We found that over the past 10 years, large Indian corporates have allocated far more of their operating cash flow to acquisitions and capex than their peers in other large economies. In fact, over the past decade, BSE100 companies have actually spent more cash on acquisitions and capex than they have generated.
As a result, large Indian corporates have returned less cash to their shareholders than their peers in other large economies. This ultra-aggressive spending and reluctance to return cash to shareholders is extraordinary in a country where the cost of capital is the highest outside sub-Saharan Africa.-from ET
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