Net profit margin for any company is calculated by dividing net earnings by net revenue and then multiplying by 100. It is known as the amount of earnings left after subtracting all the expenses. It indicates the profitability of the company. It helps the investors analyse if a company is generating enough profit through its management.
Here are 3 stocks with high net profit margin of more than 50%
Tata Investment Corporation Limited
Share prices of Tata Investment Ltd opened at Rs. 2,430 and reached its intra- day high of Rs. 2,445.25 in the first half.
The stock gained 0.03% on Thursday. The stock returned 22.07% in six months and 191.17% in the last 3 years.
Tata Investment Corporation Limited, a subsidiary of Tata Sons was established back in 1937. In that era, the company was known as The Investment Corporation of India Limited. It is a non- banking financial company. It is involved in investments related to long- term investments such as equity shares and equity- related securities.
With a market capitalization of Rs. 12,253.17 crore, the company made a revenue of Rs. 151.6 crore in Q1FY24 which is a jump of 394.29% from Rs. 30.67 crore in the last quarter. The net profit for Q1FY24 is Rs. 146.81 crore increased by 623.92% from Rs. 20.28 crore in the last quarter.
The net profit margin for the last quarter was 41.73% which increased to 88.25% for the current one.
Indian Energy Exchange Limited
Share prices of IEX Limited opened at Rs. 124.8 and reached its intra- day high of Rs. 125.7. The stock fell by 0.5% at the end of the trading day. The stock lost 12.66% in six months but grew by 94.35% in the last 3 years.
Indian Energy Exchange Limited acts as an electronic marketplace for various power suppliers including state electricity boards, open access consumers, power traders and producers. It basically lets its participants trade contracts related to power and energy.
With a market capitalization of Rs. 11,101 crore, the company made a revenue of Rs. 104.04 crore in Q1FY24 which is a fall of 2.79% from Rs. 107.03 crore in the last quarter. The net profit for Q1FY24 is Rs. 75.83 crore decreased by 14.16% from Rs. 88.34 crore in the last quarter.
The net profit margin for the last quarter was 77.36% which decreased to 71.33% for the current one.
Central Depository Services
Share prices of CDSL opened at Rs. 1,154.6 and reached its intra- day high of Rs. 1159.4 in the first half. The stock prices dropped by 1.5%. The stock returned a total of 18.17% in six months and 172.05% in the last 3 years.
CDSL in India is known to be the second securities depository institution. Established back in 1999, CDSL is focused to provide safe and secure depository services. The institution generates its revenue through annual charges paid by every listed company as per SEBIs guidelines.
With a market capitalization of Rs. 12,166 crore, the company made a revenue of Rs. 149.68 crore in Q1FY24 which is a jump of 19.96% from Rs. 124.77 crore in the last quarter. The net profit for Q1FY24 is Rs. 73.57 crore increased by 16.59% from Rs. 63.1 crore in the last quarter.
The net profit margin for the last quarter was 51.57% which decreased to 49.98% for the current one.
Written by Bhumika Khandelwal
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