The “Operating Profit Margin” usually measures how much profit a company makes on every rupee of sales after paying for variable costs of production but before the interest or tax payments.
The margin is calculated by dividing the company’s operating income by its net sales. The higher the ratios, the better it is, thereby illustrating the efficiency in operations and turning sales into profits.
Listed below are four NBFC stocks under the ‘small-cap’ category that possess an operating profit margin (OPM) of up to 80 percent:
Can Fin Homes Limited
With a market capitalization of Rs 10,346.08 crores, the stocks of Can Fin Homes Limited started their trading session on Friday at Rs 779 and currently trades at Rs 776.85, a flat movement compared to the previous closing level of Rs 776.30 apiece.
During the recent financial quarters, the company’s basic business parameters, viz, its operating revenues as well as after-tax profits, showed some positive movements with the former increasing from Rs 901 crores during Q3FY24 to Rs 927 crores during Q4FY24, and the latter, keeping the timeframe the same, rose from Rs 200 crores to Rs 209 crores.
In addition to the above, the company reported annual operating/financing profit numbers of Rs 969 crores for FY24, representing an OPM of approximately 27 percent for the financial year.
AAVAS Financiers Limited
With a market capitalization of Rs 12,638.22 crores, the stocks of AAVAS Financiers Limited started their trading session on Friday at Rs 1597.70 and currently trades at Rs 1597.30, slipping approximately 0.12 percent compared to the previous closing level of Rs 1599.25 apiece.
During the recent financial quarters, the company’s basic business parameters, viz, its operating revenues as well as after-tax profits, showed some positive movements with the former increasing from Rs 508 crores during Q3FY24 to Rs 546 crores during Q4FY24, and the latter, keeping the timeframe the same, rose from Rs 117 crores to Rs 143 crores.
In addition to the above, the company reported annual operating/financing profit numbers of Rs 654 crores for FY24, representing an OPM of approximately 32 percent for the financial year.
Paisalo Digital Limited
With a market capitalization of Rs 6,157.89 crores, the stocks of Paisalo Digital Limited started their trading session on Friday at Rs 68.84 and currently trades at Rs 68.90, gaining approximately 0.70 percent compared to the previous closing level of Rs 68.46 apiece.
During the recent financial quarters, the company’s basic business parameters, viz, its operating revenues as well as after-tax profits, showed movements in opposing directions with the former, on one end, increasing from Rs 183 crores during Q3FY24 to Rs 195 crores during Q4FY24, and the latter, on the other end, dipping from Rs 56 crores to Rs 37 crores.
In addition to the above, the company reported annual operating/financing profit numbers of Rs 244 crores for FY24, representing an OPM of approximately 37 percent for the financial year.
MAS Financial Services Limited
With a market capitalization of Rs 5,021.26 crores, the stocks of MAS Financial Services Limited started their trading session on Friday at Rs 309.35 and currently trades at Rs 306.20, gaining approximately 1.90 percent compared to the previous closing level of Rs 300.55 apiece.
During the recent financial quarters, the company’s basic business parameters, viz, its operating revenues as well as after-tax profits, showed some positive movements with the former increasing from Rs 335 crores during Q3FY24 to Rs 346 crores during Q4FY24, and the latter, keeping the timeframe the same, rose from Rs 64 crores to Rs 70 crores.
In addition to the above, the company reported annual operating profit numbers of Rs 984 crores for FY24, representing an OPM of approximately 77 percent for the financial year.
Written by Amit Madnani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
