Mega Thread on 50 Questions to ask any management during con-calls or company visits:
(Would appreciate a retweet if you like this thread as it contains a compilation of all the questions I've ever asked during my interaction with 150+ small/mid-cap companies managements)
(Would appreciate a retweet if you like this thread as it contains a compilation of all the questions I've ever asked during my interaction with 150+ small/mid-cap companies managements)
1. If there is one company that you truly respect in your field? Which company would be it and
Why?
2. How do your products/technologies differ from competitors' products?
3. What are some things that differentiate you as a company from your competitors?
Why?
2. How do your products/technologies differ from competitors' products?
3. What are some things that differentiate you as a company from your competitors?
4. Who are your top 5 competitors?
5. Can you shed some light on the industry growth prospects and where it is heading?
6. What are the entry barriers in the business? How strong is the customer stickiness?
7. What do you perceive to be the greatest weaknesses going ahead?
5. Can you shed some light on the industry growth prospects and where it is heading?
6. What are the entry barriers in the business? How strong is the customer stickiness?
7. What do you perceive to be the greatest weaknesses going ahead?
8. How are we going to address them?
9. How strong are the relationship with our client? What are the switching costs?
10. Has the market accepted the new product? How much has it contributed to the sales and any scope of margin expansion? (in case new product/service launched)
9. How strong are the relationship with our client? What are the switching costs?
10. Has the market accepted the new product? How much has it contributed to the sales and any scope of margin expansion? (in case new product/service launched)
11. What is your approximate market share segment-wise?
12. How much is it likely to be 3-5 years from now?
13. Which is the lowest cost producer of our output in India and globally? How far are we in
catching up?
12. How much is it likely to be 3-5 years from now?
13. Which is the lowest cost producer of our output in India and globally? How far are we in
catching up?
14. Could you explain in brief your marketing strategy and how you are trying to position
yourself in the market?
15. Who are the top 5 customers of the company and approx. what % of sales are accounted for by
each one of them?
yourself in the market?
15. Who are the top 5 customers of the company and approx. what % of sales are accounted for by
each one of them?
16. What is the approximate contribution of foreign customers to the company's revenues? How
is it likely to change in the next 3-5 years?
17. What is the company's dividend distribution policy?
18. What is our current order book?
is it likely to change in the next 3-5 years?
17. What is the company's dividend distribution policy?
18. What is our current order book?
19. By when are we planning to complete these orders?
20. What is our sales target for the next 2/3 years?
21. Any plans of bettering up our Working Capital Cycle?
22. If Inventory days are high, what is the reason for it?
23. What is our present capacity utilization ratio?
20. What is our sales target for the next 2/3 years?
21. Any plans of bettering up our Working Capital Cycle?
22. If Inventory days are high, what is the reason for it?
23. What is our present capacity utilization ratio?
24. What will be the present replacement costs of our assets?
25. Any expansion plans? And how will you raise money for the same? (debt or internal
accruals?)
26. What is our raw material? Is our raw material linked to crude?
25. Any expansion plans? And how will you raise money for the same? (debt or internal
accruals?)
26. What is our raw material? Is our raw material linked to crude?
27. What is the overall raw material/ input price scenario?
28. Do we have plans on retiring debt?
29. What percentage of revenue is domestic/exports?
30. Which countries mainly we export to? Percentage?
28. Do we have plans on retiring debt?
29. What percentage of revenue is domestic/exports?
30. Which countries mainly we export to? Percentage?
31. What is the management remuneration policy? Are we following the 11% managerial
remuneration mandate?
32. Any plans of promoters increasing stake further?
33. Have we got any plans to dilute equity in near future?
34. What is the total manpower of the company?
remuneration mandate?
32. Any plans of promoters increasing stake further?
33. Have we got any plans to dilute equity in near future?
34. What is the total manpower of the company?
35. Going forward, the ability of the company to increase the scale of operations coupled with
improved profitability margins and efficient working capital management would remain the key,
my question is what are we doing to address the rating-sensitive profile of our company?
improved profitability margins and efficient working capital management would remain the key,
my question is what are we doing to address the rating-sensitive profile of our company?
36. Barring the promoters who are our major shareholders.
37. Does any of our client or input supplier have any major position in the company? Can we have an interaction with them?
37. Does any of our client or input supplier have any major position in the company? Can we have an interaction with them?
38. How passionate are you about running the business?
39. What if our company's stock price never moves up in the coming 5 years? How concerned are
you as a shareholder to see a higher market cap?
39. What if our company's stock price never moves up in the coming 5 years? How concerned are
you as a shareholder to see a higher market cap?
40. Please share more info that is not in the public domain about the industry.
41. God forbid, if something happens to the promoters. What will happen to the company?
42. What is the deterrent to our company? Any major threats going forward?
41. God forbid, if something happens to the promoters. What will happen to the company?
42. What is the deterrent to our company? Any major threats going forward?
43. What is the sectorial growth rate?
44. The growth rate in the last 10 years? What’s the expected growth rate in the coming 5 yrs.?
45. What was or is or will be the turning point of the company?
46. As an organization, where do we see ourselves in 2025? What is the vision?
44. The growth rate in the last 10 years? What’s the expected growth rate in the coming 5 yrs.?
45. What was or is or will be the turning point of the company?
46. As an organization, where do we see ourselves in 2025? What is the vision?
47. Can we see the plant any day and talk to the employees?
48. What are we doing on that part to make employees happy?
48. What are we doing on that part to make employees happy?
49. Do you have any other business interests?
50. Are you planning to recruit any experienced industry professionals in the future?
PS: Hope these help you to gain deeper insights into the company.
Pay attention to the tone/body language as it reveals a lot about the management.
50. Are you planning to recruit any experienced industry professionals in the future?
PS: Hope these help you to gain deeper insights into the company.
Pay attention to the tone/body language as it reveals a lot about the management.
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