One More thing I have noticed is past 10 years’ profit is not matching with the operating cash flow from operations.
From many interviews and with the blogs I have read that it should not vary more than 20% but in the case of lux cumulative 10 Years PAT/CFOL is varying up to 47%.
The company is generating High ROCE. ROE and Profit but there is most of the time negative cash flow.
I do not have much accounting skill to go and catch the problem but company with insider trade case. Past records of many transaction with subsidiaries and with promoters. Have negative cash flow.
Cash flow is fact, profit is an opinion
topline is vanity and profit is sanity but cash is reality