 82.12% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Pak Elektron's Operating Income for the
three
months ended in Mar. 2026 was ₨2,349 Mil. Pak Elektron's Revenue for the
three
months ended in Mar. 2026 was ₨20,223 Mil. Therefore, Pak Elektron's Operating Margin % for the quarter that ended in Mar. 2026 was 11.62%.
Good Sign:
Pak Elektron Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Pak Elektron's Operating Margin % or its related term are showing as below:
KAR:PAEL'
s Operating Margin % Range Over the Past 10 Years
Min: 7.8 Med: 12.97 Max: 20.81
Current: 12.71
KAR:PAEL's Operating Margin % is ranked better than 82.12% of 2472
companies
in the Hardware industry
Industry Median: 3.81
vs KAR:PAEL: 12.71
Pak Elektron's 5-Year Average Operating Margin % Growth Rate was 9.10% per year.
Pak Elektron's Operating Income for the
three
months ended in Mar. 2026 was ₨2,349 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ₨8,803 Mil.
Pak Elektron (KAR:PAEL) 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.
Pak Elektron Operating Margin % Related Terms
Pak Elektron Operating Margin % Historical Data
* Premium members only.
The historical data trend for Pak Elektron'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.
For the Consumer Electronics subindustry, Pak Elektron'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.
Pak Elektron Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Pak Elektron's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Pak Elektron'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.
Pak Elektron'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.
Pak Elektron (KAR:PAEL) has a Operating Margin % of 11.62% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Pak Elektron and its competitors. This is 10% below median its historical median of 12.97. Over the past decade, Pak Elektron's Operating Margin % has ranged from 7.80 to 20.81. According to the industry distribution chart, Pak Elektron ranks #442 out of 2472 companies in the Hardware industry, placing it in the top 17.9%.
Is Pak Elektron's Operating Margin % too high?
Pak Elektron's current Operating Margin % of 11.62% is 10% below median its 10-year median of 12.97. Over the past 10 years, this metric has ranged from a low of 7.80 to a high of 20.81. The Hardware industry median Operating Margin % is 3.81. Pak Elektron's value of 11.62% is 205% above this industry median. Based on the distribution chart, Pak Elektron ranks #442 out of 2472 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Pak Elektron has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Pak Elektron's Operating Margin % compare to AAPL?
According to the Hardware industry distribution chart, Pak Elektron ranks #442 out of 2472 companies for Operating Margin %. This places Pak Elektron in the top 18% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.81. Pak Elektron's value of 11.62% is 205% above this benchmark. Historically, Pak Elektron's own Operating Margin % has ranged from 7.80 to 20.81 over the past decade. While the company's 10-year median is 12.97 vs. the industry median of 3.81, Pak Elektron 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.81, based on 2,472 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. Pak Elektron's current Operating Margin % of 11.62% is 205% 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 Pak Elektron and its competitors. For the Hardware industry, the median Operating Margin % is 3.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pak Elektron's current Operating Margin % is 11.62%, which is 10% below median its own 10-year median of 12.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pak Elektron stock overvalued right now?
Based on GuruFocus' analysis, Pak Elektron (KAR:PAEL) is currently considered Modestly Overvalued. The stock's GF Value™ is ₨39.98, compared to a current price of ₨44.49 — trading 11.3% above its estimated fair value. The current Operating Margin % is 11.62%, which is 10% below median its 10-year median of 12.97 and 205% above the Hardware industry median of 3.81. Pak Elektron's overall GF Score™ is 83/100 with 4 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 Pak Elektron (KAR:PAEL), the current Operating Margin % is 11.62% 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 Pak Elektron (KAR:PAEL) Overvalued in 2026?
Based on GuruFocus' analysis, Pak Elektron stock appears to be overvalued.
The current stock price of ₨44.49 is trading 11.3% above its estimated GF Value™ of ₨39.98.
GuruFocus considers Pak Elektron to be Modestly Overvalued.
Key valuation signals for KAR:PAEL:
Operating Margin %: 11.62% (10% below median its 10-year median of 12.97)
GF Value™: ₨39.98 vs. price of ₨44.49 (11.3% above fair value)
Industry Position: 205% above the Hardware median (#442 of 2472)
No single metric tells the full story. See the KAR:PAEL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pak Elektron Ltd is a company that engages in the manufacturing and sale of electrical capital goods and domestic appliances. It operates through the following divisions: Power and Appliances: The Power division manufactures and distributes transformers, switchgear, energy meters, and engineering, procurement, and construction (EPC) contracting; The Appliances division manufactures, assembles, and distributes refrigerators, deep freezers, air conditioners, microwave ovens, LED televisions, washing machines, water dispensers, and other domestic appliances. The group generates maximum revenue from the Power division.
83GF Score
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