Forensic accounting and early red-flag radar across your portfolio (portfolio redflags)

[iamsaquib8]

What

Roadmap idea. Big portfolio losses rarely happen without prior warning signs. Fundamental red flags like poor cash conversion, sudden promoter share pledges, auditor resignations, or creeping accounts receivable almost always precede corporate blowups. A portfolio red-flag scanner can audit every held and watchlisted stock in one command.

Design

• stockwise portfolio redflags:
  • Scans all portfolio and watchlist holdings across published financial filings and exchange disclosures:
    1. Cash Conversion Failure: 3-year CFO / PAT < 0.7 (accounting profits without real cash flow) or consecutive years of negative free cash flow while reporting rising PAT.
    2. Receivables & Accrual Bloat (Beneish M-Score components): Days Sales Outstanding (DSO) or working capital days rising significantly faster than revenue.
    3. Governance & Pledging Spikes: Promoter shareholding declining QoQ, promoter pledges >15% or a sharp QoQ increase in pledged shares, or simultaneous exit by institutional investors (FII + DII).
    4. Debt & Coverage Stress: Interest Coverage Ratio (ICR) < 2x, rising short-term debt, or credit rating downgrades.
    5. Corporate Radar Flags: Recent auditor or CFO resignations, qualified audit opinions, delayed financial results, or exchange surveillance flags (NSE/BSE ASM / GSM).
    6. Mutual Fund Bleed: Regular plan TER commission drag, style drift, or sharp AUM bloat in small-cap funds.
  • Sorts warnings by Portfolio Exposure × Severity: an issue in a 15% core holding surfaces before a minor flag in a 1% tracking position.

Done when

• Scans local portfolio holdings against fundamental and corporate filing indicators.
• Weights alerts by position size and severity.
• Strictly factual data points from exchange filings; no speculative accusations or tips per #260.
• Outputs --json and registers as an MCP tool for AI assistants.

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Upvote or comment below with the red flags you look for in company filings, or shares that caught you off guard in the past. Ideas with community demand get scheduled on the roadmap.