Search+Investment IdeasSynopsisThe world is facing challenges and India is no different. The fact is that, in today’s world, managements that have lived through such crises and emerged with a stronger business deserve closer attention. Their performance is less likely to be the product of a favourable cycle. Which is why one should not go by initial impressions.There is one number that makes investors walk away from some very good businesses: Net profit margin. A company earns only Rs. 3, Rs. 4 or Rs. 5 on every Rs. 100 of sales, and the conclusion comes quickly. The business looks fragile. There appears to be little room for error. A small rise in cost, a weak customer, or one bad year could push profits sharply lower.That instinct is not entirely wrong. But it is incomplete. A low margin tells you ETMarkets.com 20 mins readAug 01, 2026, 11:14:00 PM ISTGift this Story to your friendsFONT SIZEAbcSmallAbcMediumAbcLargeSAVEPRINTCOMMENTContinue reading with one of these options:Limited AccessFreeLogin to get access to some exclusive stories & personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions & in-depth stock reportsSubscribe NowETUh-oh! This is an exclusive story available for selected readers only.Worry not. You’re just a step away.What’s Included withETPrime Membership