Profitability – Free Cash Flow
Healthy – Interest Coverage
Quality Development– ROCE, ROA, Margins
Valuation – EV/EBITDA, FCF Yield
Governance – Dividend, Buybacks
Cash Efficiency – Cash Conversion Cycle
Company Growth – Source of Funds for CAPEX Quality- ROIC (Return on Invested Capital)
Profitability- PAT Growth- Industry growth,balance sheet strength, sustainable growth rate(not much above roce)
Prefer companies with net cash or zero debt Business growth + Entrepreneur capability + expanding with internal accruals
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