But those cash rich companies like TCS or Titan will not just simply increase dividends. They are not PSU companies or for that matter Vedanta.
Dividend is a capital allocation decision and one of the qualities well-managed companies is their ability to allocate capital where it generates the best return. And also such decisions are approved by the board.
So if ROCE of Titan is say 20+ why would it lend money to a group company when cost of capital is 12%?
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