VST IndustriesNSE:VSTIND -0.61%84 Operating Margin % is 31.77% as of Mar. 2026, which is 15% above its 10-year median of 27.67. GuruFocus rates NSE:VSTIND with a GF Score™ of 84/100 and a GF Value™ of ₹346.81 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 48 Tobacco Products companies, VST Industries ranks better than 75% 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.
VST Industries Operating Margin % Related Terms
VST Industries Operating Margin % Historical Data
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The historical data trend for VST Industries'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:VSTIND vs PM, MO, TPB: Operating Margin % Comparison
For the Tobacco subindustry, VST Industries'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.
VST Industries Operating Margin % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, VST Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where VST Industries'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.
VST Industries'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.
VST Industries (NSE:VSTIND) has a Operating Margin % of 31.77% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on VST Industries and its competitors. This is 15% above median its historical median of 27.67. Over the past decade, VST Industries' Operating Margin % has ranged from 16.80 to 34.31. According to the industry distribution chart, VST Industries ranks #12 out of 48 companies in the Tobacco Products industry, placing it in the top 25%.
Is VST Industries' Operating Margin % too high?
VST Industries' current Operating Margin % of 31.77% is 15% above median its 10-year median of 27.67. Over the past 10 years, this metric has ranged from a low of 16.80 to a high of 34.31. The Tobacco Products industry median Operating Margin % is 9.37. VST Industries' value of 31.77% is 239.2% above this industry median. Based on the distribution chart, VST Industries ranks #12 out of 48 companies in the Tobacco Products industry, which is in the top quartile — a strong position relative to peers. Overall, VST Industries has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does VST Industries' Operating Margin % compare to PM and MO?
According to the Tobacco Products industry distribution chart, VST Industries ranks #12 out of 48 companies for Operating Margin %. This places VST Industries in the top 25% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 9.37. VST Industries' value of 31.77% is 239.2% above this benchmark. Historically, VST Industries' own Operating Margin % has ranged from 16.80 to 34.31 over the past decade. While the company's 10-year median is 27.67 vs. the industry median of 9.37, VST Industries 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 Tobacco Products company?
The median Operating Margin % among Tobacco Products companies is 9.37, based on 48 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. VST Industries's current Operating Margin % of 31.77% is 239.2% 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 VST Industries and its competitors. For the Tobacco Products industry, the median Operating Margin % is 9.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. VST Industries's current Operating Margin % is 31.77%, which is 15% above median its own 10-year median of 27.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is VST Industries stock overvalued right now?
Based on GuruFocus' analysis, VST Industries (NSE:VSTIND) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹346.81, compared to a current price of ₹260.70 — trading 24.8% below its estimated fair value. The current Operating Margin % is 31.77%, which is 15% above median its 10-year median of 27.67 and 239.2% above the Tobacco Products industry median of 9.37. VST Industries' overall GF Score™ is 84/100 with 4 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 VST Industries (NSE:VSTIND), the current Operating Margin % is 31.77% 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 VST Industries (NSE:VSTIND) Overvalued in 2026?
Based on GuruFocus' analysis, VST Industries stock appears to be undervalued.
The current stock price of ₹260.70 is trading 24.8% below its estimated GF Value™ of ₹346.81.
GuruFocus considers VST Industries to be Modestly Undervalued.
Key valuation signals for NSE:VSTIND:
Operating Margin %: 31.77% (15% above median its 10-year median of 27.67)
GF Value™: ₹346.81 vs. price of ₹260.70 (24.8% below fair value)
Industry Position: 239.2% above the Tobacco Products median (#12 of 48)
No single metric tells the full story. See the NSE:VSTIND stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
VST Industries Ltd manufactures and distributes cigarettes and unmanufactured tobacco under the brand names Charms, Charminar, Gold, Moments, and Zaffran. The company operates its business out of India. In terms of revenue from operations, a majority comes from the sale of cigarettes and the remainder generally comes from the sale of unmanufactured tobacco. It has a single operating segment which is. Tobacco and related products. Geographical segments consist of sales within India and sales outside of India with a majority derived from India.
84GF Score
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