My red flags stem from the debt servicing component.
Many companies have survived this P&L cyclicality, but the companies which are not able to get through, or those who have perished, have all perished because of the balance sheet challenges.
The red flags, whatever they come in on the financial side, it all boils down to the balance sheet and the cash flow conversions.
One, on the P&L side, the company needs to be relevant over a long period of time, the runway of growth should be very high, and there shouldn't be near-term or imminent terminal value risk.
Very short-term growth might not help if the company doesn't have visibility after 5 or 6 years; then, there is no point in investing in that company.
On top of that, the promoter-led capital allocation decisions and the quality of the promoter do make a difference in terms of selecting a stock. So, the red flags come in on a softer aspect, on the capital allocation and the promoter pedigree side.