Hi @Dhinakaran
Low margin does not necessarily mean it is concern always.
You have to compare the net profit in relation to capital employed. If a business has low capital employed and huge sales and even with low margin if it is earning more than 20% return on capital then it is good business.
You can compare net margin with previous year results of same company or with company which operates in same business segment.
If you see Maruti its NPM is less than 10% however it is generating more than 35% on capital employed.
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