Smaller businesses listed on the stock exchanges are outdoing their larger peers when it comes to growth in the cash they are redirecting towards creation of long-term assets such as new factories.
The cash flow from investing activities, a key indicator for such activity, for listed small and medium enterprises (SMEs) is up 87 per cent from FY18, compared to a 63 per cent increase seen for BSE 200 companies.
The analysis is based on 183 listed companies from the SME segment and 152 firms from the BSE 200 index, excluding banks and finance companies, with data available over the last seven years.
The volatility for this metric has been higher for the SME segment.
Cash flow from investing activities fell to 49 per cent of FY18 levels in FY20.
The BSE 200 companies saw only a 4 per cent decline during the worst of the pandemic crunch.
But the rebound appears to have been sharper for the SME segment.
The SME segment has seen record fund-raising through equity markets.
この記事は Business Standard の October 25, 2024 版に掲載されています。
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