Cash flow growth is a critical metric that measures the increase in the amount of cash generated by a business’s operations from one period to another. A positive cash flow growth indicates that a company is generating more cash than it was previously, which can lead to several advantages like enhancing company’s ability to meet its financial obligations, such as paying off debts and investing in future growth initiatives. Additionally, robust cash flow growth can signal to investors and stakeholders that the company is effectively managing its resources and generating sustainable profits. Moreover, it offers flexibility and resilience during economic downturns, enabling the company to weather challenging market conditions.
Let’s delve into each market cap segment to explore these noteworthy stocks further.
Large Cap Stocks
| Name | Market Cap (Rs crore) | Cash from operations last year (Rs crore) | Cash from operations preceding year
(Rs crore) |
CF growth (Rs crore) | Return over 1year (%) |
| Reliance Industr | 19,80,554.52 | 1,58,788.00 | 1,15,032.00 | 43,756.00 | 29.13 |
| I O C L | 2,36,319.01 | 71,098.63 | 29,643.72 | 41,454.91 | 79.87 |
| I R F C | 2,30,659.14 | 7,914.10 | -28,583.83 | 36,497.93 | 423.48 |
| Tata Motors | 3,61,490.21 | 67,915.36 | 35,388.01 | 32,527.35 | 72.85 |
| H P C L | 74,566.05 | 23,851.87 | -3,466.31 | 27,318.18 | 90.88 |
In the large-cap segment, Reliance Industries led with a market cap of Rs 19,80,554.52 crore, demonstrating robust cash flow growth of Rs 43,756.00 crore. Indian Oil Corporation Limited (IOCL) followed closely, with a market cap of Rs 2,36,319.01 crore, showcasing significant cash flow growth of Rs 41,454.91 crore. Additionally, IRFC (Indian Railway Finance Corporation) exhibited noteworthy cash flow growth of Rs 36,497.93 crore, despite its smaller market cap of Rs 2,30,659.14 crore. Tata Motors and Hindustan Petroleum Corporation Limited (HPCL) also displayed substantial cash flow growth, affirming their financial resilience. These large-cap stocks’ impressive cash flow growth underscores their operational strength and financial stability, making them attractive options for investors seeking reliable returns in their portfolios.
| Name | Market Cap (Rs crore) | Cash from operations last year (Rs crore) | Cash from operations preceding year (Rs crore) | CF growth (Rs crore) | Return over 1year (%) |
| Redington | 16,917.52 | 1,079.40 | -3,233.52 | 4,312.92 | 15.79 |
| Paradeep Phosph. | 6,049.79 | 1,436.75 | -2,376.67 | 3,813.42 | 33.38 |
| Sterling & Wils. | 18,472.35 | 538.40 | -1,829.21 | 2,367.61 | 143.43 |
| Rain Industries | 5,610.31 | 3,063.49 | 1,035.85 | 2,027.64 | 4.37 |
| Nava | 9,634.72 | 3,173.52 | 1,223.44 | 1,950.08 | 106.23 |
In the mid-cap segment, companies like Redington, Paradeep Phosphates, Sterling & Wilson Solar, Rain Industries, and Nava showcased significant cash flow growth, reflecting their strong financial performance and potential for expansion. Redington’s improved operational efficiency and profitability, along with Paradeep Phosphates’ strategic initiatives, contributed to their notable cash flow growth. Sterling & Wilson Solar’s robust cash flow growth highlighted effective financial management, while Rain Industries and Nava demonstrated resilience and growth potential. These mid-cap stocks present compelling investment opportunities for investors seeking growth and stability in their portfolios.
| Name | Market Cap (Rs crore) | Cash from operations last year (Rs crore) | Cash from operations preceding year
(Rs crore) |
CF growth (Rs crore) | Return over 1year (%) |
| Diamond Power | 4,637.08 | 27.44 | -1,953.39 | 1,980.83 | 3,845.95 |
| Sindhu Trade | 3,632.78 | 684.96 | -107.98 | 792.94 | -4.20 |
| Jindal Poly Film | 2,510.67 | 132.93 | -565.53 | 698.46 | -25.41 |
| PTC India Fin | 2,500.38 | 2,562.99 | 1,887.28 | 675.71 | 105.82 |
| Crest Ventures | 1,095.32 | -7.36 | -679.59 | 672.23 | 109.34 |
In the small cap segment, Diamond Power Infrastructure Ltd showcases exceptional cash flow growth, reporting an increase of Rs 1,980.83 crore in cash from operations. Similarly, Sindhu Trade Links Ltd and Jindal Poly Films Ltd exhibit notable cash flow growth figures, reflecting diverse opportunities within the small cap segment.
In conclusion, the stocks that reported the highest cash flow growth across different market cap segments serve as strong indicators of financial health and market potential.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.
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