Net profit margin is one of the most commonly used ratios by investors. The ratio computes the percentage of profit a company generates from total revenue after deducting all expenses.
Here are four stocks with a net profit margin of more than 40 percent
Suzlon Energy
Suzlon Energy Limited, headquartered in Pune, India, is a multinational Indian wind turbine manufacturer. It was previously ranked as the world’s fifth-largest supplier of wind turbines by MAKE.
On Friday’s session company’s shares opened at Rs 40 per share, a 2 percent increase over its previous close of Rs 39.2. The company has a market capitalization of Rs 55,060 crores.
Net revenue decreased by 0.9 percent year on year, from Rs 1,430 crores in Q2FY23 to Rs 1,417 crores in Q2FY24, according to the company. Furthermore, net profit increased by 81% year on year, from Rs 56 crores in Q2FY23 to Rs 102 crores in Q2FY24.
The share price of Suzlon Energy Ltd has increased by 302 percent in the last six months and by 278 percent year to date. For instance, if you invested Rs 1 lakh six months ago, the current value would be Rs 4.02 lakhs. With a Net Profit Margin of 48 percent.
SJVN
The company SJVN is in the energy generation business. The company also offers consulting services for projects involving hydropower.
The company’s shares opened at Rs 81.3 per share on Friday, up 0.06 percent from the previous close of Rs 81.25. The company is worth Rs 31,730 crores on the stock exchange.
The company has reported that net revenue decreased by 1.1 percent year on year from Rs 880.74 crores in Q2FY23 to Rs 870.74 crores in Q2FY24. In addition, net profit declined 2.1 percent year on year, from Rs 451.07 crores in Q2FY23 to Rs 441.35 crores in Q2FY24.
With a net profit margin of 46%, the share price of SJVN Ltd. has increased by 130% year to date and by 125% over the last six months. For example, the current value of an investment made six months ago of Rs 1 lakh would be Rs 2.25 lakhs.
Oberoi Realty
Oberoi Realty Ltd is a Mumbai-based real estate development firm. It is a subsidiary of Oberoi Realty Group, specializing in residential, office space, retail, hospitality, and social infrastructure developments.
The company’s shares opened Friday’s session at Rs 1,413.90, up 0.06 percent from the previous close of Rs 1,404.95 per share. The market value of the company is Rs 50,830 crores.
Net revenue increased 393.3 percent year on year, from Rs 128.91 crores in Q2FY23 to Rs 636.01 crores in Q2FY24, according to the company report. Furthermore, net profit increased by 40% year on year, from Rs 139.2 crores in Q2FY23 to Rs 194.35 crores in Q2FY24.
Oberoi Realty Ltd’s share price has increased by 51 percent in the last six months and by 60 percent year to date, with a Net Profit Margin of 45.43 percent.
Central Depository Services (India)
Central Depository Services Limited is a Market Infrastructure Institution (MII) that provides services to all market participants, including exchanges, clearing corporations, depository participants (DPs), issuers, and investors. It makes it easier to hold securities in dematerialized form and to conduct securities transactions.
On Friday’s session company’s shares opened at Rs 1,805.00 per share, a 0.54 percent decrease over its previous close of Rs 1,792.10. The company has a market capitalization of Rs 18,650 crores.
The company has reported that net revenue increased by 39.1 percent year on year from Rs 148.95 crores in Q2FY23 to Rs 207.31 crores in Q2FY24. Furthermore, their net profit increased from Rs 80.41 crores in Q2FY23 to Rs 108.85 crores in Q2FY24, a 35.3 percent year-over-year increase.
Central Depository Services Limited’s share price has increased by 80.5 percent in the last six months and by 54.45 percent year to date, with a Net Profit Margin of 49.71 percent.
Written by Sriram KV
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