These 6 stocks saw rise in profit margin for 4 quarters in a row. Worth a look?

NEW DELHI: JSW Energy, Tata Consumer Products and L&T Technology Services are among six top BSE500 stocks (excluding banking and financials), which saw improvement in profit after tax (PAT) margin over the last four successive quarters.

Data showed five out of these six stocks also outperformed the BSE Sensex in the last one year. Analyst estimates on five of these stocks suggest upsides of up to 58 per cent.

Data available with corporate database AceEquity suggests PAT margin for JSW Energy climbed to 35.91 per cent in March quarter from as low as 6.31 per cent in the year-ago quarter. Margin improved to 11.89 per cent in June 2021 quarter to 16.01 per cent in September and 16.83 per cent by the end of December quarter. The scrip has climbed 127 per cent in the last one year compared with a 5 per cent rise for the BSE Sensex. The average broker target on the stock has seen upward revisions and stands at Rs 811 today, as per Trendlyne, which suggests a potential 58 per cent upside.


For Tata Consumer Products, margin has climbed quarter-after-quarter from 4.39 per cent in the March quarter last year to 9.1 per cent for the quarter ended March 31. The scrip, which has otherwise seen in a strong rally in the recent years has been falling since September 2021 and its one-year return stands at 9.8 per cent. The average brokerage target, as per Trendlyne, stands at Rs 901 for this stock, which suggested a potential upside of 29 per cent.

In case of Gujarat Alkalies And Chemicals, PAT margin has climbed consistently from 5.2 per cent in the March quarter last year to 19.41 per cent for the quarter ended March 31. This scrip has climbed 85 per cent in the last one year. Trendlyne offered no brokerages target for the stock.

Three IT companies namely KPIT Technologies, Cyient and L&T Technology Services have also seen improvement in their profit margin for four successive quarters.

Shares of KPIT Technologies are up 95 per cent in the last one year and if we go by the average broker price target, as suggested by Trendlyne, the scrip has potential to see 50 per cent upside. Cyient's average target price of Rs 1,107 also suggests a 51 per cent upside over the prevailing levels. This scrip has fallen 11 per cent in the last one year.

In case of L&T Technology, Trendlyne's average brokerage target suggests 48 per cent potential upside. This scrip has risen 21 per cent in the last one year.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)