Consistent winners! 9 multibaggers boast of 25% profit margins for four consecutive quarters
ETMarkets analysed the results of BSE500 companies in FY24 and found that about 45 companies have consistently maintained profit margins of at least or over 25% throughout the year. Out of these, 9 companies have delivered multibagger returns to investors in the last one year period.
A profit margin is a key indicator to measure how much money a company keeps as profit after paying for its costs. A high profit margin of 25% or above is a sign that a company is doing well financially, making it more attractive to investors.
The 9 multibaggers which saw sustained higher profit margins include Motilal Oswal, Tata Investment, Hindustan Zinc, REC, The Phoenix Mills, among others.
Out of the above filtered pack, Motilal Oswal has delivered the highest returns of 274% in the last one year period. The company has reported a PAT margin of over 30% consistently in the last four quarters.
In any top performing companies or stocks list, a Tata group firm usually finds its place in the mix. Tata Investment Corp, an NBFC and investment manager, nearly tripled investors' wealth in the reporting period. The company has reported profit margins of up to 88% in FY24, making it one of the attractive investment opportunities in the list.
Technically, the stock is trading above key moving averages like the 20-day and 50-day SMA. And momentum readings like the 14-day RSI are in rising mode and not overbought, which augurs well for the intermediate uptrend to continue.
Subash Gangadharan of HDFC Securities has recommended a buy on
