The “Operating Profit Margin” (OPM) measures how much profit a company makes on a rupee of sales after considering the variable costs of production but before the payment of interest or tax. OPM is calculated as a ratio of the company’s operating income and its net sales. The higher the OPM ratios, the better the financial position of a company.
Listed below are three stocks under the ‘mid-cap’ category that are debt-free and reported OPM of more than 25 percent:
Vinati Organics Limited
With a market capitalization of Rs 17,806.48 crores, the stocks of Vinati Organics Limited are currently trading at Rs 1,732.45, a flat movement as compared to the previous close of Rs 1,731.05 apiece.
The company, during the recent financial years, reported an increase in their basic business indicators such as operating revenues as well as after-tax profits with the former moving up from Rs 1,615.51 crores during FY21-22 to Rs 2,078.21 crores during FY22-23, and, the latter shifting from Rs 346.62 crores to Rs 457.97 crores.
Enjoying a ‘debt-free’ status, the company has also reported an increase in its basic margin ratio such as the ‘operating profit margin’ and the same has seen decent growth recently from 27.8 percent during FY21-22 to 29.5 percent during FY22-23.
Central Depository Services (India) Limited
With a market capitalization of Rs 18,068 crores, the stocks of Central Depository Services (India) Limited are currently trading at Rs 1,740, slipping around 2.20 percent as compared to the previous close of Rs 1,779.15 apiece.
The company, during the recent financial years, reported opposing movements as far as the basic business indicators such as operating revenues and after-tax profits are concerned.
The former, on one end, moved up marginally from Rs 551.33 crores during FY21-22 to Rs 555.09 crores during FY22-23, and, the latter, on the other end, shifted down from Rs 311.81 crores to Rs 275.96 crores.
Enjoying a ‘debt-free’ status, the company, even with a reduction in numbers, reported healthy margin ratios, one of which is the ‘operating profit margin’ witnessing a down movement from 74.3 percent during FY21-22 to 66.6 percent during FY22-23.
BSE Limited
With a market capitalization of Rs 31,120 crores, the stocks of BSE Limited are currently trading at Rs 2,275.60, slipping around 5.63 percent as compared to the previous close of Rs 2,411.30 apiece.
The company, during the recent financial years, reported opposing movements as far as the basic business indicators such as operating revenues and after-tax profits are concerned.
The former, on one end, moved up marginally from Rs 808.93 crores during FY21-22 to Rs 874.2 crores during FY22-23, and, the latter, on the other end, shifted down from Rs 244.93 crores to Rs 205.65 crores.
Enjoying a ‘debt-free’ status, the company, even with a reduction in numbers, reported healthy margin ratios, one of which is the ‘operating profit margin’ witnessing a down movement from 38.3 percent during FY21-22 to 29.7 percent during FY22-23.
Written by Amit Madnani
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