Identifying companies with robust financial performance is crucial for investors. One such important key financial metric is net profit margin which measures how much net income is generated as a percentage of revenues received.
IT stocks with net profit margin of more than 25% to add to your watchlist
Recently, many IT companies released their financial results (standalone and consolidated) for the third quarter and nine months ended 31st December 2023, through a recent filing with the stock exchanges. There are many more to come in the coming days.
As of the December 2023 quarter, we’ve got our eyes on three IT stocks that are not just growing but are boasting a net profit margin of over 20 percent.
Accelya Solutions India Ltd.
With a market cap of Rs. 2,741.51 crore and a net profit margin of 24.79 percent, Accelya Solutions was established in 1976. It offers software solutions to the global airline and travel industry.
The company’s revenue from operations grew by 10.8 percent on a year-on-year basis to Rs. 125 crore in the December 2023 quarter, accompanied by an increase in net profit from Rs. 31 crore in the December 2023 quarter.
The share price of Accelya Solutions moved up by 3.46 percent and closed at Rs. 1,836.45 from its previous close of Rs. 1,775.05. The company has given over 28.5 percent returns in the past six months and nearly 26.75 percent in the last one year. So far, it has yielded returns of more than 29.1 percent in 2024.
While the Promoters have decreased holdings from 72.81 percent in the September 2023 quarter to 72.78 percent in the December 2023 quarter, institutional investors have increased holdings from 16.31 percent to 16.37 percent in the same period.
Ksolves India Ltd
Incorporated in 2014, Ksolves India Ltd is engaged in software development, enterprise solutions, consulting & providing the best possible software solutions to companies.
The company’s share price fell by 0.58 percent to close at Rs. 1,278.45, compared to its previous closing price of Rs. 1,285.95. It has given over 24.3 percent returns in six months, whereas nearly 194.15 percent in the last one year. So far in 2024, it has given negative returns of around 4.46 percent.
In terms of financials, the company has a net profit margin of 31.44 percent for the December 2023 quarter, with a market cap of Rs. 1,515.5 crore and has seen consistent profit growth in the last eight quarters.
The revenue from operations increased by 38.81 percent from Rs. 25.9 crore in the September quarter to Rs. 28.15 crore in the December 2023 quarter, accompanied by an increase in net profit by 44.7 percent from Rs. 8.26 crore to Rs. 8.84 crore in the same period.
The Promoters’ holding remains unchanged at 58.94 percent in the December 2023 quarter. However, FII has decreased holdings from 1.88 percent in the September 2023 quarter to 1.75 percent in the December 2023 quarter.
Oracle Financial Services Software Ltd .
Oracle Financial Services’ share price gained above 35.6 percent as soon as it released the December 2023 quarter financial results. With a market cap of Rs. 57,133.75 crore, it closed at Rs. 6,602.35 compared to its previous closing price of Rs. 6,489.5.
It has given over 72.44 percent returns in the last six months and nearly 114.98 percent in the last one year, whereas, so far in 2024, the returns given were more than 52.7 percent.
While the company has a net profit margin of 40.62% in the December 2023 quarter, the revenue from operations grew by 25.83 percent from Rs. 1,444 crore in the September 2023 quarter to Rs. 1,824 crore in the December 2023 quarter, accompanied by an increase in the net profits from Rs. 417.4 crore to Rs. 740.8 crore.
As of December 2023, FIIs hold 6.89 percent of the shares, whereas DIIs hold 9.48 percent of the shares in the company, aggregating to 16.37 percent of the institutional holdings. The Promoters’ holdings have decreased from 72.81 percent to 72.78 percent in the December 2023 quarter.
Incorporated in 1989, Oracle Financial Services provides financial software, custom application development, consulting, IT infrastructure management, and outsourced business processing services to the financial services industry.
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