Q2FY22 earnings of India Inc say ‘No, inflation isn’t transient!’
Profit margins of consumer-goods companies, such as Asian Paints, Havells, Nestle, and HUL have come under pressure sequentially.
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Caution: High profit margins are not the sole indicator of a stock’s strength
Though Profit Margins serve as a critical indicator of the company’s performance, they are certainly not the only parameter you should look at to judge its financial strength. High Profit Margins can be reported through manipulative accounting and the underlying truth might be quite different.
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