Finolex IndustriesNSE:FINPIPE -4.03%82 Operating Margin % is 23.28% as of Mar. 2026, which is 57% above its 10-year median of 14.79. GuruFocus rates NSE:FINPIPE with a GF Score™ of 82/100 and a GF Value™ of ₹210.56 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,767 Construction companies, Finolex Industries ranks better than 81.55% on this metric.
Finolex Industries Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -13.3%.
The historical rank and industry rank for Finolex Industries's Operating Margin % or its related term are showing as below:
NSE:FINPIPE'
s Operating Margin % Range Over the Past 10 Years
Min: 5.41 Med: 14.79 Max: 26.55
Current: 13.91
NSE:FINPIPE's Operating Margin % is ranked better than 81.55% of 1767
companies
in the Construction industry
Industry Median: 5.89
vs NSE:FINPIPE: 13.91
Finolex Industries's 5-Year Average Operating Margin % Growth Rate was -13.30% 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.
Finolex Industries Operating Margin % Related Terms
Finolex Industries Operating Margin % Historical Data
* Premium members only.
The historical data trend for Finolex Industries'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:FINPIPE vs TT, JCI, CARR: Operating Margin % Comparison
For the Building Products & Equipment subindustry, Finolex Industries'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.
Finolex Industries Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Finolex Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Finolex Industries'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.
Finolex Industries'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.
Finolex Industries (NSE:FINPIPE) has a Operating Margin % of 23.28% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Finolex Industries and its competitors. This is 57% above median its historical median of 14.79. Over the past decade, Finolex Industries' Operating Margin % has ranged from 5.41 to 26.55. According to the industry distribution chart, Finolex Industries ranks #326 out of 1767 companies in the Construction industry, placing it in the top 18.4%.
Is Finolex Industries' Operating Margin % too high?
Finolex Industries' current Operating Margin % of 23.28% is 57% above median its 10-year median of 14.79. Over the past 10 years, this metric has ranged from a low of 5.41 to a high of 26.55. The Construction industry median Operating Margin % is 5.89. Finolex Industries' value of 23.28% is 295.2% above this industry median. Based on the distribution chart, Finolex Industries ranks #326 out of 1767 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Finolex Industries has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Finolex Industries' Operating Margin % compare to TT and JCI?
According to the Construction industry distribution chart, Finolex Industries ranks #326 out of 1767 companies for Operating Margin %. This places Finolex Industries in the top 18% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.89. Finolex Industries' value of 23.28% is 295.2% above this benchmark. Historically, Finolex Industries' own Operating Margin % has ranged from 5.41 to 26.55 over the past decade. While the company's 10-year median is 14.79 vs. the industry median of 5.89, Finolex Industries 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 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. Finolex Industries's current Operating Margin % of 23.28% is 295.2% 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 Finolex Industries and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Finolex Industries's current Operating Margin % is 23.28%, which is 57% above median its own 10-year median of 14.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Finolex Industries stock overvalued right now?
Based on GuruFocus' analysis, Finolex Industries (NSE:FINPIPE) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹210.56, compared to a current price of ₹176.25 — trading 16.3% below its estimated fair value. The current Operating Margin % is 23.28%, which is 57% above median its 10-year median of 14.79 and 295.2% above the Construction industry median of 5.89. Finolex Industries' overall GF Score™ is 82/100 with 3 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 Finolex Industries (NSE:FINPIPE), the current Operating Margin % is 23.28% 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 Finolex Industries (NSE:FINPIPE) Overvalued in 2026?
Based on GuruFocus' analysis, Finolex Industries stock appears to be undervalued.
The current stock price of ₹176.25 is trading 16.3% below its estimated GF Value™ of ₹210.56.
GuruFocus considers Finolex Industries to be Modestly Undervalued.
Key valuation signals for NSE:FINPIPE:
Operating Margin %: 23.28% (57% above median its 10-year median of 14.79)
GF Value™: ₹210.56 vs. price of ₹176.25 (16.3% below fair value)
Industry Position: 295.2% above the Construction median (#326 of 1767)
No single metric tells the full story. See the NSE:FINPIPE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Finolex Industries Ltd manufactures rigid polyvinyl chloride pipes and resins, and fittings. Pipes and fittings are developed out of manufacturing plants strategically located in India. Finolex's products are designed to meet a range of specifications such as size, pressure classes, and diameters. Traditionally, market participants in agriculture, housing, telecom, construction, and other industries have constituted the largest portion of the company's customer base. In addition to the number of manufacturing plants across India, Finolex depends on a network of direct and indirect retail outlets across the country to deliver its services to numerous industries.
82GF Score
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