India has a significant market for a variety of products, and many international companies strive to sell their products and strive for greater market share. In addition, the entire stock market cap of India is over US$ 3 trillion, and this is only from domestic companies. 

Exchanges and regulators encourage international companies to list in order to boost the flow of capital and it will predominantly fuel the local Indian companies since this will result in a partnership that is mutually advantageous. 

Here are two mid-cap American companies with above 20 percent margins

Colgate Palmolive (India) Ltd:

Colgate-Palmolive (India) (CPIL) is India’s largest oral care brand with a market share of more than 50% in the toothpaste category. Further, Colgate manufactures toothpaste, toothpowder, and personal care products. Its primary brands include Colgate Dental Cream, Colgate Total, and others.

The company belongs to the mid-cap category with a market capitalization of Rs 45,133 Crores, Colgate Palmolive shares were trading at Rs 1,659.35 apiece on Friday, up 0.87 percent as compared to the previous closing levels of Rs 1,648.

As per company financials, operating revenues significantly increased from Rs 5,099 crores during FY 21-22 to Rs 5,226 crores in FY 22-23. Similarly, Net Profit has increased by 3 percent, from Rs 1,078 crores to Rs 1,047 crores.

For the previous three fiscal years, the company has been able to maintain its margins above 20 percent, for instance for FY23, The net profit margin is 20.03 and the operating margin is 27.38.

Similarly, profitability ratios depict the company’s return on equity (ROE) at 61 percent and a 79.28 percent return on capital employed (ROE). 

Pfizer Ltd:

Pfizer is one of the world’s leading pharmaceutical companies with more than 150 products and it is the third-largest multinational pharmaceutical company in India. The company specialised in Vaccines, Hospitals, Internal Medicine, and Inflammation and Immunology.

Pfizer Ltd. shares were trading at Rs 3,856.15 a share on Friday, up 0.35 percent from the previous closing levels of Rs 3,844. The company belongs to the mid-cap category with a market capitalization of Rs 17,641 crores

For the previous five years, the company has been able to maintain strong margin growth above 30 percent, for instance for FY23, The net profit margin is 25.73 and the operating margin is 33.17.

Similarly, profitability ratios depict the company’s return on equity (ROE) at 19.45 percent and a 24.05 percent return on capital employed (ROE). 

Revenue decreased somewhat from Rs 2,610 crores in FY 21–22 to Rs 2,424 crores in FY 22–23, according to corporate financials. The Net Profit, on the other hand, went up from Rs. 612 crores to Rs 623 crores.

Written By Omkar C

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