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.
Chemcon Speciality Chemicals Operating Margin % Related Terms
Chemcon Speciality Chemicals 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.
NSE:CHEMCON vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Chemcon Speciality Chemicals'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.
Chemcon Speciality Chemicals Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Chemcon Speciality Chemicals's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Chemcon Speciality Chemicals'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.
* 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.
Chemcon Speciality Chemicals (NSE:CHEMCON) has a Operating Margin % of 7.49% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Chemcon Speciality Chemicals and its competitors. This is 64% below median its historical median of 20.88. Over the past decade, Chemcon Speciality Chemicals' Operating Margin % has ranged from 6.24 to 31.12. According to the industry distribution chart, Chemcon Speciality Chemicals ranks #668 out of 1584 companies in the Chemicals industry, placing it in the top 42.2%.
Is Chemcon Speciality Chemicals' Operating Margin % too high?
Chemcon Speciality Chemicals' current Operating Margin % of 7.49% is 64% below median its 10-year median of 20.88. Over the past 10 years, this metric has ranged from a low of 6.24 to a high of 31.12. The Chemicals industry median Operating Margin % is 6.03. Chemcon Speciality Chemicals' value of 7.49% is 24.3% above this industry median. Based on the distribution chart, Chemcon Speciality Chemicals ranks #668 out of 1584 companies in the Chemicals industry, which is above the industry midpoint. Overall, Chemcon Speciality Chemicals has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Chemcon Speciality Chemicals' Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Chemcon Speciality Chemicals ranks #668 out of 1584 companies for Operating Margin %. This puts Chemcon Speciality Chemicals in the upper half of its industry. The industry median Operating Margin % is 6.03. Chemcon Speciality Chemicals' value of 7.49% is 24.3% above this benchmark. Historically, Chemcon Speciality Chemicals' own Operating Margin % has ranged from 6.24 to 31.12 over the past decade. While the company's 10-year median is 20.88 vs. the industry median of 6.03, Chemcon Speciality Chemicals 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.03, based on 1,584 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. Chemcon Speciality Chemicals's current Operating Margin % of 7.49% is 24.3% 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 Chemcon Speciality Chemicals and its competitors. For the Chemicals industry, the median Operating Margin % is 6.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chemcon Speciality Chemicals's current Operating Margin % is 7.49%, which is 64% below median its own 10-year median of 20.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chemcon Speciality Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Chemcon Speciality Chemicals (NSE:CHEMCON) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹223.40, compared to a current price of ₹189.10 — trading 15.4% below its estimated fair value. The current Operating Margin % is 7.49%, which is 64% below median its 10-year median of 20.88 and 24.3% above the Chemicals industry median of 6.03. Chemcon Speciality Chemicals' overall GF Score™ is 77/100 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 Chemcon Speciality Chemicals (NSE:CHEMCON), the current Operating Margin % is 7.49% 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 Chemcon Speciality Chemicals (NSE:CHEMCON) Overvalued in 2026?
Based on GuruFocus' analysis, Chemcon Speciality Chemicals stock appears to be undervalued.
The current stock price of ₹189.10 is trading 15.4% below its estimated GF Value™ of ₹223.40.
GuruFocus considers Chemcon Speciality Chemicals to be Modestly Undervalued.
Key valuation signals for NSE:CHEMCON:
Operating Margin %: 7.49% (64% below median its 10-year median of 20.88)
GF Value™: ₹223.40 vs. price of ₹189.10 (15.4% below fair value)
Industry Position: 24.3% above the Chemicals median (#668 of 1584)
No single metric tells the full story. See the NSE:CHEMCON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chemcon Speciality Chemicals Ltd manufactures specialized chemicals including Hexamethyldisilazane and Chloromethyl Isopropyl Carbonate, which are mainly used in the pharmaceutical industry. The company also produce inorganic bromides such as Calcium Bromide, Zinc Bromide, and Sodium Bromide, which are used as completion fluids in the oilfields industry. The company's product lines include Oilfield Chemicals, Pharmaceutical Chemicals, Silanes, and Contract Manufacturing. It operates in India and internationally, with the majority of its revenue coming from India. In addition to the sale of products, the company also generates revenue from the sale of services.
77GF Score
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