Indo Farm EquipmentNSE:INDOFARM -1.73%37 Operating Margin % is 11.53% as of Mar. 2026, which is 9% below its 10-year median of 12.74. GuruFocus rates NSE:INDOFARM with a GF Score™ of 37/100. The stock has 4 warning signs investors should review. Among 209 Farm & Heavy Construction Machinery companies, Indo Farm Equipment ranks better than 66.51% on this metric.
Indo Farm Equipment Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -3%.
The historical rank and industry rank for Indo Farm Equipment's Operating Margin % or its related term are showing as below:
NSE:INDOFARM'
s Operating Margin % Range Over the Past 10 Years
Min: 10.06 Med: 12.74 Max: 14.12
Current: 10.06
NSE:INDOFARM's Operating Margin % is ranked better than 66.51% of 209
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 6.78
vs NSE:INDOFARM: 10.06
Indo Farm Equipment's 5-Year Average Operating Margin % Growth Rate was -3.00% 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.
Indo Farm Equipment Operating Margin % Related Terms
Indo Farm Equipment Operating Margin % Historical Data
* Premium members only.
The historical data trend for Indo Farm Equipment'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:INDOFARM vs CAT, DE, PCAR: Operating Margin % Comparison
For the Farm & Heavy Construction Machinery subindustry, Indo Farm Equipment'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.
Indo Farm Equipment Operating Margin % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Indo Farm Equipment's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Indo Farm Equipment'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.
Indo Farm Equipment'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.
Indo Farm Equipment (NSE:INDOFARM) has a Operating Margin % of 11.53% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Indo Farm Equipment and its competitors. This is near median its historical median of 12.74. Over the past decade, Indo Farm Equipment's Operating Margin % has ranged from 10.06 to 14.12. According to the industry distribution chart, Indo Farm Equipment ranks #70 out of 209 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 33.5%.
Is Indo Farm Equipment's Operating Margin % too high?
Indo Farm Equipment's current Operating Margin % of 11.53% is near median its 10-year median of 12.74. Over the past 10 years, this metric has ranged from a low of 10.06 to a high of 14.12. The Farm & Heavy Construction Machinery industry median Operating Margin % is 6.78. Indo Farm Equipment's value of 11.53% is 70.1% above this industry median. Based on the distribution chart, Indo Farm Equipment ranks #70 out of 209 companies in the Farm & Heavy Construction Machinery industry, which is above the industry midpoint. Overall, Indo Farm Equipment has a GF Score™ of 37/100, reflecting its overall financial health beyond just this single metric.
How does Indo Farm Equipment's Operating Margin % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Indo Farm Equipment ranks #70 out of 209 companies for Operating Margin %. This puts Indo Farm Equipment in the upper half of its industry. The industry median Operating Margin % is 6.78. Indo Farm Equipment's value of 11.53% is 70.1% above this benchmark. Historically, Indo Farm Equipment's own Operating Margin % has ranged from 10.06 to 14.12 over the past decade. While the company's 10-year median is 12.74 vs. the industry median of 6.78, Indo Farm Equipment 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 Farm & Heavy Construction Machinery company?
The median Operating Margin % among Farm & Heavy Construction Machinery companies is 6.78, based on 209 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. Indo Farm Equipment's current Operating Margin % of 11.53% is 70.1% 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 Indo Farm Equipment and its competitors. For the Farm & Heavy Construction Machinery industry, the median Operating Margin % is 6.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Indo Farm Equipment's current Operating Margin % is 11.53%, which is near median its own 10-year median of 12.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indo Farm Equipment stock overvalued right now?
Indo Farm Equipment (NSE:INDOFARM) has a current Operating Margin % of 11.53%. The current Operating Margin % is 11.53%, which is near median its 10-year median of 12.74 and 70.1% above the Farm & Heavy Construction Machinery industry median of 6.78. Indo Farm Equipment's overall GF Score™ is 37/100 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 Indo Farm Equipment (NSE:INDOFARM), the current Operating Margin % is 11.53% 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.
Indo Farm Equipment Ltd is a fully integrated established manufacturer of Tractors and Pick & Carry Cranes. It also deals in other farm equipment such as Harvester Combines, Rotavators, and other related spares & components. Its facilities are equipped with induction furnaces, pneumatic molding machines, automatic molding line, a sand plant, a fully equipped Metallurgy and Sand Testing Laboratory, a Machining Center, a Gear Shop, a Press Shop, Fabrication Shop, Paint Shop, Assembly unit, Quality Room & Utility room.
37GF Score
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