First of all where did you come up with this figure of 32% ROCE? Screener clearly shows ROCE for 2024 was 24%.
What you’re claiming is not possible mathematically, if the revenue growth of a company is much more than the return it generates on equity(ROE) than it has to keep infusing funds unless of course as you said it is sitting on Operating Leverage, then it’s Net Profit would increase significantly more and generate more ROE than revenue growth.
But in the case of Yatharth, as you claim that the company does not need any capital infusion, then why did they use raise capital 3 times in the last 4 years and used all that money to repay debt instead of further expansion? If they could really sustain the growth without capital infusion they wouldn’t dilute their equity.
They have raised capital 3 times in the last 4 years and they will have to keep doing it in the future or borrow debt unless the Operating Leverage kicks in.
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