Royal Orchid HotelsNSE:ROHLTD +0.29%74 Operating Margin % is 12.51% as of Mar. 2026, which is 16% above its 10-year median of 10.82. GuruFocus rates NSE:ROHLTD with a GF Score™ of 74/100 and a GF Value™ of ₹481.82 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 843 Travel & Leisure companies, Royal Orchid Hotels ranks better than 65.24% on this metric.
The historical rank and industry rank for Royal Orchid Hotels's Operating Margin % or its related term are showing as below:
NSE:ROHLTD'
s Operating Margin % Range Over the Past 10 Years
Min: -41.78 Med: 10.82 Max: 24.11
Current: 13.73
NSE:ROHLTD's Operating Margin % is ranked better than 65.24% of 843
companies
in the Travel & Leisure industry
Industry Median: 8.12
vs NSE:ROHLTD: 13.73
Royal Orchid Hotels's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Royal Orchid Hotels (NSE:ROHLTD) 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.
Royal Orchid Hotels Operating Margin % Related Terms
Royal Orchid Hotels Operating Margin % Historical Data
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The historical data trend for Royal Orchid Hotels'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:ROHLTD vs MAR, HLT, H: Operating Margin % Comparison
For the Lodging subindustry, Royal Orchid Hotels'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.
Royal Orchid Hotels Operating Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Royal Orchid Hotels's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Royal Orchid Hotels's Operating Margin % falls into.
Royal Orchid Hotels 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.
Royal Orchid Hotels'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.
Royal Orchid Hotels (NSE:ROHLTD) has a Operating Margin % of 12.51% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Royal Orchid Hotels and its competitors. This is 16% above median its historical median of 10.82. According to the industry distribution chart, Royal Orchid Hotels ranks #293 out of 843 companies in the Travel & Leisure industry, placing it in the top 34.8%.
Is Royal Orchid Hotels' Operating Margin % too high?
Royal Orchid Hotels' current Operating Margin % of 12.51% is 16% above median its 10-year median of 10.82. The Travel & Leisure industry median Operating Margin % is 8.12. Royal Orchid Hotels' value of 12.51% is 54.1% above this industry median. Based on the distribution chart, Royal Orchid Hotels ranks #293 out of 843 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, Royal Orchid Hotels has a GF Score™ of 74/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Royal Orchid Hotels' Operating Margin % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Royal Orchid Hotels ranks #293 out of 843 companies for Operating Margin %. This puts Royal Orchid Hotels in the upper half of its industry. The industry median Operating Margin % is 8.12. Royal Orchid Hotels' value of 12.51% is 54.1% above this benchmark. While the company's 10-year median is 10.82 vs. the industry median of 8.12, Royal Orchid Hotels 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 Travel & Leisure company?
The median Operating Margin % among Travel & Leisure companies is 8.12, based on 843 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. Royal Orchid Hotels's current Operating Margin % of 12.51% is 54.1% 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 Royal Orchid Hotels and its competitors. For the Travel & Leisure industry, the median Operating Margin % is 8.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royal Orchid Hotels's current Operating Margin % is 12.51%, which is 16% above median its own 10-year median of 10.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royal Orchid Hotels stock overvalued right now?
Based on GuruFocus' analysis, Royal Orchid Hotels (NSE:ROHLTD) is currently considered Possible Value Trap. The stock's GF Value™ is ₹481.82, compared to a current price of ₹333.00 — trading 30.9% below its estimated fair value. The current Operating Margin % is 12.51%, which is 16% above median its 10-year median of 10.82 and 54.1% above the Travel & Leisure industry median of 8.12. Royal Orchid Hotels' overall GF Score™ is 74/100 with 5 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 Royal Orchid Hotels (NSE:ROHLTD), the current Operating Margin % is 12.51% 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 Royal Orchid Hotels (NSE:ROHLTD) Overvalued in 2026?
Based on GuruFocus' analysis, Royal Orchid Hotels stock appears to be undervalued.
The current stock price of ₹333.00 is trading 30.9% below its estimated GF Value™ of ₹481.82.
GuruFocus considers Royal Orchid Hotels to be Possible Value Trap.
Key valuation signals for NSE:ROHLTD:
Operating Margin %: 12.51% (16% above median its 10-year median of 10.82)
GF Value™: ₹481.82 vs. price of ₹333.00 (30.9% below fair value)
Industry Position: 54.1% above the Travel & Leisure median (#293 of 843)
No single metric tells the full story. See the NSE:ROHLTD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Royal Orchid Hotels Ltd is an Indian company involved in accommodation and food service activities, such as hotels, resorts, and restaurants, and food and beverage services activities, such as restaurants and mobile food services. It operates and manages hotels/resorts, and provides related services. It offers a range of options for business hotels ranging from luxurious five-star hotels to economy business hotels. The company operates hotels in different parts of India including Ahmedabad, Amritsar, Bangalore, Chandigarh, Chennai, Dwarka, Goa, Gurgaon, Haridwar, Jaipur, Kolkata, and Mahabaleshwar among others.
74GF Score
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