Sl No Question

1 What does the company do?

Who are its promoters? What

2
are their backgrounds?

What do they manufacture (in

3 case it is a manufacturing
company)?

How many plants do they

4 have and where are they
located?

Are they running the plant in

5
full capacity?

What kind of raw material is

6
required?

Who are the companys

7
clients or end users?
8 Who are their competitors?

Who are the major

9
shareholders of the company?

Do they plan to launch any

10
new products?

Do they plan to expand to

11
different countries?

What is the revenue mix?

12
Which product sells the most?

Do they operate under a

13 heavy regulatory
environment?

Who are their bankers,

14
auditors?
 How many employees do they
15 have? Does the company
have labor issues?

What are the entry barriers for

16 new participants to enter the
industry?

Is the company manufacturing

products that can be easily
17
replicated in a country with
cheap labor?

Does the company have too

18
many subsidiaries?

Sl No Variable

1 Net Profit Growth

2 EPS

3 Gross Profit Margin (GPM)

4 Debt Level

5 Inventory

6 Sales vs Receivables

7 Cash flow from operations

8 Return on Equity
 Rational behind the
question

To get a basic understanding

of the business

To know the people behind the

business. A sanity check to
eliminate criminal background,
intense political affiliation etc

To know their products better,

helps us get a sense of the
products demand supply
dynamics

To get a sense of their

geographic presence. Also at
times their plants could be
located in a prime location,
and the value of such location
could go off balance sheet,
making the company highly
undervalued

Gives us an idea on their

operational abilities, demand
for their products, and their
positioning for future demand

Helps us understand the

dependency of the company.
For example the raw material
could be regulated by Govt
(like Coal) or the raw material
needs to be imported either of
which needs further
investigation

By knowing the client base we

can get a sense of the sales
cycle and efforts required to
sell the companys products
Helps in knowing the
competitors. Too many
competing companies means
margin pressure. In such a
case the company has to do
something innovative. Margins
are higher if the company
operates in monopoly,
duopoly, or oligopoly market
structure

Besides the promoter and

promoter group, it helps to
know who else owns the
shares of the company. If a
highly successful investor
holds the shares in the
company then it could be a
good sign

Gives a sense on how

ambitious and innovative the
company is. While at the
same time a company
launching products outside
their domain raises some red
flags is the company losing
focus?

Same rational as above

Helps us understand which

segment (and therefore the
product) is contributing the
most to revenue. This in turns
helps us understand the
drivers for future revenue
growth

This is both good and bad

Good because it acts a natural
barrier from new competition
to enter the market, bad
because they are limited with
choices when it comes to
being innovative in the
industry

Good to know, and to rule out

the possibility of the
companies association with
scandalous agencies
Gives us a sense of how labor
intensive the companys
operations are. Also, if the
company requires a lot of
people with niche skill set then
this could be another red flag

Helps us understand how

easy or difficult it is for new
companies to enter the market
and eat away the margins

If yes, the company maybe

sitting on a time bomb think
about companies
manufacturing computer
hardware, mobile handsets,
garments etc

If yes, you need to question

why? Is it a way for the
company to siphon off funds?

What
Comment does it
signify

Revenue
growth
In line with the gross profit should be
growth in line with
the profit
growth

If a
company
is diluting
its equity
EPS should be consistent with
then it is
the Net Profits
not good
for its
sharehold
ers

Higher the
margin,
higher is
the
> 20%
evidence
of a
sustainabl
e moat
 High debt
means the
company
is
operating
Company should not be highly on a high
leveraged leverage.
Plus the
finance
cost eats
away the
earnings

A growing
inventory
along with
a growing
PAT
margin is
Applicable for manufacturing
a good
companies
sign.
Always
check the
inventory
number of
days

This
signifies
that the
company
is just
Sales backed by receivables
pushing
is not a great sign
its
products
to show
revenue
growth

If the
company
is not
generating
cash from
Has to be positive
operations
then it
indicates
operating
stress
 Higher the
ROE,
better it is
for the
investor,
however
>25%
make sure
you check
the debt
levels
along with
this
2142.545 861.22 2984.75 3354.65 2787.5
684.71 517.06 865.81 724.78 3303.66
1457.835 344.16 2118.94 2629.87 -516.16

1410.883
 140.36
1 2015 18% $165.62
2 2016 18% $195.44 1. be with fear on parents
3 2017 18% $230.62 2. office nainga will potu kudu
4 2018 18% $272.13 3. hear music from outside
5 2019 18% $321.11 4. be with gethu with others to
1 2020 10% $353.22 5. dhairiyam purusha latchana
2 2021 10% $388.54 6. you are interested in real es
3 2022 10% $427.40 7. DON'T TAKE ANYONE OR AN
4 2023 10% $470.14 8. why you have to see people
5 2024 10% $517.15 9. summa iru
1. be with fear on parents
2. office nainga will potu kudupanga like school
3. hear music from outside
4. be with gethu with others to get ascertained
5. dhairiyam purusha latchanam
6. you are interested in real estate
7. DON'T TAKE ANYONE OR ANYTHING SERIOUS
8. why you have to see people as problem be normal and talk normal
9. summa iru
 0 -1050000 -1050000
0
0
1 160302 138465.92381446
2 43373 32361.4070124669
3 47018 30302.3319750628
4 50730 28241.0428104923
5 380512 182973.498077861
6 23953 9949.0981373032
7 27876 10001.3407196225
8 1991746 617256.521844027
NPV -448.8356087046
-448.8356087047
IRR 15.76%
15.77%
 Q

2371.32 2376.36 2221.42 1947.06 2174.55 2265.65

ebitda 2371.32 2376.36 2221.42 1947.06 2174.55 2265.65

margin 100 100 100 100 100 100 #DIV/0!

PAT
MARGIN #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

0 0 0 0 0 0 #DIV/0!

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

2371.32 2376.36 2221.42 1947.06 2174.55 2265.65 0

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
1.680845 1.670012 1.561126 1.298161 1.449835 #DIV/0! #DIV/0!
1410.79 1422.96 1499.86
 A

12195.14 10,418.19 10321.06 9102.23 7159.47 REVENUE FROM OPERATIONS

TOTAL EXPENSE MINUS FINANCE COST AND D&A
12195.14 10418.19 10321.06 9102.23 7159.47 14.24218
100 100 100 100 100

TOTAL INCOME

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

ROE
0 0 0 0 0 NET PROFIT MARGIN
TOTAL ASSETS
SHAREHOLDER EQUITY

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! ASSET TURNOVER

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! FINANCIAL LEVERAGE

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! ROE DUPONT

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! ROE

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! ROA

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! ROCE

PBIT
CE
expense minus finance cost
Interest expense
12195.14 10418.19 10321.06 9102.23 7159.47 EBIT for coverage ratio
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! coverage ratio

TOTAL DEBT
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! DEBT/EQUITY
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! DEBT/ASSET
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! FINANCIAL LEVERAGE RATIO (EQUITY SUPPORTS HOW MUCH A
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! FIXED ASSET TURNOVER
FIXED ASSETS
CURRENT ASSETS
CURRENT LIABILITIES
 0 0 0 0 0 0 WORKING CAPITAL
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! WORKING CAPITAL TURNOVER
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! TOTAL ASSET TURNOVER RATIO
COST OF GOODS SOLD
INVENTORY
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! INVENTORY TURNOVER RATIO
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! INVENTORY NUMBER OF DAYS
TRADE RECEIVABLE
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! ACCOUNT RECEIVABLE TURNOVER RATIO
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! DAYS SALES OUTSTANDING
CE COST AND D&A

QUITY SUPPORTS HOW MUCH ASSET)