7 stocks with strong EBITDA margins turned multibaggers in just 3 months
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over 1 year ago
The EBITDA margin, a financial measure, assesses a company's profitability by comparing its earnings before interest, taxes, depreciation, and amortization (EBITDA) to its total revenue. This measure indicates the company's ability to generate profits from its core business activitiesA healthy EBITDA margin signifies positive aspects such as profitability, financial stability, and investment opportunities. ETMarkets identified seven stocks that consistently maintained an EBITDA margin above 20% in each of the last four quarters of FY23. These stocks experienced remarkable share price growth of over 100% in FY24 within a short three-month period. We've considered only stocks with a market cap over Rs 500 crore.However, it is important to recognize that a high EBITDA margin alone does not guarantee long-term success or sustainability. It is crucial to consider additional factors such as cash flow, debt levels, market conditions, competitive landscape, and the company's overall strategy and execution when evaluating a company's prospects.
Economic Times