Two red flags
- Management sounds way to optimistic about future. Could be too much of false confidence. Their experience in manufacturing is just 2 years – not enough learning cycle for even the manufacturing aspect of business.
- Company has not been able to convert profit into cash. May be, they are simply doing stock transfer and terming it Sales. Blowing WC is across the year, not just end of year which is a major concern. Likely, headed for a debt trap.
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