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HEG Advanced MaterialsNSE:HEG +4.98%78 Operating Margin % is 16.26% as of Jun. 2026, which is 40% above its 10-year median of 11.63. GuruFocus rates NSE:HEG with a GF Score™ of 78/100 and a GF Value™ of ₹561.20 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 3,055 Industrial Products companies, HEG Advanced Materials ranks better than 98.43% on this metric.
The historical rank and industry rank for HEG Advanced Materials's Operating Margin % or its related term are showing as below:
NSE:HEG'
s Operating Margin % Range Over the Past 10 Years
Min: -9.08 Med: 11.63 Max: 71.51
Current: 32.88
NSE:HEG's Operating Margin % is ranked better than 98.43% of 3055
companies
in the Industrial Products industry
Industry Median: 6.42
vs NSE:HEG: 32.88
HEG Advanced Materials's 5-Year Average Operating Margin % Growth Rate was 0.00% 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.
HEG Advanced Materials Operating Margin % Related Terms
HEG Advanced Materials Operating Margin % Historical Data
* Premium members only.
The historical data trend for HEG Advanced Materials'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.
For the Electrical Equipment & Parts subindustry, HEG Advanced Materials'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.
HEG Advanced Materials Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, HEG Advanced Materials's Operating Margin % distribution charts can be found below:
* The bar in red indicates where HEG Advanced Materials'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.
HEG Advanced Materials'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.
HEG Advanced Materials (NSE:HEG) has a Operating Margin % of 16.26% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on HEG Advanced Materials and its competitors. This is 40% above median its historical median of 11.63. According to the industry distribution chart, HEG Advanced Materials ranks #48 out of 3055 companies in the Industrial Products industry, placing it in the top 1.6%.
Is HEG Advanced Materials' Operating Margin % too high?
HEG Advanced Materials' current Operating Margin % of 16.26% is 40% above median its 10-year median of 11.63. The Industrial Products industry median Operating Margin % is 6.42. HEG Advanced Materials' value of 16.26% is 153.3% above this industry median. Based on the distribution chart, HEG Advanced Materials ranks #48 out of 3055 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, HEG Advanced Materials has a GF Score™ of 78/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does HEG Advanced Materials' Operating Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, HEG Advanced Materials ranks #48 out of 3055 companies for Operating Margin %. This places HEG Advanced Materials in the top 2% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.42. HEG Advanced Materials' value of 16.26% is 153.3% above this benchmark. While the company's 10-year median is 11.63 vs. the industry median of 6.42, HEG Advanced Materials 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 an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.42, based on 3,055 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. HEG Advanced Materials's current Operating Margin % of 16.26% is 153.3% 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 HEG Advanced Materials and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HEG Advanced Materials's current Operating Margin % is 16.26%, which is 40% above median its own 10-year median of 11.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HEG Advanced Materials stock overvalued right now?
Based on GuruFocus' analysis, HEG Advanced Materials (NSE:HEG) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹561.20, compared to a current price of ₹248.50 — trading 55.7% below its estimated fair value. The current Operating Margin % is 16.26%, which is 40% above median its 10-year median of 11.63 and 153.3% above the Industrial Products industry median of 6.42. HEG Advanced Materials' overall GF Score™ is 78/100 with 1 warning sign 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 HEG Advanced Materials (NSE:HEG), the current Operating Margin % is 16.26% as of Jun. 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 HEG Advanced Materials (NSE:HEG) Overvalued in 2026?
Based on GuruFocus' analysis, HEG Advanced Materials stock appears to be undervalued.
The current stock price of ₹248.50 is trading 55.7% below its estimated GF Value™ of ₹561.20.
GuruFocus considers HEG Advanced Materials to be Significantly Undervalued.
Key valuation signals for NSE:HEG:
Operating Margin %: 16.26% (40% above median its 10-year median of 11.63)
GF Value™: ₹561.20 vs. price of ₹248.50 (55.7% below fair value)
Industry Position: 153.3% above the Industrial Products median (#48 of 3055)
No single metric tells the full story. See the NSE:HEG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HEG Ltd is a graphite electrode manufacturer. The company operates in business segments that include Graphite Electrodes, which manufactures graphite electrodes; and Power Generation, which comprises of generation of power for captive consumption and sale. The company generates the majority of its revenue from the Graphite Electrodes segment. It also focuses on carbon specialties. The export sales generate maximum revenue for the company.
78GF Score
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