Shankar Lal Rampal Dye ChemNSE:SRD +2.57%48 Operating Margin % is 4.83% as of Mar. 2026, which is 18% above its 10-year median of 4.11. GuruFocus rates NSE:SRD with a GF Score™ of 48/100 and a GF Value™ of ₹117.25 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 1,585 Chemicals companies, Shankar Lal Rampal Dye Chem ranks worse than 67.19% 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.
Shankar Lal Rampal Dye Chem Operating Margin % Related Terms
Shankar Lal Rampal Dye Chem 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.
NSE:SRD vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Shankar Lal Rampal Dye Chem'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.
Shankar Lal Rampal Dye Chem Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Shankar Lal Rampal Dye Chem's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Shankar Lal Rampal Dye Chem'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.
Shankar Lal Rampal Dye Chem'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.
Shankar Lal Rampal Dye Chem (NSE:SRD) has a Operating Margin % of 4.83% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Shankar Lal Rampal Dye Chem and its competitors. This is 18% above median its historical median of 4.11. Over the past decade, Shankar Lal Rampal Dye Chem's Operating Margin % has ranged from 1.32 to 12.30. According to the industry distribution chart, Shankar Lal Rampal Dye Chem ranks #1065 out of 1585 companies in the Chemicals industry, placing it in the top 67.2%.
Is Shankar Lal Rampal Dye Chem's Operating Margin % too high?
Shankar Lal Rampal Dye Chem's current Operating Margin % of 4.83% is 18% above median its 10-year median of 4.11. Over the past 10 years, this metric has ranged from a low of 1.32 to a high of 12.30. The Chemicals industry median Operating Margin % is 6.02. Shankar Lal Rampal Dye Chem's value of 4.83% is 19.8% below this industry median. Based on the distribution chart, Shankar Lal Rampal Dye Chem ranks #1065 out of 1585 companies in the Chemicals industry, which is below the industry midpoint. Overall, Shankar Lal Rampal Dye Chem has a GF Score™ of 48/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Shankar Lal Rampal Dye Chem's Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Shankar Lal Rampal Dye Chem ranks #1065 out of 1585 companies for Operating Margin %. This places Shankar Lal Rampal Dye Chem in the lower half of its industry. The industry median Operating Margin % is 6.02. Shankar Lal Rampal Dye Chem's value of 4.83% is 19.8% below this benchmark. Historically, Shankar Lal Rampal Dye Chem's own Operating Margin % has ranged from 1.32 to 12.30 over the past decade. While the company's 10-year median is 4.11 vs. the industry median of 6.02, Shankar Lal Rampal Dye Chem 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 a Chemicals company?
The median Operating Margin % among Chemicals companies is 6.02, based on 1,585 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. Shankar Lal Rampal Dye Chem's current Operating Margin % of 4.83% is 19.8% 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 Shankar Lal Rampal Dye Chem 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. Shankar Lal Rampal Dye Chem's current Operating Margin % is 4.83%, which is 18% above median its own 10-year median of 4.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shankar Lal Rampal Dye Chem stock overvalued right now?
Based on GuruFocus' analysis, Shankar Lal Rampal Dye Chem (NSE:SRD) is currently considered Possible Value Trap. The stock's GF Value™ is ₹117.25, compared to a current price of ₹41.18 — trading 64.9% below its estimated fair value. The current Operating Margin % is 4.83%, which is 18% above median its 10-year median of 4.11 and 19.8% below the Chemicals industry median of 6.02. Shankar Lal Rampal Dye Chem's overall GF Score™ is 48/100 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 Shankar Lal Rampal Dye Chem (NSE:SRD), the current Operating Margin % is 4.83% 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 Shankar Lal Rampal Dye Chem (NSE:SRD) Overvalued in 2026?
Based on GuruFocus' analysis, Shankar Lal Rampal Dye Chem stock appears to be undervalued.
The current stock price of ₹41.18 is trading 64.9% below its estimated GF Value™ of ₹117.25.
GuruFocus considers Shankar Lal Rampal Dye Chem to be Possible Value Trap.
Key valuation signals for NSE:SRD:
Operating Margin %: 4.83% (18% above median its 10-year median of 4.11)
GF Value™: ₹117.25 vs. price of ₹41.18 (64.9% below fair value)
Industry Position: 19.8% below the Chemicals median (#1065 of 1585)
No single metric tells the full story. See the NSE:SRD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shankar Lal Rampal Dye Chem Ltd is engaged in Trading in Dyes And Chemicals and allied products. The company is a trader, exporter, importer, and supplier of sulphur dyes, paraffin wax, phosphoric acid, sodium sulphide, hydrogen peroxide, citric acid monohydrate, phosphate chemicals, refined glycerine, and others. Its geographic revenue comes from Domestic Sales and Export Sales.
48GF Score
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