With bad management, you shouldn’t believe anything that is posted on business performance. Dishonest promoters and book cooking often go hand in hand and no amount of research will protect you from downside risks. Look at what has happened to stock prices of Zee and Polycab.
One should have a very strict rule in this case. If you are not comfortable with bad Mangement then you should exit or avoid stock completely regardless of their quarterly earning performance. A stock may still double, triple of quadruple from your exit level but you should be willing to take it in your stride.
On the other hand if you are not bothered with quality of management and are willing to take a leap of faith with their reported numbers then probably have a target price for exit (and do exit when you meet your target). At the same time be extremely vigilant and ready to pull the trigger at first sign of trouble assuming you get a chance to do so.
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