Archive · 12 Aug 2026
Only 3 midcaps cleared this 10-year cash flow test
Making a profit and having real cash are not the same thing.
A company can report earnings while its money is stuck in unpaid bills or new factories.
So this article used a very tough checklist to find companies that truly make cash.
The checklist looked at ten years of cash, sales growth, profits, low debt and fair prices.
Out of many companies, only three passed.
IndiaMART is a big online marketplace that helps small businesses find each other.
Mastek is a technology company that helps other companies use computers and software.
Axtel builds the big machines used in food factories.
All three have been making real cash for years and pay part of it to their owners as dividends.
Still, even these strong companies have seen their share prices fall over the past year, so investing always carries risk.
A screen combining positive free cash flow over 10 years, sales growth above 5%, operating margins above 12%, RoCE above 15%, debt-to-equity below 0.3 and a free cash flow multiple under 20 times yielded only three qualifying stocks.
IndiaMART InterMESH, India's first and largest B2B digital marketplace, generated cumulative free cash flow of Rs 3,708 crore over 10 years, but paying suppliers declined by 1,850 to 2.18 lakh in Q1 FY27.
Mastek's 12-month order backlog rose 25% to Rs 2,935 crore as of June 30, 2026, driven by North American AI deals, with more than 40 AI-led deals closed during the quarter.
Axtel Industries, the only completely debt-free company among the three, is expanding its food processing equipment manufacturing capacity and building an R&D and testing centre for bulk-solids processing.
Despite passing the screen, all three stocks fell over the past year: IndiaMART down 29.6%, Mastek down 28.5% and Axtel Industries down 28.5%.
- Who
- Three Indian companies — IndiaMART InterMESH, Mastek and Axtel Industries — identified using data from Screener.in.
- What
- A strict 10-year free cash flow screen found only three midcap/smallcap companies that passed all criteria, including consistent cash generation, sales growth, healthy margins, low debt and sensible valuations.
- When
- Based on Q1 FY27 results and data as of June 30, 2026.
- Where
- The Indian stock market, where all three companies are listed.
- Why
- To find cash-rich, growing companies available at sensible prices, because reported profits do not always translate into real cash.
- Qualifying stocks
- 3 out of all screened: IndiaMART, Mastek, Axtel Industries
- Market cap range screened
- Rs 500 crore to Rs 11,000 crore
- IndiaMART 10-year cumulative free cash flow
- Rs 3,708 crore
- Mastek FY26 free cash flow
- Rs 515 crore (highest in more than a decade)
- Mastek order backlog
- Rs 2,935 crore, up 25% YoY
- Axtel Industries FY26 free cash flow
- Rs 63 crore
- FY26 dividend payout ratio
- IndiaMART 76%, Mastek 18.5%, Axtel 62%
- Free cash flow multiples
- IndiaMART 15.6x, Mastek 10.9x, Axtel 10.7x