Best mid-cap stocks with high net profit margins

Best mid-cap stocks with high net profit margins: Mid-cap stocks are companies with market capitalization between Rs 16800 and Rs 48900 crores. A high net profit margin (NPM) reflects a company’s ability to effectively control its costs and sell its products or services at a price well above cost. They usually have an advantage over others in their field.

A high NPM can be a starting point for further analysis to determine whether the company is a good investment option. In this article, we will look at the best mid-cap stocks with high net profit margins, their financial position, and company overview.

Best mid-cap stocks with high net profit margins

Phoenix Mills Ltd

Phoenix Mills Ltd. is a developer and operator of retail malls and has established its presence in the Indian real estate business through large-scale retail malls, entertainment complexes, commercial spaces or hospitality facilities.

Operations encompasses most aspects of real estate development, including planning, execution, marketing, management, maintenance, and sales. They have assets in Mumbai, Bengaluru, Chennai, Pune, Raipur, Agra, Indore, Lucknow, Bareilly and Ahmedabad.

It operates approximately 640,000 square meters of retail space across nine malls across six gateway cities in India and has developed over 2.11 million square meters of space across retail, hospitality, commercial and residential asset classes. In addition to the nine operating malls, four malls with approximately 450,000 square meters of retail space are under development.

The financial institution reported a 78% increase in operating revenue from Rs 1483 Cr in FY22 to Rs 2638 Cr in FY23, a growth of 7.5% on a four-year CAGR. PAT reported an increase of 493% from 268Cr in FY22 to 1477Cr in FY23, an increase of 33.63% on a 4-year CAGR. The reported NPM in FY23 was 55.81%, an increase of 234% over FY22. The three-year average NPM is 25%.

Nippon Life India Asset Management

Nippon India Mutual Fund was registered as an Asset Management Company (AMC) with the Securities and Exchange Board of India (SEBI) on June 30, 1995. Nippon India Mutual Fund (NIMF) was previously known as Reliance Mutual Fund. With effect from September 28, 2019, the name of the mutual fund was changed from Reliance Mutual Fund to Nippon India Mutual Fund.

NIMF was established to initiate various schemes to issue units to the public to contribute to the capital market and provide investment opportunities to investors. Sponsor Nippon Life Insurance Company Japan (NLI) holds 73.7% of the paid-up capital as of March 31, 2023.

The company’s product line includes mutual funds with active and passive schemes across equity, hybrid, debt, liquid and commodity categories. Managed accounts, including Alternative Investment Funds (AIFs); Portfolio Management Services (PMS); pension fund; Foreign business and advisory obligations.

As of March 31, 2023, Nippon AMC had 270 locations and folios valued at $1.96 billion, catering to 1.35 billion unique investors (market share: 36%). Total assets under management (AUM) is ₹3,62,981 crore and mutual fund AUM is ₹2,86,873 crore.

The Finance Ministry reported an increase of 3.3% in total revenue from Rs 1307 Cr in FY22 to Rs 1350 Cr in FY23 and a decline of 3% on a 4-year CAGR. PAT reported a decline of 3% from Rs 723 Cr in FY22 to Rs 744 Cr in FY23 and an increase of 10% on a 4-year CAGR. The reported NPM in FY23 was 53.56%, a decrease of 6% from FY22. The three-year average NPM is 58%.

Central Depository Service Company

Central Depository Services Limited (CDSL) was established in 1999 and became the first depository to cross 50 million active Demat accounts in 2021. CDSL is a market infrastructure institution (MII) that acts as a facilitator for holdings of dematerialized securities. Their deal.

They serve all market participants, including exchanges, clearing firms, depository participants (DPs), issuers, registrars and stock transfer agents (RTAs), and investors. Widespread in 98% of pin codes.

As of March 31, 2023, CDSL held 73% of the market share with over 8.3 billion investor accounts. The company has 585 depository participants and over 20,000 companies (issuers). CDSL also paid its highest ever dividend of Rs 16 per share.

As of September 30, 2023, the top five shareholders were BSE Limited (15%), Standard Charted Bank (7.18%), PPFAS Mutual Fund (4.67%), LIC India (4.40%) and Nippon Life India Trustee Limited (1.97). no see. %)

The Ministry of Finance reported a 2.5% increase in total revenue from Rs 605.9 Cr in FY22 to Rs 620.9 Cr in FY23, an increase of 26% on a four-year CAGR. PAT reported a decline of 11.5% from Rs 311.81 Cr in FY22 to Rs 275.96 Cr in FY23 and an increase of 25% on a 4-year CAGR. The reported NPM in FY23 was 49.71%, down 12% from FY22. The three-year average NPM is 55%. The decline in NPM is due to rising costs.

SJVN Limited

On May 24, 1988, SJVN Limited was established as a joint venture between the Government of India (GOI) and the Government of Himachal Pradesh (GOHP). It is a public company with 55% shares owned by GOI, 26.85% by GOHP and 18.15% by the general public. Its net worth as on March 31, 2023 is Rs 13821.97 crore. SJVN is engaged in the power generation business.

The company, which started with one project in one state – 1500 MW Nathpa Jhakri Hydroelectric Power Plant in Himachal Pradesh, has now completed eight projects with a total installed capacity of 2091.5 MW, 86 km of 400 KV transmission lines and 4438 MW under construction.

SJVN currently operates in India’s Himachal Pradesh, Uttarakhand, Bihar, Maharashtra, Uttar Pradesh, Punjab, Gujarat, Arunachal Pradesh, Rajasthan, Assam, Odisha, Mizoram, Madhya Pradesh and neighboring Nepal. Implementing or operating a project.

The company’s operating revenue amounted to ₹2938.35 crores, an increase of ₹521.35 crores (21.5%) over the previous year’s revenue of ₹2417.00 crores. Profit after tax (PAT) increased by ₹369.5 crores (37%) to ₹1359.30 crores compared to ₹989.80 crores in the previous year. The Net Profit Margin (NPM) for FY23 is 46.26% and the three-year average NPM is 51.26%.

Oberoi Real Estate

Oberoi Realty was first established on May 8, 1998 as Kingston Properties Private Limited. They are a Mumbai based real estate development company involved in residential, commercial, retail, social infrastructure and hospitality. With 40 years of experience and 43 projects at strategic locations across Mumbai, it has a total of 9.34 million sq ft of space and a built-up area of ​​32.8 million sq ft as of March 2023.

The company’s operating revenue reached ₹4192.58 crores, an increase of ₹521.35 crores (55%) over the previous year’s revenue of ₹2693.97 crores. Profit after tax (PAT) increased by ₹857.45 crores (82%) to ₹1904.55 crores compared to ₹1047.10 crores in the previous year. The net profit margin (NPM) for FY23 is 45.43%, with a three-year average NPM of 33.73%.

conclusion

Concluding the article “Best mid-cap stocks with high net profit margin”, it is important to note that investing only in NPM is not enough. Detailed analysis of stocks is necessary to understand their nature and suitability for risk and return. Let me know what you think about this stock.

Written by Ashish Agarwal

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