Deccan CementsNSE:DECCANCE +1.58%60 Operating Margin % is 1.48% as of Mar. 2026, which is 86% below its 10-year median of 10.75. GuruFocus rates NSE:DECCANCE with a GF Score™ of 60/100 and a GF Value™ of ₹535.23 (Fairly Valued). The stock has 4 warning signs investors should review. Among 404 Building Materials companies, Deccan Cements ranks worse than 55.2% on this metric.
Deccan Cements Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -31.7%.
The historical rank and industry rank for Deccan Cements's Operating Margin % or its related term are showing as below:
NSE:DECCANCE'
s Operating Margin % Range Over the Past 10 Years
Min: 1.38 Med: 10.75 Max: 20.19
Current: 6.45
NSE:DECCANCE's Operating Margin % is ranked worse than 55.2% of 404
companies
in the Building Materials industry
Industry Median: 7.65
vs NSE:DECCANCE: 6.45
Deccan Cements's 5-Year Average Operating Margin % Growth Rate was -31.70% per year.
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.
Deccan Cements Operating Margin % Related Terms
Deccan Cements Operating Margin % Historical Data
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The historical data trend for Deccan Cements'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:DECCANCE vs CRH, VMC, MLM: Operating Margin % Comparison
For the Building Materials subindustry, Deccan Cements'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.
Deccan Cements Operating Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Deccan Cements's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Deccan Cements'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.
Deccan Cements'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.
Deccan Cements (NSE:DECCANCE) has a Operating Margin % of 1.48% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Deccan Cements and its competitors. This is 86% below median its historical median of 10.75. Over the past decade, Deccan Cements' Operating Margin % has ranged from 1.38 to 20.19. According to the industry distribution chart, Deccan Cements ranks #223 out of 404 companies in the Building Materials industry, placing it in the top 55.2%.
Is Deccan Cements' Operating Margin % too high?
Deccan Cements' current Operating Margin % of 1.48% is 86% below median its 10-year median of 10.75. Over the past 10 years, this metric has ranged from a low of 1.38 to a high of 20.19. The Building Materials industry median Operating Margin % is 7.65. Deccan Cements' value of 1.48% is 80.7% below this industry median. Based on the distribution chart, Deccan Cements ranks #223 out of 404 companies in the Building Materials industry, which is below the industry midpoint. Overall, Deccan Cements has a GF Score™ of 60/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Deccan Cements' Operating Margin % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Deccan Cements ranks #223 out of 404 companies for Operating Margin %. This places Deccan Cements in the lower half of its industry. The industry median Operating Margin % is 7.65. Deccan Cements' value of 1.48% is 80.7% below this benchmark. Historically, Deccan Cements' own Operating Margin % has ranged from 1.38 to 20.19 over the past decade. While the company's 10-year median is 10.75 vs. the industry median of 7.65, Deccan Cements 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 Building Materials company?
The median Operating Margin % among Building Materials companies is 7.65, based on 404 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. Deccan Cements's current Operating Margin % of 1.48% is 80.7% 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 Deccan Cements and its competitors. For the Building Materials industry, the median Operating Margin % is 7.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Deccan Cements's current Operating Margin % is 1.48%, which is 86% below median its own 10-year median of 10.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Deccan Cements stock overvalued right now?
Based on GuruFocus' analysis, Deccan Cements (NSE:DECCANCE) is currently considered Fairly Valued. The stock's GF Value™ is ₹535.23, compared to a current price of ₹590.75 — trading 10.4% above its estimated fair value. The current Operating Margin % is 1.48%, which is 86% below median its 10-year median of 10.75 and 80.7% below the Building Materials industry median of 7.65. Deccan Cements' overall GF Score™ is 60/100 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 Deccan Cements (NSE:DECCANCE), the current Operating Margin % is 1.48% 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 Deccan Cements (NSE:DECCANCE) Overvalued in 2026?
Based on GuruFocus' analysis, Deccan Cements stock appears to be overvalued.
The current stock price of ₹590.75 is trading 10.4% above its estimated GF Value™ of ₹535.23.
GuruFocus considers Deccan Cements to be Fairly Valued.
Key valuation signals for NSE:DECCANCE:
Operating Margin %: 1.48% (86% below median its 10-year median of 10.75)
GF Value™: ₹535.23 vs. price of ₹590.75 (10.4% above fair value)
Industry Position: 80.7% below the Building Materials median (#223 of 404)
No single metric tells the full story. See the NSE:DECCANCE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Deccan Cements Ltd is engaged in the manufacturing and marketing of cement in India. In addition, it is also engaged in the generation of electricity. Its power division includes Thermal, Hydel, and Wind. The The company operates in a single product segment and the product is a generic one with small variations in the form of OPC, PPC, SRC, speciality chemicals etc.
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