FY23 Wrap: 3 Nifty 50 Cos. with HIGHEST Profit Margins!

  • Stock Market Analysis
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The FY23 earnings season has almost come to an end with many companies clocking much-anticipated growth. In case you are wondering which blue chips have been able to record the highest profit margins, here’s a list of the top 3 from the benchmark Nifty 50 index.

Power Grid Corporation of India Limited

Power Grid Corporation of India Ltd (NS: PGRD ) is a government-owned power transmission company, with a market capitalization of INR 1,63,574 crores. The company posted a record revenue of INR 46,854.21 crores and a net profit of INR 15,417.12 crores, translating into a profit margin of 32.9%, the highest among all index constituents.

FIIs have also increased their stake in the company, from 29.3% in March last year to 32.29% in the quarter ended March 2023. Although the stock has traded flat for the last 12 months, its attractive dividend yield of 6.29% is what inclines investors toward this slow-moving counter.

Bajaj Finance Limited

Bajaj Finance Ltd (NS: BJFN ) is a well-known consumer finance company, with a market capitalization of INR 4,18,987 crores. The interest rate hike that had been going on for over a year has helped many financial institutions beef up their net interest margins, and Bajaj Finance is no different. The company clocked a revenue of INR 41,407.36 crores in FY23, over which, it was able to maintain a profit margin of 27.29%, leading to a net income of INR 11,507.69 crores.

The stock has also slightly outperformed the benchmark Nifty 50 index in the last 12 months with its 13.4% rally, compared to 11.6% of the latter. On the daily chart, the stock has a support of around INR 5,500 which could be eyed by long-term investors as a good accumulation opportunity.

ITC Limited

The third Nifty 50 company with the highest profit margin in FY23 is ITC Ltd (NS: ITC ), an FMCG giant with a market capitalization of INR 5,58,142 crores. The stock is the best Nifty 50 performer with a 12-month return of 66.9% and rallied to an all-time high yesterday. The company managed to garner a revenue of INR 72,990.21 crores in FY23, with a profit of INR 19,142.62 crores.

This translated into a hefty profit margin of INR 26.23%. FIIs are also rapidly increasing their stake in the company, ramping it up from 11.99% in March 2022 to 43.32% in March 2023. The icing on the cake is, the stock is still trading at a decent dividend yield of 2.8%, not bad for the 6th largest NSE-listed company.

Read More: Multibagger Midcap Switching Gears for HIGH Upside!

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