1) Debt-to-equity climbing rapidly. Fine if it's funding real growth; scary if it's funding losses.
2) Operating profit up, but cash flow flat or negative. Accounting profit can be manufactured; cash flow can't.
3) Frequent equity dilution — the company keeps issuing new shares. Existing shareholders' slice keeps shrinking.
4) Frequent related-party transactions with the promoter's other businesses. Sometimes fine, often a red flag.
5) Auditor changes back-to-back, or qualified audit opinions. This is a serious signal — investigate before touching the stock.
6) Promoter pledging shares. If more than 30% of promoter holding is pledged, one bad quarter can trigger a sell-off cascade.