DMART has been a negative FCF co since it has been in existence. Walmart was negative FCF for atleast 2-3 decades since its inception. Does this imply these businesses are risky and bad?
How fast to expand is obviously very subjective. Promoter believes that there is an opportunity to grab and gain market share and at the same time maintain reasonably good RoEs of 18-20% then why not?
Had the return ratios would have been poor and declining and the company would still have been expanding then I would have been more concerned. Hope this helps.
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