The ratio indicates the ease with which a company can pay interest on the borrowings — higher the ratio, better it is. It is calculated by dividing the operating profit (earnings before interest and tax or EBIT) by interest outgo for a given period.
Largecaps look better as smallcaps price in strong growth: Franklin Templeton’s Arihant Jain
Largecap stocks offer a better risk-reward balance than mid- and small-caps as higher growth expectations are already priced into smaller companies, according to Arihant Jain