Top 5 cash generating companies of India | Highest free cash flow companies

If we broadly classify stocks, we end up with two major categories. The first is growth stocks. Typically, these are stocks to buy from companies with robust revenue and earnings growth. Most of these companies have high capital expenditures. As a result, growth stocks are generally not known for robust free cash flows (FCF).

On the other hand, there are companies with mature business and stable cash flows. Even with investments in innovation or sustainable growth, these companies deliver robust FCF.

In general, companies with strong cash flows have a healthy balance sheet. They typically offer attractive dividends and value creation through share repurchases. Additionally, companies with a healthy FCF are low-beta stocks.

For a diversified portfolio, it’s important to have a mix of growth stocks and shares from mature businesses. Growth stocks provide investors with significant upside potential, while companies with solid FCF offer more opportunities for steady income.

With that in mind, let’s discuss top 5 stocks with strong free cash flows.


Financial ratios explained: https://youtu.be/U_Hartjz3Ik


Recommended watch: