Sirca Paints IndiaNSE:SIRCA -0.71%97 Operating Margin % is 16.96% as of Mar. 2026, which is 20% below its 10-year median of 21.16. GuruFocus rates NSE:SIRCA with a GF Score™ of 97/100 and a GF Value™ of ₹563.44 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,580 Chemicals companies, Sirca Paints India ranks better than 88.29% on this metric.
Sirca Paints India (NSE:SIRCA) 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.
Sirca Paints India Operating Margin % Related Terms
Sirca Paints India Operating Margin % Historical Data
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The historical data trend for Sirca Paints India'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:SIRCA vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Sirca Paints India'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.
Sirca Paints India Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sirca Paints India's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sirca Paints India'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.
Sirca Paints India'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.
Sirca Paints India (NSE:SIRCA) has a Operating Margin % of 16.96% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Sirca Paints India and its competitors. This is 20% below median its historical median of 21.16. Over the past decade, Sirca Paints India's Operating Margin % has ranged from 14.09 to 29.08. According to the industry distribution chart, Sirca Paints India ranks #185 out of 1580 companies in the Chemicals industry, placing it in the top 11.7%.
Is Sirca Paints India's Operating Margin % too high?
Sirca Paints India's current Operating Margin % of 16.96% is 20% below median its 10-year median of 21.16. Over the past 10 years, this metric has ranged from a low of 14.09 to a high of 29.08. The Chemicals industry median Operating Margin % is 6.02. Sirca Paints India's value of 16.96% is 182% above this industry median. Based on the distribution chart, Sirca Paints India ranks #185 out of 1580 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Sirca Paints India has a GF Score™ of 97/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sirca Paints India's Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Sirca Paints India ranks #185 out of 1580 companies for Operating Margin %. This places Sirca Paints India in the top 12% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.02. Sirca Paints India's value of 16.96% is 182% above this benchmark. Historically, Sirca Paints India's own Operating Margin % has ranged from 14.09 to 29.08 over the past decade. While the company's 10-year median is 21.16 vs. the industry median of 6.02, Sirca Paints India 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.02, based on 1,580 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. Sirca Paints India's current Operating Margin % of 16.96% is 182% 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 Sirca Paints India and its competitors. For the Chemicals industry, the median Operating Margin % is 6.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sirca Paints India's current Operating Margin % is 16.96%, which is 20% below median its own 10-year median of 21.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sirca Paints India stock overvalued right now?
Based on GuruFocus' analysis, Sirca Paints India (NSE:SIRCA) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹563.44, compared to a current price of ₹407.05 — trading 27.8% below its estimated fair value. The current Operating Margin % is 16.96%, which is 20% below median its 10-year median of 21.16 and 182% above the Chemicals industry median of 6.02. Sirca Paints India's overall GF Score™ is 97/100 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 Sirca Paints India (NSE:SIRCA), the current Operating Margin % is 16.96% 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 Sirca Paints India (NSE:SIRCA) Overvalued in 2026?
Based on GuruFocus' analysis, Sirca Paints India stock appears to be undervalued.
The current stock price of ₹407.05 is trading 27.8% below its estimated GF Value™ of ₹563.44.
GuruFocus considers Sirca Paints India to be Modestly Undervalued.
Key valuation signals for NSE:SIRCA:
Operating Margin %: 16.96% (20% below median its 10-year median of 21.16)
GF Value™: ₹563.44 vs. price of ₹407.05 (27.8% below fair value)
Industry Position: 182% above the Chemicals median (#185 of 1580)
No single metric tells the full story. See the NSE:SIRCA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sirca Paints India Ltd is mainly engaged in the business of importing and distributing wood, glass, and metal coatings in India. The company has also started its production of wall paints, melamine products, N.C products, and economical P.U. products in technical collaboration with Sirca S.P.A., Italy. Its product range includes all PU products, stains, special effects, acrylic PU, polyester, wall paints, UV products, etc., which are sold under brands like Wembley, Oikos, Unico, and Sirca. The company currently operates in only one reportable business segment, Wood Coating Products.
97GF Score
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