Servotech Renewable Power System Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Servotech Renewable Power System's Operating Margin % or its related term are showing as below:
NSE:SERVOTECH'
s Operating Margin % Range Over the Past 10 Years
Min: 3.87 Med: 6.3 Max: 9.32
Current: 7.37
NSE:SERVOTECH's Operating Margin % is ranked better than 54.54% of 3038
companies
in the Industrial Products industry
Industry Median: 6.53
vs NSE:SERVOTECH: 7.37
Servotech Renewable Power System (NSE:SERVOTECH) 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.
Servotech Renewable Power System Operating Margin % Related Terms
Servotech Renewable Power System 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.
Servotech Renewable Power System Operating Margin % Chart
NSE:SERVOTECH vs VRT, BE: Operating Margin % Comparison
For the Electrical Equipment & Parts subindustry, Servotech Renewable Power System'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.
Servotech Renewable Power System Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Servotech Renewable Power System's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Servotech Renewable Power System's Operating Margin % falls into.
Servotech Renewable Power System 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.
* 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.
Servotech Renewable Power System (NSE:SERVOTECH) has a Operating Margin % of 7.12% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Servotech Renewable Power System and its competitors. This is 13% above median its historical median of 6.30. Over the past decade, Servotech Renewable Power System's Operating Margin % has ranged from 3.87 to 9.32. According to the industry distribution chart, Servotech Renewable Power System ranks #1381 out of 3038 companies in the Industrial Products industry, placing it in the top 45.5%.
Is Servotech Renewable Power System's Operating Margin % too high?
Servotech Renewable Power System's current Operating Margin % of 7.12% is 13% above median its 10-year median of 6.30. Over the past 10 years, this metric has ranged from a low of 3.87 to a high of 9.32. The Industrial Products industry median Operating Margin % is 6.53. Servotech Renewable Power System's value of 7.12% is 9% above this industry median. Based on the distribution chart, Servotech Renewable Power System ranks #1381 out of 3038 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Servotech Renewable Power System has a GF Score™ of 88/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Servotech Renewable Power System's Operating Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Servotech Renewable Power System ranks #1381 out of 3038 companies for Operating Margin %. This puts Servotech Renewable Power System in the upper half of its industry. The industry median Operating Margin % is 6.53. Servotech Renewable Power System's value of 7.12% is 9% above this benchmark. Historically, Servotech Renewable Power System's own Operating Margin % has ranged from 3.87 to 9.32 over the past decade. While the company's 10-year median is 6.30 vs. the industry median of 6.53, Servotech Renewable Power System 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 an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,038 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. Servotech Renewable Power System's current Operating Margin % of 7.12% is 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 Servotech Renewable Power System and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Servotech Renewable Power System's current Operating Margin % is 7.12%, which is 13% above median its own 10-year median of 6.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Servotech Renewable Power System stock overvalued right now?
Based on GuruFocus' analysis, Servotech Renewable Power System (NSE:SERVOTECH) is currently considered Possible Value Trap. The stock's GF Value™ is ₹149.30, compared to a current price of ₹98.45 — trading 34.1% below its estimated fair value. The current Operating Margin % is 7.12%, which is 13% above median its 10-year median of 6.30 and 9% above the Industrial Products industry median of 6.53. Servotech Renewable Power System's overall GF Score™ is 88/100 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 Servotech Renewable Power System (NSE:SERVOTECH), the current Operating Margin % is 7.12% 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 Servotech Renewable Power System (NSE:SERVOTECH) Overvalued in 2026?
Based on GuruFocus' analysis, Servotech Renewable Power System stock appears to be undervalued.
The current stock price of ₹98.45 is trading 34.1% below its estimated GF Value™ of ₹149.30.
GuruFocus considers Servotech Renewable Power System to be Possible Value Trap.
Key valuation signals for NSE:SERVOTECH:
Operating Margin %: 7.12% (13% above median its 10-year median of 6.30)
GF Value™: ₹149.30 vs. price of ₹98.45 (34.1% below fair value)
Industry Position: 9% above the Industrial Products median (#1381 of 3038)
No single metric tells the full story. See the NSE:SERVOTECH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Servotech Renewable Power System Business Description
Servotech Renewable Power System Ltd is an Indian company in manufacturing, trading, and exporting LED, UPS, Solar Products & Flameproof LED Lights. The firm is engaged in the production, development, and marketing of both indoor and outdoor LED lighting products, solar products, and Ultraviolet C products. The product portfolio of the company includes LED tube lights and bulbs, street lights, floodlights, canopy lights, yard lights, FLP tubes, hoarding lights, system controllers, UPS, solar charge controllers, solar rooftops, UV Disinfection Lamp, UV Disinfection Handheld, UV Disinfection Truck, Sterilization Box, UVC RoboTruk, and UVLEN based on far UVC technology and others. Substantial revenue is derived from domestic sales.
88GF Score
Get the complete analysis for NSE:SERVOTECH
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:SERVOTECH has been successfully added to your 
