Interactive Session with Mr. Saurabh Mukherjea

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Yes sir absolutely perfect.. Properly followed sir.. Jay hind.. Jay bharat.. saath ek lakshya bhed .

gouravmisra
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Beware of excessive enthusiasm. Nestlé’s cash from operations between 1996-2016 (20 years) was 16% which came down to mere 11% between 2002-2022 (20 years) and to 5% in last 10 years (2012-2022). The only way free cash flow can grow faster than cash from operation is if Nestlé gives more dividend and history is the proof. Nestlé’s average dividend pay-out to cash from operations ratio was 46% between 1997-2016 (20 years) which increased to 55% in last 20 years and 60% in last 10 years. And because growth requires reinvestment, higher dividend pay-out will result in lower future growth. Hence, beware when fund managers show rosy pictures of 20-25% growth.

Ven