Investing In High Profit Margin Businesses

Net profit margin is one of thekey tools for determining thefinancial health of a company.The metric demonstrates acompany’s ability to convertsales into profits and alsofurnishes an insight into how wella company is run. Armaan Madhani explains how investorsmust properly analyse thevarious facets of profitability

Tame Inflation, Avoid Recession’ could possiblyturn out to be one of the key themes for globalfinancial markets in 2022. Fear of slowinggrowth has put enormous pressure on themarkets. Brutal volatility continues toinfluence capital markets, which are exasperated by the threatthat contractionary monetary policy by major central bankswill position the global economy in the throes of a recession.Bears steadily continue to gain a stronger grip on Indian equitymarkets, majorly driven by concerns about the hurtfulimplications of a tighter monetary policy on the growthmomentum, record inflation levels, mixed Q4 earnings seasonand weak global cues.