Important checklist we go through when we buy a stock:

• What is the Company’s return on capital employed (ROCE)?

• Does the Company generate free cash flow?

• At what rate is the topline and bottom line of the Company growing?

• What is the Company’s debt/equity and interest coverage ratio?

• Does the Company have any competitive advantage? If yes, what is the source of competitive advantage?

• Does management of the Company fulfill its past promises?

• What is the interest rate and credit rating on borrowing?

• What is operating cash flow to Net profit ratio?

• What are the Company’s margins?

• Has the number of shares outstanding increase substantially over the past few years?

• How has Company’s business evolved over time?

• What is the percentage of promoter holding? Have the promoters pledged any shares?

• Is the board filled with management family members or former managers?

• Are managers clear and consistent in their communications and actions with stakeholders?

• Have the Company’s past acquisitions been successful?

• What are the Company’s contingent liabilities?

• Are there significant related party transactions?

• What is the Company’s dividend payout policy?

• Are there any recurring one-time charges?

• Are there any investments in marketable security?

• What is the Company’s effective tax rate?

• What are the inputs to the Company’s goods and services?

• What are the primary markets to which the Company sells and is the customer base concentrated or diversified?

• Does the Company report results much sooner/later than competitors?

• Does the Company have ability to raise prices without losing customers?

• To what degree is the Company’s business cyclical or recession resistant?

• Does the Company have high or low capital expenditure requirements?

• What is the days sales outstanding?

• What is the days sales inventory?

• How long is the cash conversion cycle?

• Is there a catalyst for the stock over the investment time horizon?

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