Home First Finance Co India (NSE:HOMEFIRST) 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.
Home First Finance Co India Operating Margin % Related Terms
Home First Finance Co India Operating Margin % Historical Data
* 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.
Home First Finance Co India Operating Margin % Chart
NSE:HOMEFIRST vs RKT, FNMA, PFSI: Operating Margin % Comparison
For the Mortgage Finance subindustry, Home First Finance Co India'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.
Home First Finance Co India Operating Margin % vs Banks Industry
For the Banks industry and Financial Services sector, Home First Finance Co India's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Home First Finance Co India's Operating Margin % falls into.
Home First Finance Co India 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.
Home First Finance Co India'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.
Home First Finance Co India (NSE:HOMEFIRST) has a Operating Margin % of 35.71% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Home First Finance Co India and its competitors. This is 33% above median its historical median of 26.81. Over the past decade, Home First Finance Co India's Operating Margin % has ranged from 15.95 to 34.56. According to the industry distribution chart, Home First Finance Co India ranks #11 out of 48 companies in the Banks industry, placing it in the top 22.9%.
Is Home First Finance Co India's Operating Margin % too high?
Home First Finance Co India's current Operating Margin % of 35.71% is 33% above median its 10-year median of 26.81. Over the past 10 years, this metric has ranged from a low of 15.95 to a high of 34.56. The Banks industry median Operating Margin % is 18.14. Home First Finance Co India's value of 35.71% is 96.9% above this industry median. Based on the distribution chart, Home First Finance Co India ranks #11 out of 48 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Home First Finance Co India has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Home First Finance Co India's Operating Margin % compare to RKT and FNMA?
According to the Banks industry distribution chart, Home First Finance Co India ranks #11 out of 48 companies for Operating Margin %. This places Home First Finance Co India in the top 23% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 18.14. Home First Finance Co India's value of 35.71% is 96.9% above this benchmark. Historically, Home First Finance Co India's own Operating Margin % has ranged from 15.95 to 34.56 over the past decade. While the company's 10-year median is 26.81 vs. the industry median of 18.14, Home First Finance Co India 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 Banks company?
The median Operating Margin % among Banks companies is 18.14, based on 48 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. Home First Finance Co India's current Operating Margin % of 35.71% is 96.9% 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 Home First Finance Co India and its competitors. For the Banks industry, the median Operating Margin % is 18.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Home First Finance Co India's current Operating Margin % is 35.71%, which is 33% above median its own 10-year median of 26.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Home First Finance Co India stock overvalued right now?
Based on GuruFocus' analysis, Home First Finance Co India (NSE:HOMEFIRST) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,341.17, compared to a current price of ₹1,163.50 — trading 13.2% below its estimated fair value. The current Operating Margin % is 35.71%, which is 33% above median its 10-year median of 26.81 and 96.9% above the Banks industry median of 18.14. Home First Finance Co India's overall GF Score™ is 84/100 with 6 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 Home First Finance Co India (NSE:HOMEFIRST), the current Operating Margin % is 35.71% 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 Home First Finance Co India (NSE:HOMEFIRST) Overvalued in 2026?
Based on GuruFocus' analysis, Home First Finance Co India stock appears to be undervalued.
The current stock price of ₹1,163.50 is trading 13.2% below its estimated GF Value™ of ₹1,341.17.
GuruFocus considers Home First Finance Co India to be Modestly Undervalued.
Key valuation signals for NSE:HOMEFIRST:
Operating Margin %: 35.71% (33% above median its 10-year median of 26.81)
GF Value™: ₹1,341.17 vs. price of ₹1,163.50 (13.2% below fair value)
Industry Position: 96.9% above the Banks median (#11 of 48)
No single metric tells the full story. See the NSE:HOMEFIRST stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Home First Finance Co India Ltd is a technology-driven housing finance company focused on enabling home ownership for first-time home buyers across India. The Company provides financial services to the affordable housing segment through housing loans, loans for the purchase of commercial properties, and loans against property. It offers home loans for the purchase or construction of residential properties, as well as for the extension and repair of existing housing units. Its product portfolio includes Housing Loans, Shop Loans, Loans against Property, and other mortgage loans. The Company mainly serves first-time home buyers in the low- and middle-income segment, with a focus on emerging urban, semi-urban, and affordable housing markets across India.
84GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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