Free Cash Flow (FCF) is not the ultimate thing. For me, it's almost a 'nothing thing'. Basically, for a fundamental investor who looks at parameters like P/E, RoE etc, he should probably give FCF a look, but not make any buy or sell decision based on FCF.
Companies like Glaxo Consumer, ITC and Pidilite might be FCF positive, but these are old companies which have had operations for a long time. On the other hand, companies in DTH, retail and Telecom space are relatively new companies, require lots of investments and hence trade at a higher P/E.
FCF positive stocks have already seen the best of its growth phase and is now cruising steadily. The FCF negative pack is in the middle of a growth curve. Most of them will eventually become Free Cash Flow positive.
Dish Tv should ideally be with the private equity players |
Yeah, only PE players can still smile when a company is showing a net loss equal to that of net sales. The stock market & its investors are not mature enough for a stock like Dish TV.