01
Growth & Efficiency
Tip: EPS growth vs revenue growth reveals margin compression early. FCF/Net Income below 50% for two consecutive quarters is a red flag for earnings quality.
Revenue Growth YoY %
Year-over-year revenue growth. Below 8% signals slowing demand momentum.
EPS Growth YoY % NEW
Earnings per share growth. If EPS grows slower than revenue, margins are eroding. Negative EPS growth is a strong exit signal.
ROCE %
Return on Capital Employed. Below 15% means the business is destroying value relative to cost of capital.
Op. Margin Change YoY (pp)
Change in operating margin vs last year in percentage points. Enter negative if it fell (e.g. –4), positive if it improved (e.g. +2). Only a decline beyond –3pp adds to the exit score.
FCF / Net Income % NEW
Free Cash Flow ÷ Net Income × 100. Below 50% for 2+ quarters suggests earnings may not be backed by real cash — a manipulation risk flag.
02
Valuation Discipline
Select the company's sector to load the correct valuation metrics and benchmarks
Technology & Growth
SaaS / Software
Internet / Platform
Hardware / Semis
IT Services / Consulting
Financials
Banks / PSU Banks
NBFC / Insurance
AMC / Broking
Consumer & Retail
FMCG / Staples
Retail / QSR
Consumer Durables
Industrial & Cyclical
Capital Goods / Defence
Auto / Auto Ancillary
Infrastructure / EPC
Metals / Mining
Other
Pharma / Healthcare
Real Estate / REITs
Oil & Gas / Energy
General / Other
Select a sector above to load the correct valuation inputs.
03
Balance Sheet & Governance
Key addition: Auditor resignations and qualified opinions are historically the strongest early fraud indicators — weighted highest in this section.
Debt / Equity Ratio
Total debt ÷ shareholders' equity. For non-financial companies, above 0.5 is a risk flag. Above 1.0 is dangerous.
Promoter Pledge %
Percentage of promoter shares pledged as collateral. Above 20% is a serious governance concern — forced selling risk.
Promoter Stake Δ 1Y %
Change in promoter holding over the last year. Enter negative value if they reduced stake (e.g. -2.5). Drop above 2% is a warning.
Auditor / Accounting Flags NEW
Has the auditor resigned, issued a qualified/adverse opinion, or have there been financial restatements? Historically the strongest early warning of fraud.
04
Market Warning Signals
Drop from 52-Week High %
How far below the 52-week high is the stock trading? Enter positive number. Significant drops alongside slowing revenue = market detecting trouble early.
Revenue Trend
Price signals only score if revenue is also slowing. A price drop with strong revenue growth may be an opportunity, not a warning.
05
Moat Integrity CORE
Now mandatory: Structural advantage loss often shows up here 2–4 quarters before it appears in earnings. Examples: AI disruption, new regulation, pricing wars, or market share loss above 3%.
Competitive Position Assessment
06
Value Cushion & Momentum
These factors reduce the exit signal — they provide downside protection or positive momentum. Check all that apply.
⏱ 2-Quarter Confirmation Rule
A signal must persist for 2 consecutive quarters before taking action. One recovery quarter resets the clock.
- Bypass immediately for: Fraud, auditor resignation, governance collapse, or a sudden massive debt spike