Best Midcap Stocks with High Net Profit Margin: Mid-cap stocks are companies whose market cap ranges between Rs 16800 and Rs 48900 crores.
Best Midcap Stocks with High Net Profit Margin – Watchlist Gems?
A high net profit margin (NPM) reflects that a company can efficiently control its costs and sell its goods or services at a much higher price than its costs. They generally have an advantage over others in the sector.
A high NPM could be a starting point for further analysis to determine whether a company is a good investment option. In this article, we shall learn about the best midcap stocks with high net profit margins, their financials, and the company overview.
Best Midcap Stocks With High Net Profit Margin
Phoenix Mills Ltd.
Phoenix Mills Ltd. is a retail mall developer and operator and has created a position in the Indian real estate business, whether it is through mega retail malls, entertainment complexes, commercial spaces, or hospitality units.
Its operations cover most of the 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 0.64 million square meters of retail space spread across 9 malls in 6 gateway cities in India and has developed over 2.11 million square meters spread across retail, hospitality, commercial, and residential asset classes. Besides the nine operational malls, four malls are under development with approximately 0.45 million square meters of retail space.
The financials reported a 78 percent increase in revenue from operations to Rs 2638 Cr in FY23 from Rs 1483 Cr in FY22 & 7.5% on a 4-year CAGR basis. The PAT reported a 493% rise from Rs 268 Cr in FY22 to Rs 1477 Cr in FY23 and a 33.63% rise on a 4-year CAGR basis. The NPM reported for FY23 was 55.81%, a 234% rise from FY22. The 3-year average NPM stands at 25%.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP (Rs) | ₹ 2,297.05 | Market Cap (Cr.) | ₹ 47,239 |
| EPS(TTM) | 51.69 | Stock P/E | 40.76 |
| RoE | 10.46% | RoCE | 12.66% |
| Promoter Holdings | 47.28% | FII Holdings | 30.80% |
| Debt to Equity | 0.51 | Price to Book Value | 4.26 |
| Operating Margin | 57.60% | PAT Margin | 55.81% |
Nippon Life India Asset Management
Nippon India Mutual Fund was registered with the Securities & Exchange Board of India (SEBI) on June 30, 1995, as an asset management company (AMC). Nippon India Mutual Fund (NIMF) was earlier known as Reliance Mutual Fund. The name of the mutual fund was changed from Reliance Mutual Fund to Nippon India Mutual Fund effective September 28, 2019.
NIMF was established to launch different schemes under which units are issued to the public to contribute to the capital market and provide investors with opportunities to make investments. Its sponsor, Nippon Life Insurance Company Japan (NLI), holds 73.7% of its paid-up equity share capital as of March 31, 2023.
The company’s product lines include mutual funds, including active and passive schemes across equity, hybrid, debt, liquid, and commodity categories; managed accounts, including alternative investment funds (AIF); portfolio management services (PMS); pension funds; and offshore business and advisory mandates.
As of March 31, 2023, Nippon AMC caters to 1.35 crore unique investors (market share: 36%) with a presence in 270 locations and 1.96 crore folios. The total assets under management (AUM) stood at ₹ 3,62,981 crore, and the mutual fund AUM stood at ₹ 2,86,873 crore.
The financials reported a 3.3 percent increase in total income to Rs 1350 Cr in FY23 from Rs 1307 Cr in FY22 & decline of 3% on a 4-year CAGR basis. The PAT reported a 3% decline from Rs 723 Cr in FY22 to Rs 744 Cr in FY23 and a 10% rise on a 4-year CAGR basis. The NPM reported for FY23 was 53.56%, a 6% decline from FY22. The 3-year average NPM stands at 58%.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP (Rs) | ₹ 510.35 | Market Cap (Cr.) | ₹ 30,952 |
| EPS(TTM) | 14.14 | Stock P/E | 28.37 |
| RoE | 24.76% | RoCE | 31.33% |
| Promoter Holdings | 73.10% | FII Holdings | 5.54% |
| Debt to Equity | 0 | Price to Book Value | 7.03 |
| Operating Margin | 58.81% | PAT Margin | 53.56% |
Central Depository Services Ltd
In 1999, Central Depository Services Limited (“CDSL”) was established and became the first depository to cross 50 million active demat accounts in 2021. CDSL is a Market Infrastructure Institution (MII) acting as a facilitator for the holding of dematerialized securities and enabling their transactions.
They cater services to all market participants, including exchanges, clearing corporations, depository participants (DPs), issuers, registrars and share transfer agents (RTAs), and investors. They have a widespread presence across 98% of pin codes.
As of March 31, 2023, CDSL accounted for 73% of the market share with 8.3+ crore investor accounts. The company has 585 depository participants and 20k+ corporates (issuers). CDSL also paid the highest-ever dividend of Rs 16 per share.
As of September 30, 2023, the top 5 shareholders are 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%)
The financials reported a 2.5 percent increase in total income to Rs 620.9 Cr in FY23 from Rs 605.9 Cr in FY22 & 26% on a 4-year CAGR basis. The PAT reported an 11.5% decline from Rs 311.81 Cr in FY22 to Rs 275.96 Cr in FY23 and a 25% rise on a 4-year CAGR basis. The NPM reported for FY23 was 49.71%, a 12% decline from FY22. The 3-year average NPM stands at 55%. The fall in NPM was due to a rise in costs.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP (Rs) | ₹ 1,748 | Market Cap (Cr.) | ₹ 19,586 |
| EPS(TTM) | 30.64 | Stock P/E | 60.18 |
| RoE | 26.1% | RoCE | 34.25% |
| Promoter Holdings | 15.00% | FII Holdings | 18.16% |
| Debt to Equity | 0 | Price to Book Value | 13.78 |
| Operating Margin | 62.40% | PAT Margin | 49.71% |
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’s a public company with 55% shareholdings with GOI, 26.85% with GOHP, and the rest 18.15% with the general public. As of March 31, 2023, the current net worth is Rs 13821.97 crore. SJVN is engaged in the business of electricity generation.
Started with one project in one state, i.e., the 1500 MW Nathpa Jhakri Hydro Power Station in Himachal Pradesh, the company today has completed eight projects totaling 2091.5 MW of installed capacity, 86 km of 400KV transmission lines, and 4438 MW under construction.
SJVN is presently implementing or operating power projects in Himachal Pradesh, Uttarakhand, Bihar, Maharashtra, Uttar Pradesh, Punjab, Gujarat, Arunachal Pradesh, Rajasthan, Assam, Odisha, Mizoram, and Madhya Pradesh in India and our neighboring country, Nepal.
The revenue from operations of the company has touched ₹2938.35 crores, which is an increase of ₹521.35 crores (21.5%) compared to ₹2417.00 crores earned during the previous year. The profit after tax (PAT) increased by ₹369.5 crores (37%) to ₹1359.30 crores against ₹989.80 crores for the previous year. The net profit margin (NPM) for FY23 was 46.26%, and the 3-year average NPM is 51.26%.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP (Rs) | ₹ 117.4 | Market Cap (Cr.) | ₹ 36,995 |
| EPS(TTM) | 2.84 | Stock P/E | 26.86 |
| RoE | 7.09% | RoCE | 5.44% |
| Promoter Holdings | 81.85% | FII Holdings | 1.68% |
| Debt to Equity | 1.01 | Price to Book Value | 2.1 |
| Operating Margin | 77.06% | PAT Margin | 46.26% |
Oberoi Realty
Oberoi Realty was initially established as Kingston Properties Private Limited on May 8, 1998. They are a Mumbai-based real estate development company involved in residential, commercial, retail, social infrastructure, and hospitality. With four decades of experience and 43 projects at strategic locations across Mumbai, they have aggregated 9.34 million sq. ft. of space and have 32.80 million sq. ft. in construction as of March 2023.
The revenue from operations of the company has touched ₹4192.58 crores, which is an increase of ₹521.35 crores (55%) compared to ₹2693.97 crores earned during the previous year. The profit after tax (PAT) increased by ₹857.45 crores (82%) to ₹1904.55 crores against ₹1047.10 crores for the previous year. The net profit margin (NPM) for FY23 was 45.43%, and the 3-year average NPM is 33.73%.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP (Rs) | ₹ 1,295.2 | Market Cap (Cr.) | ₹ 54,680 |
| EPS(TTM) | 53.94 | Stock P/E | 22.97 |
| RoE | 15.27% | RoCE | 15.5% |
| Promoter Holdings | 67.71% | FII Holdings | 17.41% |
| Debt to Equity | 0.32 | Price to Book Value | 3.51 |
| Operating Margin | 50.37% | PAT Margin | 45.43% |
Conclusion
As we conclude the article “Best Midcap Stocks with High Net Profit Margin,” it is to be noted that investing solely based on NPM is not enough. Detailed analysis of stocks is required to understand the risk & return characteristics and suitability. Do let us know your thoughts about these stocks.
