Feeling low about low margins?

At the outset, a business that earns a low operating (earnings before interest and tax or EBIT) margin is considered bad. Well, is that always correct? Going by this yardstick, you are eliminating retail (Avenue Supermarts, Trent), staffing (SIS, TeamLease), contract manufacturers (Dixon, Amber), logistics (Blue Dart Express, VRL Logistics) players from your screener, as they fit in the category of low-margin businesses. More importantly, you are depriving yourself of the opportunity to participate in some of the best secular up-trending sectors in India. Interestingly, many of thes