ETMarkets Smart Talk | Earnings growth, ROCE and cash flows are key to identifying future wealth creators: Aditya Khemani
A quarterly results development with market-wide reach.
· Economic Times Markets
Aditya Khemani, Head – Equity at Invesco Mutual Fund, discusses how investors can identify potential long-term compounders, why earnings growth, ROCE and cash-flow generation must go hand in hand, and the financial red flags to watch out for in small- and midcap companies.
The analysis
Earnings versus expectations is what actually re-rates a stock; the surprise matters more than the absolute number.
Because the driver here is macro rather than company-specific, the read-through is to index-level positioning rather than to any single name — correlations tend to rise when the whole market faces the same signal.
Why it matters
- Fund flows and NAV moves show where domestic retail conviction is actually going, month after month.
Market context
- This is a market-wide development — its reach goes beyond any single stock.
- Sector exposure: Financial Services.
In this story
Related coverage
Q2 Results Live: Piramal Finance Net Profit Surges 65% ; Hindustan Zinc Net Profit Up 17%
Punjab & Sind Bank Q2 net profit surges 40% to ₹412 cr on improved income
Stocks in news: Reliance Industries, Eternal, IREDA, Yes Bank, Trent and Hindustan Zinc
Bajaj Finance Stock Falls Nearly 3% After Q2 Asset Quality Disappoints
Bajaj Finance shares fall 3% after Q2 results. What Jefferies, Nomura, other brokerages now expect?