Rama PhosphatesNSE:RAMAPHO -3.83%83 Operating Margin % is 3.70% as of Mar. 2026, which is 51% below its 10-year median of 7.50. GuruFocus rates NSE:RAMAPHO with a GF Score™ of 83/100 and a GF Value™ of ₹194.95 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 251 Agriculture companies, Rama Phosphates ranks better than 62.15% on this metric.
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.
Rama Phosphates Operating Margin % Related Terms
Rama Phosphates Operating Margin % Historical Data
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The historical data trend for Rama Phosphates'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:RAMAPHO vs CTVA, CF: Operating Margin % Comparison
For the Agricultural Inputs subindustry, Rama Phosphates'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.
Rama Phosphates Operating Margin % vs Agriculture Industry
For the Agriculture industry and Basic Materials sector, Rama Phosphates's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Rama Phosphates'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.
Rama Phosphates'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.
Rama Phosphates (NSE:RAMAPHO) has a Operating Margin % of 3.70% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Rama Phosphates and its competitors. This is 51% below median its historical median of 7.50. According to the industry distribution chart, Rama Phosphates ranks #95 out of 251 companies in the Agriculture industry, placing it in the top 37.8%.
Is Rama Phosphates' Operating Margin % too high?
Rama Phosphates' current Operating Margin % of 3.70% is 51% below median its 10-year median of 7.50. The Agriculture industry median Operating Margin % is 6.76. Rama Phosphates' value of 3.70% is 45.3% below this industry median. Based on the distribution chart, Rama Phosphates ranks #95 out of 251 companies in the Agriculture industry, which is above the industry midpoint. Overall, Rama Phosphates has a GF Score™ of 83/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Rama Phosphates' Operating Margin % compare to CTVA and CF?
According to the Agriculture industry distribution chart, Rama Phosphates ranks #95 out of 251 companies for Operating Margin %. This puts Rama Phosphates in the upper half of its industry. The industry median Operating Margin % is 6.76. Rama Phosphates' value of 3.70% is 45.3% below this benchmark. While the company's 10-year median is 7.50 vs. the industry median of 6.76, Rama Phosphates has consistently been below 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 Agriculture company?
The median Operating Margin % among Agriculture companies is 6.76, based on 251 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. Rama Phosphates's current Operating Margin % of 3.70% is 45.3% below 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 Rama Phosphates and its competitors. For the Agriculture industry, the median Operating Margin % is 6.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rama Phosphates's current Operating Margin % is 3.70%, which is 51% below median its own 10-year median of 7.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rama Phosphates stock overvalued right now?
Based on GuruFocus' analysis, Rama Phosphates (NSE:RAMAPHO) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹194.95, compared to a current price of ₹129.72 — trading 33.5% below its estimated fair value. The current Operating Margin % is 3.70%, which is 51% below median its 10-year median of 7.50 and 45.3% below the Agriculture industry median of 6.76. Rama Phosphates' overall GF Score™ is 83/100 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 Rama Phosphates (NSE:RAMAPHO), the current Operating Margin % is 3.70% 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 Rama Phosphates (NSE:RAMAPHO) Overvalued in 2026?
Based on GuruFocus' analysis, Rama Phosphates stock appears to be undervalued.
The current stock price of ₹129.72 is trading 33.5% below its estimated GF Value™ of ₹194.95.
GuruFocus considers Rama Phosphates to be Significantly Undervalued.
Key valuation signals for NSE:RAMAPHO:
Operating Margin %: 3.70% (51% below median its 10-year median of 7.50)
GF Value™: ₹194.95 vs. price of ₹129.72 (33.5% below fair value)
Industry Position: 45.3% below the Agriculture median (#95 of 251)
No single metric tells the full story. See the NSE:RAMAPHO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rama Phosphates Ltd is an Indian fertilizer manufacturing company. It is engaged in manufacturing phosphatic fertilizers such as Single Super Phosphate (Powder as well as Granule), Mixed fertilizers namely NPK of various grades, Fortified fertilizers namely Boronated Single Super Phosphate (Powder and Granule), and Micronutrients namely Magnesium Sulphate among other products. The company's operating segments include Fertilizers, Micro Nutrients & Chemicals and Oil.
83GF Score
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