1. Risks
   1. what if no/less growth?
      1. consumption change? disruption? substitution?
   2. what if margin contraction and high leverage?
   3. what if increasing competition?
      1. no strong entry barriers?
   4. what if disruption?
   5. what if opposing regulations?
   6. what if promoter mis-alignment?
2. Peer Overview
   1. market share?-geography/product/overall
   2. strategies?
   3. margin profile?
   4. capital allocation?
   5. strengths/weaknesses?
   6. management?
   7. competitor
3. Valuations
   1. EV/EBITDA
   2. EV/CFO
   3. PE
   4. PB
4. Investment Rationale
   1. Growth seeming robust
   2. Market not pricing strong future developments
   3. market underpricing durability of consistent growth
   4. operating leverage not priced in-hence favourable upside-downside ratio
5. Hypothesis
   1. Growth story?
   2. Margin Expansion?
   3. Operating Leverage?
   4. change in management?
   5. changing trends?
   6. Scale of opportunity?
   7. Moat?
   8. Deeply undervalued?
6. Management
   1. Equity dilution
   2. Salaries
   3. Guidance and execution in sync?
   4. Promoter search for any cases/frauds
   5. Inter-related party transactions?
   6. ROE/ROCE?
   7. Cash Flows?
   8. Capital allocation & rationale?
7. Financials
   1. What is the story?margin expansion/revenue growth/product mix
      1. Revenue growth
         1. Volume Growth? why & product mix
         2. Realization increase? pricing power?
      2. Profitability Growth
         1. Operating Leverage?
         2. Raw material decrease? sustainable?
      3. Margin Expansion
         1. Gross margin? why?
         2. Operating margin? why? Leverage?
   2. IS-BS-CF in sync? link them
      1. Sum of cash flows and net profits?
      2. CFO to EBITDA?
      3. Increase in assets and their components?
         1. Is book value increasing?
         2. Is fixed asset increasing?
         3. Is working capital decreasing?
         4. Is debt increasing?
         5. Is equity being diluted?
      4. cash flow and their components?
         1. is CFO shown high and others CFI & CFF low?
         2. CFO and its components?
      5. Turnover ratios?
   3. Due diligence of financials-ARs & checklists
      1. Tax as % paid?
      2. Excise duty paid?
      3. Sum of CFOs and Net profits?
      4. Growth of revenue vs growth of working capital?
      5. Intangibles on balance sheet?
      6. Leverage?
      7. Equity dilution?
   4. Return Ratios/Cash Conversion/Leverage
      1. ROCE? ROE?
         1. Net margin? Turnover? Financial Leverage?
      2. Incremental ROCE?-Important
      3. WC growth? WC turnover? Cash conversion cycle?
      4. Fixed asset turnover?
      5. Gross & Operating & Net margin?
      6. Revenue & Profit growth?
      7. Debt to Equity? Interest Coverage?
      8. CFO to EBITDA? Stable?
      9. Book value to inventory & recievables?
      10. Tax as % paid?
   5. Capital Allocation
      1. Towards gross block?
      2. Towards working capital?
      3. Debt reduction?
      4. Building cash?
      5. Dividends?
      6. Acquisition?
8. Industry Analysis
   1. Porters Forces
      1. Entry Barriers?
         1. Brand visibility?
         2. Difficult to replicate?
         3. Limited access to resources
         4. Regulatory barriers-license/patents?
         5. First mover advantages?
         6. Knowledge/skilled value creation?
         7. Network effects?
      2. Competitive intensity?
      3. Substitution risk?
      4. Consumer bargaining power?
      5. Supplier bargaining power?
   2. Current status-market share/players etc.
      1. competitive structure & reasons for the same?
      2. Level of Organized/unorganized market share
      3. Differentiators
   3. Industry growth and profitability
      1. Potential market size
      2. Growth of market and current size?
      3. Profitability?
      4. Fixed asset and working capital intensiveness?
      5. Capital allocation happening in the industry?
      6. competitive structure
      7. Any threat from current disruptions?
9. 4Ps
   1. Product?
   2. Potential?
   3. Predictability?
   4. People?