The percentage of profit a business makes from its revenue is measured by a financial ratio called profit margin. It shows the profit the business makes for each rupee of revenue obtained and is expressed as a percentage.
For example,(Rs 56,000/Rs 100,000) x 100. A 56% profit margin indicates the company earns 56 cents in profit for every dollar it collects
Here are three Small-cap stocks with an Increase in Net Profit Margin of up to 17%
Ingersoll-Rand Ltd.
Ingersoll Rand India Ltd is engaged in the business of manufacturing and selling industrial air compressors and offers related services such as installation, commissioning, and maintenance, providing services and solutions to increase industrial productivity and efficiency
Ingersoll-rand Ltd is a small-cap stock with a market capitalization of Rs 9,226.06 crore, the company’s shares were trading at 2,922.60 per share, a decrease of 0.96 percent from its previous closing price of Rs 2950.90 a share.
Net profit Margin has increased by 7.44 percent points, i.e., from 12.1 percent in FY 21-23 to 15.87 percent in FY 22-23.
The company’s revenue increased by 26.47 percent from 909.9 Cr in FY22 to 1,150.79 Cr in FY23 and during the same period, profits increased by 65.8 percent from 110.14 Cr to 182.65 Cr.
MPS Ltd.
MPS is a platform solutions and learning company that powers corporate research and education. Because of the confluence of shorter attention spans, rising digital consumption, and recent advancements in AI/ML, MPS has seen a new growth trajectory.
MPS Ltd is a small-cap stock with a market capitalization of Rs 2,592.73 crore, the company’s shares were trading at 1,517.90 per share, down by 0.65 percent from its previous day’s close price of Rs 1,527.90 a share.
Net profit Margin has increased by 12.2 percent points, i.e., from 19.41 percent in FY 21-23 to 21.79 percent in FY 22-23.
The company’s revenue increased by 2.34 percent from 126.6 Cr in FY22 to 129.57 Cr in FY23 and during the same period, profits increased by 11.84 percent from 26.85 Cr to 30.03 Cr.
Natco Pharma Ltd
Natco Pharma Ltd is a vertically integrated, research and development-focused pharmaceutical company engaged in developing, manufacturing, and marketing complex products for niche therapeutic areas.
Natco Pharma Ltd is a small-cap stock with a market capitalization of Rs 14,045.80 crore, the company’s shares were trading at 784.20 per share, a decrease of 1.18 percent from the previous closing price of Rs 793.55 a share.
Net profit Margin has increased by 17.64 percent points, i.e., from 8.74 percent in FY 21-23 to 26.42 percent in FY 22-23.
The company’s revenue increased by 39.19 percent from a loss of Rs 1,944.8 Cr in FY22 to Rs 2,707.1 Cr in FY23 and during the same time, profits increased by 320.7 percent from a loss of Rs 170 Cr to Rs 715.3 Cr.
Written by:- Abhishek Singh
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