Power Mech ProjectsNSE:POWERMECH -1.17%90 Operating Margin % is 9.74% as of Mar. 2026, which is 7% below its 10-year median of 10.43. GuruFocus rates NSE:POWERMECH with a GF Score™ of 90/100 and a GF Value™ of ₹3,445.97 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,767 Construction companies, Power Mech Projects ranks better than 72.21% on this metric.
Power Mech Projects Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Power Mech Projects's Operating Margin % or its related term are showing as below:
NSE:POWERMECH'
s Operating Margin % Range Over the Past 10 Years
Min: 0.36 Med: 10.43 Max: 10.95
Current: 10.4
NSE:POWERMECH's Operating Margin % is ranked better than 72.21% of 1767
companies
in the Construction industry
Industry Median: 5.89
vs NSE:POWERMECH: 10.40
Power Mech Projects's 5-Year Average Operating Margin % Growth Rate was 63.60% per year.
Power Mech Projects (NSE:POWERMECH) 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.
Power Mech Projects Operating Margin % Related Terms
Power Mech Projects Operating Margin % Historical Data
* Premium members only.
The historical data trend for Power Mech Projects'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:POWERMECH vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, Power Mech Projects'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.
Power Mech Projects Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Power Mech Projects's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Power Mech Projects's Operating Margin % falls into.
Power Mech Projects 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.
Power Mech Projects'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.
Power Mech Projects (NSE:POWERMECH) has a Operating Margin % of 9.74% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Power Mech Projects and its competitors. This is near median its historical median of 10.43. Over the past decade, Power Mech Projects' Operating Margin % has ranged from 0.36 to 10.95. According to the industry distribution chart, Power Mech Projects ranks #491 out of 1767 companies in the Construction industry, placing it in the top 27.8%.
Is Power Mech Projects' Operating Margin % too high?
Power Mech Projects' current Operating Margin % of 9.74% is near median its 10-year median of 10.43. Over the past 10 years, this metric has ranged from a low of 0.36 to a high of 10.95. The Construction industry median Operating Margin % is 5.89. Power Mech Projects' value of 9.74% is 65.4% above this industry median. Based on the distribution chart, Power Mech Projects ranks #491 out of 1767 companies in the Construction industry, which is above the industry midpoint. Overall, Power Mech Projects has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Power Mech Projects' Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Power Mech Projects ranks #491 out of 1767 companies for Operating Margin %. This puts Power Mech Projects in the upper half of its industry. The industry median Operating Margin % is 5.89. Power Mech Projects' value of 9.74% is 65.4% above this benchmark. Historically, Power Mech Projects' own Operating Margin % has ranged from 0.36 to 10.95 over the past decade. While the company's 10-year median is 10.43 vs. the industry median of 5.89, Power Mech Projects 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. Power Mech Projects's current Operating Margin % of 9.74% is 65.4% 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 Power Mech Projects 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. Power Mech Projects's current Operating Margin % is 9.74%, which is near median its own 10-year median of 10.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Power Mech Projects stock overvalued right now?
Based on GuruFocus' analysis, Power Mech Projects (NSE:POWERMECH) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹3,445.97, compared to a current price of ₹2,760.10 — trading 19.9% below its estimated fair value. The current Operating Margin % is 9.74%, which is near median its 10-year median of 10.43 and 65.4% above the Construction industry median of 5.89. Power Mech Projects' overall GF Score™ is 90/100 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 Power Mech Projects (NSE:POWERMECH), the current Operating Margin % is 9.74% 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 Power Mech Projects (NSE:POWERMECH) Overvalued in 2026?
Based on GuruFocus' analysis, Power Mech Projects stock appears to be undervalued.
The current stock price of ₹2,760.10 is trading 19.9% below its estimated GF Value™ of ₹3,445.97.
GuruFocus considers Power Mech Projects to be Modestly Undervalued.
Key valuation signals for NSE:POWERMECH:
Operating Margin %: 9.74% (near median its 10-year median of 10.43)
GF Value™: ₹3,445.97 vs. price of ₹2,760.10 (19.9% below fair value)
Industry Position: 65.4% above the Construction median (#491 of 1767)
No single metric tells the full story. See the NSE:POWERMECH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Power Mech Projects Ltd is an India-based engineering and construction company providing integrated service in erection, testing and commissioning (ETC) of boilers, turbines and generators and balance of plant (BOP), civil works and operation and maintenance (O&M). The company is also undertaking railway projects and executing railway project of doubling of tracks including electrification, signalling, culverts, platforms, transmission and distribution portfolio. It operates in the business segment of construction and maintenance activities. Geographically the company generates the majority of its revenue from India.
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