ETMarkets Smart Talk | Earnings growth, ROCE and cash flows are key to identifying future wealth creators: Aditya Khemani

Aditya Khemani, Head of Equity at Invesco Mutual Fund, emphasizes that earnings growth, return on capital employed (ROCE), and cash flows are crucial factors in identifying companies that can create long-term wealth. He stresses that these three elements must work together for a company to be considered a potential long-term compounder. This means that investors should not focus solely on one aspect, but rather look for a combination of strong earnings growth, efficient use of capital, and robust cash flow generation.

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Aditya Khemani emphasizes the importance of earnings growth, ROCE, and cash flows in identifying potential long-term compounders. This could lead to a more informed investment approach.

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