Godawari Power & IspatNSE:GPIL -1.84%80 Operating Margin % is 24.26% as of Mar. 2026, which is 23% above its 10-year median of 19.65. GuruFocus rates NSE:GPIL with a GF Score™ of 80/100 and a GF Value™ of ₹203.22 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 616 Steel companies, Godawari Power & Ispat ranks better than 94.48% on this metric.
Godawari Power & Ispat (NSE:GPIL) Operating Margin % Explanation
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.
Godawari Power & Ispat Operating Margin % Related Terms
Godawari Power & Ispat Operating Margin % Historical Data
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The historical data trend for Godawari Power & Ispat'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:GPIL vs NUE, STLD, RS: Operating Margin % Comparison
For the Steel subindustry, Godawari Power & Ispat'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.
Godawari Power & Ispat Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Godawari Power & Ispat's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Godawari Power & Ispat's Operating Margin % falls into.
Godawari Power & Ispat Operating Margin % Calculation
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.
Godawari Power & Ispat'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.
Godawari Power & Ispat (NSE:GPIL) has a Operating Margin % of 24.26% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Godawari Power & Ispat and its competitors. This is 23% above median its historical median of 19.65. Over the past decade, Godawari Power & Ispat's Operating Margin % has ranged from 9.43 to 32.96. According to the industry distribution chart, Godawari Power & Ispat ranks #34 out of 616 companies in the Steel industry, placing it in the top 5.5%.
Is Godawari Power & Ispat's Operating Margin % too high?
Godawari Power & Ispat's current Operating Margin % of 24.26% is 23% above median its 10-year median of 19.65. Over the past 10 years, this metric has ranged from a low of 9.43 to a high of 32.96. The Steel industry median Operating Margin % is 3.00. Godawari Power & Ispat's value of 24.26% is 708.7% above this industry median. Based on the distribution chart, Godawari Power & Ispat ranks #34 out of 616 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Godawari Power & Ispat has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Godawari Power & Ispat's Operating Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Godawari Power & Ispat ranks #34 out of 616 companies for Operating Margin %. This places Godawari Power & Ispat in the top 6% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.00. Godawari Power & Ispat's value of 24.26% is 708.7% above this benchmark. Historically, Godawari Power & Ispat's own Operating Margin % has ranged from 9.43 to 32.96 over the past decade. While the company's 10-year median is 19.65 vs. the industry median of 3.00, Godawari Power & Ispat 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 Steel company?
The median Operating Margin % among Steel companies is 3.00, based on 616 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. Godawari Power & Ispat's current Operating Margin % of 24.26% is 708.7% 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 Godawari Power & Ispat and its competitors. For the Steel industry, the median Operating Margin % is 3.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Godawari Power & Ispat's current Operating Margin % is 24.26%, which is 23% above median its own 10-year median of 19.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Godawari Power & Ispat stock overvalued right now?
Based on GuruFocus' analysis, Godawari Power & Ispat (NSE:GPIL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹203.22, compared to a current price of ₹271.75 — trading 33.7% above its estimated fair value. The current Operating Margin % is 24.26%, which is 23% above median its 10-year median of 19.65 and 708.7% above the Steel industry median of 3.00. Godawari Power & Ispat's overall GF Score™ is 80/100 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 Godawari Power & Ispat (NSE:GPIL), the current Operating Margin % is 24.26% 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 Godawari Power & Ispat (NSE:GPIL) Overvalued in 2026?
Based on GuruFocus' analysis, Godawari Power & Ispat stock appears to be overvalued.
The current stock price of ₹271.75 is trading 33.7% above its estimated GF Value™ of ₹203.22.
GuruFocus considers Godawari Power & Ispat to be Significantly Overvalued.
Key valuation signals for NSE:GPIL:
Operating Margin %: 24.26% (23% above median its 10-year median of 19.65)
GF Value™: ₹203.22 vs. price of ₹271.75 (33.7% above fair value)
Industry Position: 708.7% above the Steel median (#34 of 616)
No single metric tells the full story. See the NSE:GPIL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Godawari Power & Ispat Ltd is an India-based fully integrated steel company with a presence across the steel value chain extending from iron ore mining to iron ore pellets and value-added steel products. The company has a single primary business segment Iron and Steel which includes captive power, as the captive power generated by the company is used for the production process of iron and steel. The group operates in India. The products offered by the group are Pellets, Sponge iron, Iron and steel billets, Wire rods, Hard black wires, Ferro-alloys, and others.
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