These are findings till date on Red Flags
As with the nature of the business, the ability of the management to manage high working capital requirements effectively will determine the course of growth. Till now they have been very efficient in managing it. High ROE offsets the high capital turns (1.5 -1.7X) and is the advantage offered by the nature of the business where production efficiency is good but capital efficiency is poor
• Working capital for MNCs sale requirement
• Low creditor days combined with higher discounts → Higher supplier loyalty
Further input from @rupaniamit on shareholding through unrelated firms