Net profit margin, also known as net margin, is a financial metric that represents the percentage of profit a company retains from its revenue after deducting all expenses, including operating costs, interest, and taxes.
It acts as a profitability indicator that indicates how good the company’s pricing strategy is, how effectively the organization can control expenses, and how efficiently it uses resources of the company to produce goods or services.
Here are some of the Tata Group stocks that have generated Net Profit Margins of upto 25 percent
Tata Elxsi
Tata Elxsi is part of the famous Indian conglomerate the Tata Group, it is among the world’s leading design and technology services providers across industries such as automotive, broadcast, communications, healthcare and transportation.
With a market capitalization of Rs. 44,303 Crores, the shares of Tata Elxsi Limited closed at Rs. 7,113.95, down 0.59 percent from its previous day’s close price of Rs. 7,156.25.
Its revenue from operations grew by 12.96 percent YoY from Rs. 3,145 Crores in FY23 to Rs. 3,552 Crores in FY24, accompanied by profits of Rs. 755 Crores to Rs. 792 Crores. In FY24 it reported a Net Profit Margin of 22.29 percent.
Tata Consultancy Services
Tata Consultancy Services is an IT services, consulting, and business solutions organization, it offers a wide range of consulting-led, cognitive-powered, integrated portfolios of business, technology, and engineering services and solutions.
With a market capitalization of Rs. 13,89,110 Crores, the shares of Tata Consultancy Services Limited closed at Rs. 3,839.35, down 0.63 percent from its previous day’s close price of Rs. 3,863.75.
Its revenue from operations grew by 6.85 percent YoY from Rs. 2,25,458 Crores in FY23 to Rs. 2,40,893 Crores in FY24, accompanied by profits of Rs. 42,303 Crores to Rs. 46,099 Crores. In FY24 it reported a Net Profit Margin of 19.13 percent.
TRENT
Trent Limited is part of the Tata Group, It operates a portfolio of retail concepts by engaging in the retailing of apparel, footwear, accessories, toys, games, food, grocery & non-food products through various of its retail formats/ concepts.
With a market capitalization of Rs. 1,61,167 Crores, the shares of Trent Limited closed at Rs. 4,533.70, down 2.41 percent from its previous day’s close price of Rs. 4,645.75. It has delivered multibagger returns of 226 percent in a year.
Its revenue from operations grew by 50 percent YoY from Rs. 8,242 Crores in FY23 to Rs. 12,375 Crores in FY24, accompanied by profits of Rs. 394 Crores to Rs. 1,477 Crores. In FY24 it reported a Net Profit Margin of 11.93 percent.
Written by: Bharath K.S
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