Mind Map Gallery Investment Opportunity
This mind map helps you to find investment opportunity and explore the truth of investment.Edited at 2020-10-10 07:16:39
what if no/less growth?
consumption change? disruption? substitution?
what if margin contraction and high leverage?
what if increasing competition?
no strong entry barriers?
what if disruption?
what if opposing regulations?
what if promoter mis-alignment?
Growth seeming robust
Market not pricing strong future developments
market underpricing durability of consistent growth
operating leverage not priced in-hence favourable upside-downside ratio
change in management?
Scale of opportunity?
Guidance and execution in sync?
Promoter search for any cases/frauds
Inter-related party transactions?
Capital allocation & rationale?
What is the story?margin expansion/revenue growth/product mix
Volume Growth? why & product mix
Realization increase? pricing power?
Raw material decrease? sustainable?
Gross margin? why?
Operating margin? why? Leverage?
IS-BS-CF in sync? link them
Sum of cash flows and net profits?
CFO to EBITDA?
Increase in assets and their components?
Is book value increasing?
Is fixed asset increasing?
Is working capital decreasing?
Is debt increasing?
Is equity being diluted?
cash flow and their components?
is CFO shown high and others CFI & CFF low?
CFO and its components?
Due diligence of financials-ARs & checklists
Tax as % paid?
Excise duty paid?
Sum of CFOs and Net profits?
Growth of revenue vs growth of working capital?
Intangibles on balance sheet?
Return Ratios/Cash Conversion/Leverage
Net margin? Turnover? Financial Leverage?
WC growth? WC turnover? Cash conversion cycle?
Fixed asset turnover?
Gross & Operating & Net margin?
Revenue & Profit growth?
Debt to Equity? Interest Coverage?
CFO to EBITDA? Stable?
Book value to inventory & recievables?
Tax as % paid?
Towards gross block?
Towards working capital?
Difficult to replicate?
Limited access to resources
First mover advantages?
Knowledge/skilled value creation?
Consumer bargaining power?
Supplier bargaining power?
Current status-market share/players etc.
competitive structure & reasons for the same?
Level of Organized/unorganized market share
Industry growth and profitability
Potential market size
Growth of market and current size?
Fixed asset and working capital intensiveness?
Capital allocation happening in the industry?
Any threat from current disruptions?