'Tame Inflation, Avoid Recession' could possibly turn out to be one of the key themes for global financial markets in 2022. Fear of slowing growth has put enormous pressure on the markets. Brutal volatility continues to influence capital markets, which are exasperated by the threat that contractionary monetary policy by major central banks will position the global economy in the throes of a recession. Bears steadily continue to gain a stronger grip on Indian equity markets, majorly driven by concerns about the hurtful implications of a tighter monetary policy on the growth momentum, record inflation levels, mixed Q4 earnings season and weak global cues.
Stock picking is an uphill task. Especially in the current environment, where investors must be wary of businesses that are vulnerable to high levels of long-lasting inflation, supply chain disruptions, rising interest rates and incessant geopolitical crisis. A smart strategy for investors is to consider companies with robust earnings' potential that hold up better than others when the times get tough. These are companies that generate plentiful profits on a regular basis. A neat trick to identify such businesses is to scrutinize net profits or bottom line. To gauge the extent of profits, net profit margin is the ideal metric.
Net profit margin is one of the key tools for determining the financial health of a company. Net profit margin ratio is calculated by dividing net profit by sales revenue. The metric demonstrates a company's ability to convert sales into profits and also furnishes an insight into how well a company is run. Higher the net profit margin, the better is the financial health of a company as it implies larger profits relative to revenue. Net profit margin also, to a certain extent, determines a company's ability to pay dividends to its shareholders.
Pros and Cons of Profit Margin Ratio
هذه القصة مأخوذة من طبعة May 23, 2022 من Dalal Street Investment Journal.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة May 23, 2022 من Dalal Street Investment Journal.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
All That Shines is Gold & Silver
Precious metals gold and silver hold a special place when it comes to the investment journey of Indians. They help diversify investment risks and provide a hedge against market volatility, making them an essential component of a well-rounded investment strategy. Vaishnavi Chauhan explores the impact of precious metals on your portfolio.
All You Wanted To Know About SIP
Is rupee cost averaging effective across all market phases, including uptrends, consolidations and downtrends? You probably might not have observed its performance in each phase or may have exited investments upon seeing negative returns. Rakesh Deshmukh takes a closer look at the scenario
When Is The Right Time To Sell Mutual Funds?
Imagine this scenario: You have diligently crafted your mutual fund portfolio, aligning each investment with your financial objectives and risk tolerance. All seems well until one day the market takes a steep dive, injecting uncertainty into your investment journey.
Middle East Tension Disrupt Global Equities
In the past fortnight, global stock markets experienced a rollercoaster ride, due to continued inflation concerns and escalating tensions in the Middle East. This confluence of events triggered a flight to safety, pushing investors towards safety assets
Gold and Oil Stay Solid Amid Escalating Geopolitical Issue
A boom in select commodities has threatened the central banks' inflation fight and interest rate cuts and now the gloves are coming off for them as they try to tame inflation
India - A Cure For Pharma Outsourcing Woes?
Eroom's Law, the grim corollary to Moore's Law, paints a concerning picture for the pharmaceutical industry.
Infrastructure Sector Is It Reaching For The Skies?
With the upcoming Lok Sabha elections looming, many of us may be feeling the urge to invest in infrastructure stocks, hoping for a favourable impact on investments if a strong political mandate ensues. Mandar Wagh delves into the government's emphasis on infrastructural development, future growth triggers and the critical factor of fundamentals that must be taken into consideration before investing
STABILITY ROCKED BY COMPETITION
While the company’s product portfolio and availability through various retail channels is undoubtedly impressive, the increasing competition posed by start-ups in the organised sector and the tendency of young consumers to try out various brands instead of displaying single brand loyalty is an issue of concern when it comes to future growth prospects
Launches A Wide Range Of Air-Conditioners
A leading name in the consumer electronics industry known for its innovative and cutting-edge technology, Cellecor Gadgets Limited is now stepping into the domain of air-conditioners, all set to make them available across India starting this month
Domestic Markets Spin Into A Higher Orbit
The domestic market experienced a period of volatile trading sessions over the last two weeks, predominantly characterised by upward momentum. According to data released by the Ministry of Commerce and Industry, the index of eight core industries for February 2024 showed a growth of 6.7 per cent, an increase from 4.1 per cent in January 2024.