Chemfab AlkaliesNSE:CHEMFAB -0.69%75 Operating Margin % is 0.76% as of Mar. 2026, which is 94% below its 10-year median of 12.96. GuruFocus rates NSE:CHEMFAB with a GF Score™ of 75/100 and a GF Value™ of ₹554.09 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 1,580 Chemicals companies, Chemfab Alkalies ranks worse than 78.8% 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.
Chemfab Alkalies Operating Margin % Related Terms
Chemfab Alkalies Operating Margin % Historical Data
* Premium members only.
The historical data trend for Chemfab Alkalies'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:CHEMFAB vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Chemfab Alkalies'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.
Chemfab Alkalies Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Chemfab Alkalies's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Chemfab Alkalies'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.
Chemfab Alkalies'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.
Chemfab Alkalies (NSE:CHEMFAB) has a Operating Margin % of 0.76% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Chemfab Alkalies and its competitors. This is 94% below median its historical median of 12.96. According to the industry distribution chart, Chemfab Alkalies ranks #1245 out of 1580 companies in the Chemicals industry, placing it in the top 78.8%.
Is Chemfab Alkalies' Operating Margin % too high?
Chemfab Alkalies' current Operating Margin % of 0.76% is 94% below median its 10-year median of 12.96. The Chemicals industry median Operating Margin % is 6.02. Chemfab Alkalies' value of 0.76% is 87.4% below this industry median. Based on the distribution chart, Chemfab Alkalies ranks #1245 out of 1580 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Chemfab Alkalies has a GF Score™ of 75/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Chemfab Alkalies' Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Chemfab Alkalies ranks #1245 out of 1580 companies for Operating Margin %. This places Chemfab Alkalies in the lower half of its industry. The industry median Operating Margin % is 6.02. Chemfab Alkalies' value of 0.76% is 87.4% below this benchmark. While the company's 10-year median is 12.96 vs. the industry median of 6.02, Chemfab Alkalies has consistently been below 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 6.02, based on 1,580 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. Chemfab Alkalies's current Operating Margin % of 0.76% is 87.4% below 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 Chemfab Alkalies and its competitors. For the Chemicals industry, the median Operating Margin % is 6.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chemfab Alkalies's current Operating Margin % is 0.76%, which is 94% below median its own 10-year median of 12.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chemfab Alkalies stock overvalued right now?
Based on GuruFocus' analysis, Chemfab Alkalies (NSE:CHEMFAB) is currently considered Possible Value Trap. The stock's GF Value™ is ₹554.09, compared to a current price of ₹369.20 — trading 33.4% below its estimated fair value. The current Operating Margin % is 0.76%, which is 94% below median its 10-year median of 12.96 and 87.4% below the Chemicals industry median of 6.02. Chemfab Alkalies' overall GF Score™ is 75/100 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 Chemfab Alkalies (NSE:CHEMFAB), the current Operating Margin % is 0.76% 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 Chemfab Alkalies (NSE:CHEMFAB) Overvalued in 2026?
Based on GuruFocus' analysis, Chemfab Alkalies stock appears to be undervalued.
The current stock price of ₹369.20 is trading 33.4% below its estimated GF Value™ of ₹554.09.
GuruFocus considers Chemfab Alkalies to be Possible Value Trap.
Key valuation signals for NSE:CHEMFAB:
Operating Margin %: 0.76% (94% below median its 10-year median of 12.96)
GF Value™: ₹554.09 vs. price of ₹369.20 (33.4% below fair value)
Industry Position: 87.4% below the Chemicals median (#1245 of 1580)
No single metric tells the full story. See the NSE:CHEMFAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chemfab Alkalies Ltd is a chemical company. It is engaged in the manufacturing of Caustic Soda Lye, Caustic Soda Flakes, Hydrogen Gas, Liquid Chlorine, Hydrochloric Acid and Sodium Hypochlorite or Bleach Liquor. The company's operating segment includes Chemicals and related Products/Services and PVC-O Pipes. It generates maximum revenue from the Chemicals and related Products/Services segment. Geographically, it derives a majority of its revenue from India.
75GF Score
Get the complete analysis for NSE:CHEMFAB
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:CHEMFAB has been successfully added to your 
