For investors worrying about the right opportunity to enter the markets, it could perhaps be the best time now. Benchmark indices have nosedived in the last seven straight sessions owing to a string of negative developments – the economy at a three-year low, FIIs pulling out of Indian securities, and high CPI-based inflation. This has resulted in several stocks correcting to a level where they are available at a reasonable price.
However, given the buzz about the fiscal stimulus which could increase our fiscal deficit, investors are even more anxious the stocks could see a further correction.
So, should they wait or take the plunge?
Over the last ten years, even when there have been headwinds, investors have been rewarded with their bets returning higher margins.
Moneycontrol analysed the financial data of such companies over the last decade, filtering them by their profit margin. We narrowed down our search further to those companies which posted a PAT margin of over 25 percent consistently in the last ten fiscal years.
Only 19 companies from the entire BSE universe met the criteria.
To drill down further we also considered standard performance tracker – price returns over 1 year, 2, 3, 5, 7 and 10 years. Interestingly, there are only four stocks which gave at least 25 percent price returns across these time frames and have also outperformed Sensex.
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