The profit margin is the amount of money left over after subtracting all expenditures. It is a percentage that indicates how profitable the company’s pricing strategy is, how effectively the organization can control expenses, and how efficiently it uses raw resources to produce products or services.
The net profit margin is the amount of profit earned by a company as a percentage of total sales.
Listed below are three Defence stocks with High Net Profit Margins of up to 28 percent
Data Patterns (India) Ltd
Data Patterns Ltd shares were trading at Rs 2358.80 per share on Tuesday, up 0.15 percent from the previous close price.
The company has an excellent net profit margin of 27.34 percent and an operating margin of 38.05 percent in FY 22-23.
The company’s revenue for the June quarter climbed by 31 percent to Rs 89 crore, up from Rs 68 crore in the previous year’s similar period (Q1FY23). During the same year, the company’s net profit increased by 78 percent, from Rs 14 crore to Rs 25 crore.
The company’s stock has delivered a multibagger return of about 182 percent in the last year, and 84 percent in the last six months.
Data Patterns provides the complete range of defence and aerospace systems, including space, air, land, and sea. It provides solutions for strategic aerospace and defence electronics systems.
Hindustan Aeronautics Ltd
On Tuesday, the shares of Hindustan Aeronautics Ltd were trading at Rs 3,865 a share, up 1.15 percent from the previous close price.
During FY 22-23, the company recorded a healthy net profit margin of 21.63 percent and an operating margin of 24.37 percent.
The company’s revenue for the June quarter increased by 8 percent to Rs 3,915
crore, up from Rs 3,622 crore in the corresponding quarter of the previous year (Q1FY23). During the same year, the company’s net profit climbed by 33 percent, to Rs 810 crore from Rs 607 crore.
In the last year, the company’s stock has delivered a return of 71 percent, and 49 percent in the last six months.
Hindustan Aeronautics manufactures aircraft and helicopters, as well as repairs and maintenance of aircraft and helicopters.
Taneja Aerospace and Aviation Ltd
On Tuesday, the shares of Taneja Aerospace and Aviation Ltd were trading at Rs 297.80 a share, up 8.56 percent from the previous close price.
During FY 22-23, the company reported a strong net profit margin of 28.26 percent and an operating margin of 53.67 percent.
The company’s revenue for the June quarter increased by 23 percent to Rs 7.57 crore, up from Rs 6.16 crore in the corresponding quarter of the previous year (Q1FY23). During the same year, the company’s net profit climbed by 88 percent, to Rs 3.44 crore from Rs 1.83 crore.
In the last six months, the company’s stock has delivered a multibagger return of around 152 percent, and 168 percent in the last year.
Taneja Aerospace & Aviation Ltd manufactures and sells numerous parts and components to the aviation sector, as well as offers Airfield & MRO and ancillary services.
Written by Omkar Chitnis
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