What if ROE continues to increase with time on operating leverage ? Most multibaggrrs come from rising ROE, increasing sales and profits give only compounding. Fact is fact but what one derives is different for different people. This is the market.
ROE 10 percent, next year sales growth 20 percent, ROE 11 percent, profit growth will be 30 percent. I think this way. How much ROE is inbuilt in business, Vaidyanathan has said many times i.e 20 percent. This shows the operating leverage tenure this company has to show in its results in future.
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