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Shilpa MedicareNSE:SHILPAMED -2.76%76 Operating Margin % is 24.27% as of Mar. 2026, which is 50% above its 10-year median of 16.14. GuruFocus rates NSE:SHILPAMED with a GF Score™ of 76/100 and a GF Value™ of ₹387.78 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 961 Drug Manufacturers companies, Shilpa Medicare ranks better than 83.98% on this metric.
The historical rank and industry rank for Shilpa Medicare's Operating Margin % or its related term are showing as below:
NSE:SHILPAMED'
s Operating Margin % Range Over the Past 10 Years
Min: -0.44 Med: 16.14 Max: 24.43
Current: 21.53
NSE:SHILPAMED's Operating Margin % is ranked better than 83.98% of 961
companies
in the Drug Manufacturers industry
Industry Median: 7.45
vs NSE:SHILPAMED: 21.53
Shilpa Medicare's 5-Year Average Operating Margin % Growth Rate was 0.00% 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.
Shilpa Medicare Operating Margin % Related Terms
Shilpa Medicare Operating Margin % Historical Data
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The historical data trend for Shilpa Medicare'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:SHILPAMED vs ZTS, UTHR: Operating Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Shilpa Medicare'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.
Shilpa Medicare Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Shilpa Medicare's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Shilpa Medicare'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.
Shilpa Medicare'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.
Shilpa Medicare (NSE:SHILPAMED) has a Operating Margin % of 24.27% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Shilpa Medicare and its competitors. This is 50% above median its historical median of 16.14. According to the industry distribution chart, Shilpa Medicare ranks #154 out of 961 companies in the Drug Manufacturers industry, placing it in the top 16%.
Is Shilpa Medicare's Operating Margin % too high?
Shilpa Medicare's current Operating Margin % of 24.27% is 50% above median its 10-year median of 16.14. The Drug Manufacturers industry median Operating Margin % is 7.45. Shilpa Medicare's value of 24.27% is 225.8% above this industry median. Based on the distribution chart, Shilpa Medicare ranks #154 out of 961 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Shilpa Medicare has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shilpa Medicare's Operating Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Shilpa Medicare ranks #154 out of 961 companies for Operating Margin %. This places Shilpa Medicare in the top 16% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.45. Shilpa Medicare's value of 24.27% is 225.8% above this benchmark. While the company's 10-year median is 16.14 vs. the industry median of 7.45, Shilpa Medicare 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.45, based on 961 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. Shilpa Medicare's current Operating Margin % of 24.27% is 225.8% 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 Shilpa Medicare and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shilpa Medicare's current Operating Margin % is 24.27%, which is 50% above median its own 10-year median of 16.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shilpa Medicare stock overvalued right now?
Based on GuruFocus' analysis, Shilpa Medicare (NSE:SHILPAMED) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹387.78, compared to a current price of ₹620.25 — trading 59.9% above its estimated fair value. The current Operating Margin % is 24.27%, which is 50% above median its 10-year median of 16.14 and 225.8% above the Drug Manufacturers industry median of 7.45. Shilpa Medicare's overall GF Score™ is 76/100 with 6 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 Shilpa Medicare (NSE:SHILPAMED), the current Operating Margin % is 24.27% 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 Shilpa Medicare (NSE:SHILPAMED) Overvalued in 2026?
Based on GuruFocus' analysis, Shilpa Medicare stock appears to be overvalued.
The current stock price of ₹620.25 is trading 59.9% above its estimated GF Value™ of ₹387.78.
GuruFocus considers Shilpa Medicare to be Significantly Overvalued.
Key valuation signals for NSE:SHILPAMED:
Operating Margin %: 24.27% (50% above median its 10-year median of 16.14)
GF Value™: ₹387.78 vs. price of ₹620.25 (59.9% above fair value)
Industry Position: 225.8% above the Drug Manufacturers median (#154 of 961)
No single metric tells the full story. See the NSE:SHILPAMED stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shilpa Medicare Ltd is a specialty and generic drug manufacturer. The company deals in high-quality Active Pharmaceutical Ingredients (APIs), Intermediates, Formulations, New Drug Delivery Systems, Peptides, Biotech products, and Specialty Chemicals etc. Its portfolio comprises various oncology and non-oncology-related APIs such as anastrozole, acebrophylline, busulphan, decitabine, etc, and finished dosage formulations such as apremilast tablets, clofarabine injection, docetaxel injection, etc., in various therapy areas. Its reporting segments are: Pharmaceutical product and services, which derive maximum revenue, Power sales, and Others. Geographically, the company generates maximum revenue from India, followed by Europe, the United States of America, and the Rest of the world.
76GF Score
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