Other Screens
High Profit Margin (Sustained) is a Other Screens screen. It checks every NSE-listed stock against 2 conditions computed from nightly data, after excluding heavily pledged promoters and very small market caps. This page explains the rule, each figure and its source. It lists no stocks and is not advice.
A high profit margin is the most direct financial expression of pricing power. If a business earns 20 paise or more of net profit on every rupee of revenue, it means customers are willing to pay prices far above the cost of the product or service — and competitors have not yet eroded that gap. The crucial word in this screener is sustained: a single year of high margin can result from a commodity tailwind, a one-off asset sale, or a temporary cost reduction. Three consecutive years of high margin means the advantage is structural, not cyclical. This screener is deliberately distinct from ROCE or asset-lightness screens — a company can have a moderate balance sheet and still earn exceptional margins if its product commands a premium. Luxury goods, specialty chemicals, branded pharmaceuticals, and dominant B2B software platforms often show this profile. The dual requirement — net margin above 20% AND EBIT margin above 15% — ensures both operating efficiency and after-tax retention are genuine, filtering out businesses where high gross margins are consumed by heavy interest or tax burdens.
A stock must satisfy every condition below. Conditions are grouped under the pillar they test.
Pricing Power
Operating Efficiency
Consistency
Described in the philosophy; not a pass/fail condition in the current rule
Hard excludes
Ranked by PAT Margin (3Y Avg), highest first.
Net Profit Margin — Latest Year (%)
Net profit after tax (profitOrLossAttributableToOwners for FinEdge consolidated annual statements) divided by total revenue for the same fiscal year, expressed as a percentage.
The primary pass/fail gate. The stock must show net margin above 20% in the most recent fiscal year to qualify. A value below 20% disqualifies regardless of the 3-year average, because this screener requires current pricing power, not historical pricing power that may have been lost.
High is better
EBIT Margin — Latest Year (%)
EBIT for the most recent fiscal year (profitBeforeTax + financeCosts from FinEdge annual income statement) divided by total revenue, expressed as a percentage.
High is better
Net Profit Margin — 3-Year Average (%)
Simple average of net profit margin across the three most recent completed fiscal years.
High is better
Type hypothetical values to see which conditions they satisfy. These are not real stocks and nothing here is stored.
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How many stocks pass if this threshold were set differently. Counts only; no stocks are named.
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We have not measured this screen yet, so there is no record to explain.
This is a historical, statistical measurement produced by FINOME TECHNOLOGIES PVT LTD's research harness on past data. It is not a prediction, and past results do not indicate future results. The universe is today's Nifty 500 constituents, so the sample is affected by survivorship bias. It describes how a screen's selections behaved in the past and does not constitute investment advice or a recommendation.
Rule version 1.0.0