UltraTech CementUCLQF 96 Operating Margin % is 17.02% as of Mar. 2026, which is 20% above its 10-year median of 14.17. GuruFocus rates UCLQF with a GF Score™ of 96/100 and a GF Value™ of $121.56. The stock has 2 warning signs investors should review. Among 405 Building Materials companies, UltraTech Cement ranks better than 73.83% 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.
UltraTech Cement Operating Margin % Related Terms
UltraTech Cement Operating Margin % Historical Data
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The historical data trend for UltraTech Cement'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.
UCLQF vs CRH, VMC, MLM: Operating Margin % Comparison
For the Building Materials subindustry, UltraTech Cement'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.
UltraTech Cement Operating Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, UltraTech Cement's Operating Margin % distribution charts can be found below:
* The bar in red indicates where UltraTech Cement'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.
UltraTech Cement'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.
UltraTech Cement (UCLQF) has a Operating Margin % of 17.02% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on UltraTech Cement and its competitors. This is 20% above median its historical median of 14.17. Over the past decade, UltraTech Cement's Operating Margin % has ranged from 11.25 to 19.99. According to the industry distribution chart, UltraTech Cement ranks #106 out of 405 companies in the Building Materials industry, placing it in the top 26.2%.
Is UltraTech Cement's Operating Margin % too high?
UltraTech Cement's current Operating Margin % of 17.02% is 20% above median its 10-year median of 14.17. Over the past 10 years, this metric has ranged from a low of 11.25 to a high of 19.99. The Building Materials industry median Operating Margin % is 7.64. UltraTech Cement's value of 17.02% is 122.8% above this industry median. Based on the distribution chart, UltraTech Cement ranks #106 out of 405 companies in the Building Materials industry, which is above the industry midpoint. Overall, UltraTech Cement has a GF Score™ of 96/100, reflecting its overall financial health beyond just this single metric.
How does UltraTech Cement's Operating Margin % compare to CRH and VMC?
According to the Building Materials industry distribution chart, UltraTech Cement ranks #106 out of 405 companies for Operating Margin %. This puts UltraTech Cement in the upper half of its industry. The industry median Operating Margin % is 7.64. UltraTech Cement's value of 17.02% is 122.8% above this benchmark. Historically, UltraTech Cement's own Operating Margin % has ranged from 11.25 to 19.99 over the past decade. While the company's 10-year median is 14.17 vs. the industry median of 7.64, UltraTech Cement 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 Building Materials company?
The median Operating Margin % among Building Materials companies is 7.64, based on 405 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. UltraTech Cement's current Operating Margin % of 17.02% is 122.8% 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 UltraTech Cement and its competitors. For the Building Materials industry, the median Operating Margin % is 7.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. UltraTech Cement's current Operating Margin % is 17.02%, which is 20% above median its own 10-year median of 14.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is UltraTech Cement stock overvalued right now?
UltraTech Cement (UCLQF) has a current Operating Margin % of 17.02%. The stock's GF Value™ is $121.56, compared to a current price of $103.00 — trading 15.3% below its estimated fair value. The current Operating Margin % is 17.02%, which is 20% above median its 10-year median of 14.17 and 122.8% above the Building Materials industry median of 7.64. UltraTech Cement's overall GF Score™ is 96/100 with 2 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 UltraTech Cement (UCLQF), the current Operating Margin % is 17.02% 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 UltraTech Cement (UCLQF) Overvalued in 2026?
Based on GuruFocus' analysis, UltraTech Cement stock appears to be undervalued.
The current stock price of $103.00 is trading 15.3% below its estimated GF Value™ of $121.56.
Key valuation signals for UCLQF:
Operating Margin %: 17.02% (20% above median its 10-year median of 14.17)
GF Value™: $121.56 vs. price of $103.00 (15.3% below fair value)
Industry Position: 122.8% above the Building Materials median (#106 of 405)
No single metric tells the full story. See the UCLQF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
UltraTech Cement Ltd produces and sells cement and cement-related products. The company generates the vast majority of its revenue in India. The company's product portfolio includes Ordinary Portland cement, Portland blast-furnace slag cement, and Portland Pozzolana cement. Ordinary Portland cement is used for a wide range of applications including concrete products, masonry, and plastering. The firm's customers are in the building and construction industries. Geographically, it operates in India as well as in other countries, of which India derives key revenue.
96GF Score
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