Well said.
As I like to say, when a company is generating RoCE > CoC, Growth generates Value. When RoCE < CoC, Growth destroys Value.
The crazy part is, when the industry is growing through a lean period, not growing at all or growing very little is the best decision to take, value-accretion wise (There is always the option of paying out more Dividends or doing Buybacks - but these are subjective).
The best example of this I’ve seen in the Indian markets is Kotak Mahindra Bank. They intentionally reduce reinvestments/business expansion during lean periods and ramp up during the recovery phase.
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