Cash Heap Spurs Call For Buybacks And Dividends

(ROCE) for operating business surpasses returns from cash holdings, Tandon emphasized that distributing the surplus is a logical move. Not doing so, he warned, could drag down overall returns and the company's market valuation.

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ROCE is a financial metric that helps evaluate how much profit a company generates for every rupee of capital invested in its operations. Companies with a higher ROCE are generally valued higher.

Four firms—Honeywell Automation India, Bosch, ZF Commercial Vehicle Control System India, and Abbott India—could pay over ₹500 per share in incremental dividends, according to the report. Notably, these are subsidiaries of multinational corporations.