In times of uncertainty, as many companies and sectors struggle to maintain profitable operations, there is another group of companies that have it a little easier. These are the highly profitable ones - companies like Sun Pharma that operated at EBITDA margins of 47 per cent in the last 12 months or Just Dial that earned 35 per cent.
In our search for India's most profitable companies, we did a little thinking and removed companies that are cyclical in nature or are pure commodity plays. So while companies like NMDC, MOIL and Cairn India are undoubtedly highly profitable, we give them a miss. There is little to be able to predict how, say, crude oil will move or how zinc prices will impact Hindustan Zinc's earnings next year.
After applying the above qualifier, the companies that come out on top are predominantly from the pharma sector, the technology space and FMCG. Continuity of earnings streams, coupled with the high profitability these companies operate at, helps them come out on top.
We look at some of the country's most profitable companies and how they are faring. We also look at the outlook for each of them and whether they are still a buy at current prices.
- Sun Pharmaceutical Industries
- Divi's Laboratories
- Ajanta Pharma
- Just Dial
- TV Today Network
- Bajaj Corp
- Tata Consultancy Services
Watch out this space for other stocks.