Tatva Chintan Pharma ChemNSE:TATVA -2.11%80 Operating Margin % is 13.70% as of Mar. 2026, which is 8% below its 10-year median of 14.89. GuruFocus rates NSE:TATVA with a GF Score™ of 80/100 and a GF Value™ of ₹1,453.22 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,585 Chemicals companies, Tatva Chintan Pharma Chem ranks better than 71.55% 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.
Tatva Chintan Pharma Chem Operating Margin % Related Terms
Tatva Chintan Pharma 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:TATVA vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Tatva Chintan Pharma 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.
Tatva Chintan Pharma Chem Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Tatva Chintan Pharma Chem's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Tatva Chintan Pharma 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.
Tatva Chintan Pharma 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.
Tatva Chintan Pharma Chem (NSE:TATVA) has a Operating Margin % of 13.70% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Tatva Chintan Pharma Chem and its competitors. This is near median its historical median of 14.89. Over the past decade, Tatva Chintan Pharma Chem's Operating Margin % has ranged from 1.71 to 23.37. According to the industry distribution chart, Tatva Chintan Pharma Chem ranks #451 out of 1585 companies in the Chemicals industry, placing it in the top 28.5%.
Is Tatva Chintan Pharma Chem's Operating Margin % too high?
Tatva Chintan Pharma Chem's current Operating Margin % of 13.70% is near median its 10-year median of 14.89. Over the past 10 years, this metric has ranged from a low of 1.71 to a high of 23.37. The Chemicals industry median Operating Margin % is 6.02. Tatva Chintan Pharma Chem's value of 13.70% is 127.6% above this industry median. Based on the distribution chart, Tatva Chintan Pharma Chem ranks #451 out of 1585 companies in the Chemicals industry, which is above the industry midpoint. Overall, Tatva Chintan Pharma Chem has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tatva Chintan Pharma Chem's Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Tatva Chintan Pharma Chem ranks #451 out of 1585 companies for Operating Margin %. This puts Tatva Chintan Pharma Chem in the upper half of its industry. The industry median Operating Margin % is 6.02. Tatva Chintan Pharma Chem's value of 13.70% is 127.6% above this benchmark. Historically, Tatva Chintan Pharma Chem's own Operating Margin % has ranged from 1.71 to 23.37 over the past decade. While the company's 10-year median is 14.89 vs. the industry median of 6.02, Tatva Chintan Pharma Chem 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 1,585 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. Tatva Chintan Pharma Chem's current Operating Margin % of 13.70% is 127.6% 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 Tatva Chintan Pharma 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. Tatva Chintan Pharma Chem's current Operating Margin % is 13.70%, which is near median its own 10-year median of 14.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tatva Chintan Pharma Chem stock overvalued right now?
Based on GuruFocus' analysis, Tatva Chintan Pharma Chem (NSE:TATVA) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,453.22, compared to a current price of ₹1,180.70 — trading 18.8% below its estimated fair value. The current Operating Margin % is 13.70%, which is near median its 10-year median of 14.89 and 127.6% above the Chemicals industry median of 6.02. Tatva Chintan Pharma Chem's overall GF Score™ is 80/100 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 Tatva Chintan Pharma Chem (NSE:TATVA), the current Operating Margin % is 13.70% 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 Tatva Chintan Pharma Chem (NSE:TATVA) Overvalued in 2026?
Based on GuruFocus' analysis, Tatva Chintan Pharma Chem stock appears to be undervalued.
The current stock price of ₹1,180.70 is trading 18.8% below its estimated GF Value™ of ₹1,453.22.
GuruFocus considers Tatva Chintan Pharma Chem to be Modestly Undervalued.
Key valuation signals for NSE:TATVA:
Operating Margin %: 13.70% (near median its 10-year median of 14.89)
GF Value™: ₹1,453.22 vs. price of ₹1,180.70 (18.8% below fair value)
Industry Position: 127.6% above the Chemicals median (#451 of 1585)
No single metric tells the full story. See the NSE:TATVA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tatva Chintan Pharma Chem Ltd is a specialty chemicals manufacturing company engaged in the manufacturing and selling of specialty chemicals, Pharma and Agro intermediates, Quaternary Compounds, and Quats. The company's product portfolio includes structure-directing agents, phase transfer catalysts, electrolyte salts for supercapacitor batteries, pharmaceutical and agrochemical intermediates and other specialty chemicals. The company sells its products in domestic as well as overseas markets, with the majority of revenue coming from overseas markets.
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