Ever noticed how half the analysts on an earnings call update their models when the CFO mentions "normalized working capital" while the rest just blindly write it down? That’s the difference between reading a spreadsheet and actually understanding a business.

A good business isn't automatically a good stock. Here are a few things to look out for:

• PAT can lie but Free Cash Flow doesn't. Watch what actually consumes the cash instead of just looking at the headline profit.

• ROCE is the real truth teller. A company earning 35% ROCE compounds wealth, while one earning 9% with debt slowly destroys it.

• Gross margins reveal pricing power. If margins hold during a demand downturn, you've found structural power.

(Quick disclaimer: I am not SEBI registered, so please do not take this as investment advice! This is purely for educational purposes.)

I've broken down the mental models serious fund managers use to read companies in my latest piece, bridging the gap between fundamental and technical analysis. Check out the link in the comments or tune into the podcast version!

https://open.substack.com/pub/spicapitalresearch/p/the-gap-between-a-good-business-and

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