Synopsis: Below are the list of companies which are trading under Rs. 50 and has delivered Operating profit margin of more than 30 percent in Q2 Results
Stocks priced under Rs. 50 with an operating profit margin (OPM) above 30 percent represent companies that are efficiently managing their operations and generating strong profitability relative to their sales. These companies often offer high growth potential, attractive valuations, and opportunities for investors looking for cost-effective stocks with solid operational performance.
What is Operating Profit Margin and why is it important?
Operating Profit Margin (OPM) represents the portion of a company’s revenue remaining after covering all operating expenses, including salaries, rent, and raw materials, but before interest and taxes. It is calculated by dividing operating profit (EBIT) by total revenue and multiplying by 100. OPM indicates how effectively a company’s core operations generate profit from sales, independent of its financing or tax obligations.
Operating Profit Margin is important as it helps assess a company’s operational efficiency and ability to manage costs. A higher OPM shows that a company retains a larger portion of its revenue, making it attractive to investors and useful for comparing performance across companies or sectors. Monitoring OPM over time highlights profitability trends, enabling management to make better-informed strategic decisions.
Below are a list of stocks with high OPM
Indbank Merchant Banking Services Ltd
Indbank Merchant Banking Services Limited, based in Chennai and incorporated in 1989, is a subsidiary of Indian Bank that provides merchant banking, stock broking, and related financial services in India. Its offerings include public and rights issues, private placements, mergers and acquisitions advisory, project appraisals, stock broking across cash and derivatives markets, online trading, and distribution of mutual funds and other investment products.
Indbank Merchant Banking Services Ltd has a market value of Rs. 162.82 crore and is trading at Rs. 36.70, up by 1.75 percent from its previous day closing price of Rs. 36.07. The company’s P/E stands at 25.8x, which is higher than the industry P/E of 21.6x. The ROCE of 13.4 percent, and ROE of 9.67 percent, indicates the company’s financial position.
The company reported Q2 FY26 revenue of Rs. 6.28 crore, down 22.8 percent year-on-year from Rs. 8.13 crore in Q2 FY25 and 6.2 percent quarter-on-quarter from Rs. 6.69 crore in Q1 FY26. Net profit for the quarter stood at Rs. 1.86 crore, declining 43.6 percent YoY from Rs. 3.30 crore and 13.1 percent QoQ from Rs. 2.14 crore, indicating a slowdown in both revenue and profitability compared to previous periods.
In Q2 FY26, the company delivered an operating profit of Rs. 2.65 crore, resulting in a healthy operating profit margin of 42.2 percent, highlighting its ability to generate substantial returns from its core business activities.
Continental Securities Ltd
Continental Securities Limited is an Indian non-banking financial company (NBFC) headquartered in Jaipur and incorporated in 1990. It provides a range of financial services, including loans against property, gold and mortgage loans, personal loans, and business loans for micro, small, and medium enterprises, and also functions as a mutual fund distributor.
Continental Securities Ltd has a market value of Rs. 42.10 crore and is trading at Rs. 14.39, up by 0.56 percent from its previous day closing price of Rs. 14.31. The company’s P/E stands at 23.6x, which is higher than the industry P/E of 22.1x. The ROCE of 12.6 percent, and ROE of 9.16 percent, indicates the company’s financial position.
The company reported Q2 FY26 revenue of Rs. 0.96 crore, up 47.7 percent YoY from Rs. 0.65 crore in Q2 FY25 and 5.5 percent QoQ from Rs. 0.91 crore in Q1 FY26. Net profit for the quarter stood at Rs. 0.55 crore, rising 48.6 percent YoY from Rs. 0.37 crore and 14.6 percent QoQ from Rs. 0.48 crore, reflecting healthy growth in both revenue and profitability.
In Q2 FY26, the company reported an operating profit of Rs. 0.78 crore, up 14.71 percent from Rs. 0.68 crore in Q1 FY26 and a 50 percent increase from Rs. 0.52 crore in Q2 FY25. The operating profit margin for the quarter stood at 81.25 percent, reflecting strong efficiency in its core operations.
Jaiprakash Power Ventures Ltd
Jaiprakash Power Ventures Limited, founded in 1994 and based in New Delhi, operates in power generation and cement grinding in India. The company owns and runs hydro and thermal power plants, including the 400 MW Jaypee Vishnuprayag (Uttarakhand), 1320 MW Jaypee Nigrie, and 500 MW Jaypee Bina (both in Madhya Pradesh), and manages coal mines in Amelia and Bandha, Madhya Pradesh.
Jaiprakash Power Ventures Ltd has a market value of Rs. 13,158.64 crore and is trading at Rs. 19.21, down by 2.24 percent from its previous day closing price of Rs. 19.65. The company’s P/E stands at 17.8x, which is lower than the industry P/E of 27.1x. The ROE of 6.85 percent, ROCE of 10.3 percent and debt to equity ratio of 0.28, highlights the company’s financial position.
The company posted Q2 FY26 revenue of Rs. 1,438 crore, up 17.3 percent YoY from Rs. 1,226 crore in Q2 FY25 but down 9.2 percent QoQ from Rs. 1,583 crore in Q1 FY26. Net profit stood at Rs. 182 crore, nearly flat YoY (Rs. 183 crore) and down 34.5 percent QoQ from Rs. 278 crore, reflecting strong year-on-year top-line growth but a notable sequential decline in earnings.
In Q2 FY26, the company reported an operating profit of Rs. 471 crore, down 21.5 percent from Rs. 601 crore in Q1 FY26 but up 22 percent from Rs. 386 crore in Q2 FY25. The operating profit margin for the quarter stood at 33 percent, reflecting sustained efficiency in its core operations.
Sulabh Engineers & Services Ltd
Sulabh Engineers & Services Limited, based in Kanpur and incorporated in 1983, is a non-banking financial company in India that offers a wide range of lending and financial services. Its offerings include business expansion loans, working capital loans, equipment and property loans, asset financing, promoter and stressed asset funding, project financing, investment and asset management, corporate advisory, and back-office support services.
Sulabh Engineers & Services Ltd has a market value of Rs. 24.01 crore and is trading at Rs. 2.39, down by 5.16 percent from its previous day closing price of Rs. 2.52. The company’s P/E stands at 10.1x, which is lower than the industry P/E of 22.1x.It has an ROE of 7.14 percent, ROCE of 9.28, indicating the company’s financial position.
The company reported Q2 FY26 revenue of Rs. 1.17 crore, down 36.1 percent YoY from Rs. 1.83 crore in Q2 FY25 but up 19.4 percent QoQ from Rs. 0.98 crore in Q1 FY26. Net profit for the quarter stood at Rs. 0.54 crore, declining 28 percent YoY from Rs. 0.75 crore and decreasing by 12.9 percent QoQ from Rs. 0.62 crore, indicating a recovery sequentially despite a year-on-year contraction.
In Q2 FY26, the company reported an operating profit of Rs. 1.04 crore, up 23.8 percent from Rs. 0.84 crore in Q1 FY26 but down 15.4 percent from Rs. 1.23 crore in Q2 FY25. The operating profit margin for the quarter stood at 88.89 percent, reflecting strong operational efficiency.
Radhe Developers (India) Ltd
Radhe Developers (India) Limited, incorporated in 1995 and based in Ahmedabad, is a real estate development company in India. It undertakes the development of residential and commercial properties, plotted land, weekend homes, and social infrastructure projects.
Radhe Developers (India) Ltd has a market value of Rs. 106.32 crore and is trading at Rs. 2.03, up by 2.01 percent from its previous day closing price of Rs. 1.99. The company’s P/E stands at 19.2x, which is lower than the industry P/E of 35.1x. The ROE of 2.43 percent, ROCE of 2.63 percent and debt to equity ratio of 0.55, highlights the company’s financial position.
The company reported Q2 FY26 revenue of Rs. 2.49 crore, down 23.8 percent YoY from Rs. 3.27 crore in Q2 FY25 and 59.5 percent QoQ from Rs. 6.15 crore in Q1 FY26. Net profit stood at Rs. 0.79 crore, declining 47 percent YoY from Rs. 1.49 crore and 79.6 percent QoQ from Rs. 3.88 crore, reflecting significant sequential and yearly pressure on both revenue and profitability.
In Q2 FY26, the company reported an operating profit of Rs. 1.12 crore, down 76.4 percent from Rs. 4.74 crore in Q1 FY26 and down 44 percent from Rs. 2 crore in Q2 FY25. The operating profit margin for the quarter stood at 44.98 percent, reflecting operational efficiency.
Written by Akshay Sanghavi
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