AAVAS FinanciersNSE:AAVAS +2.09%83 Operating Margin % is 23.86% as of Mar. 2026, which is 2% below its 10-year median of 24.31. GuruFocus rates NSE:AAVAS with a GF Score™ of 83/100 and a GF Value™ of ₹2,161.40 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 48 Banks companies, AAVAS Financiers ranks better than 62.5% 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.
AAVAS Financiers Operating Margin % Related Terms
AAVAS Financiers Operating Margin % Historical Data
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The historical data trend for AAVAS Financiers'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.
NSE:AAVAS vs RKT, FNMA, PFSI: Operating Margin % Comparison
For the Mortgage Finance subindustry, AAVAS Financiers'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.
AAVAS Financiers Operating Margin % vs Banks Industry
For the Banks industry and Financial Services sector, AAVAS Financiers's Operating Margin % distribution charts can be found below:
* The bar in red indicates where AAVAS Financiers'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.
AAVAS Financiers's Operating Margin % for the fiscal year that ended in Mar. 2026 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.
AAVAS Financiers (NSE:AAVAS) has a Operating Margin % of 23.86% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on AAVAS Financiers and its competitors. This is near median its historical median of 24.31. Over the past decade, AAVAS Financiers' Operating Margin % has ranged from 13.35 to 27.18. According to the industry distribution chart, AAVAS Financiers ranks #18 out of 48 companies in the Banks industry, placing it in the top 37.5%.
Is AAVAS Financiers' Operating Margin % too high?
AAVAS Financiers' current Operating Margin % of 23.86% is near median its 10-year median of 24.31. Over the past 10 years, this metric has ranged from a low of 13.35 to a high of 27.18. The Banks industry median Operating Margin % is 18.14. AAVAS Financiers' value of 23.86% is 31.6% above this industry median. Based on the distribution chart, AAVAS Financiers ranks #18 out of 48 companies in the Banks industry, which is above the industry midpoint. Overall, AAVAS Financiers has a GF Score™ of 83/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does AAVAS Financiers' Operating Margin % compare to RKT and FNMA?
According to the Banks industry distribution chart, AAVAS Financiers ranks #18 out of 48 companies for Operating Margin %. This puts AAVAS Financiers in the upper half of its industry. The industry median Operating Margin % is 18.14. AAVAS Financiers' value of 23.86% is 31.6% above this benchmark. Historically, AAVAS Financiers' own Operating Margin % has ranged from 13.35 to 27.18 over the past decade. While the company's 10-year median is 24.31 vs. the industry median of 18.14, AAVAS Financiers 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 Banks company?
The median Operating Margin % among Banks companies is 18.14, based on 48 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. AAVAS Financiers's current Operating Margin % of 23.86% is 31.6% 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 AAVAS Financiers and its competitors. For the Banks industry, the median Operating Margin % is 18.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AAVAS Financiers's current Operating Margin % is 23.86%, which is near median its own 10-year median of 24.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AAVAS Financiers stock overvalued right now?
Based on GuruFocus' analysis, AAVAS Financiers (NSE:AAVAS) is currently considered Possible Value Trap. The stock's GF Value™ is ₹2,161.40, compared to a current price of ₹1,482.60 — trading 31.4% below its estimated fair value. The current Operating Margin % is 23.86%, which is near median its 10-year median of 24.31 and 31.6% above the Banks industry median of 18.14. AAVAS Financiers' overall GF Score™ is 83/100 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 AAVAS Financiers (NSE:AAVAS), the current Operating Margin % is 23.86% 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 AAVAS Financiers (NSE:AAVAS) Overvalued in 2026?
Based on GuruFocus' analysis, AAVAS Financiers stock appears to be undervalued.
The current stock price of ₹1,482.60 is trading 31.4% below its estimated GF Value™ of ₹2,161.40.
GuruFocus considers AAVAS Financiers to be Possible Value Trap.
Key valuation signals for NSE:AAVAS:
Operating Margin %: 23.86% (near median its 10-year median of 24.31)
GF Value™: ₹2,161.40 vs. price of ₹1,482.60 (31.4% below fair value)
Industry Position: 31.6% above the Banks median (#18 of 48)
No single metric tells the full story. See the NSE:AAVAS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AAVAS Financiers Ltd is a housing finance company. The company provides housing loans to customers belonging to the low and middle-income and self-employed segments in suburban and rural India. Its only operating segment is Lending to borrowers. The company's product portfolio includes home loans, land purchases and construction, home improvement loans, home equity, micro, small, and medium enterprise loan, and others. It offers customers loans for the purchase or construction of residential properties and the extension and repair of existing housing units.
83GF Score
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