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Sectors in Focus

Major Corporate Developments This Week

1. Adani Green Energy – Commissioned a 3.37 GWh battery energy storage system at Khavda, Gujarat, and targets 50 GWh of storage capacity over the next five years.
2. Adani Power – Acquired a 24% stake in Jaiprakash Power Ventures for ₹2,994 crore, strengthening its thermal power portfolio.
3. AIA Engineering – Q4FY26 EBITDA rose 20% to ₹362 crore with revenue up 10% to ₹1,250 crore. New mining/grinding solutions under trial in Latin America could drive growth through FY30.
4. Anupam Rasayan – Acquiring up to 43.3% stake in Bliss GVS Pharma for ₹1,369 crore and guiding for 25% EBITDA margins post integration.
5. Ashok Leyland – Expanding overseas markets, accelerating EV battery capabilities through CALB partnership, setting up a battery pack plant, and won a 715-vehicle order from VRL Logistics. Added to BSE 100.
6. Astra Microwave Products – Targets tripling turnover over five years, with FY27 revenue guidance of ₹1,300–1,400 crore while transitioning toward an IP-led systems business.
7. Bajaj Finserv – Plans to invest ₹1,500–2,000 crore in AI startups over five years and launched Finserv Intelligence with IIT Bombay.
8. Balkrishna Industries – Diversifying into on-road tyres and carbon black to reduce dependence on global off-highway tyre demand.
9. Balu Forge – Secured its first aerospace order from US-based Alpha Aircraft Systems, marking entry into the global aerospace supply chain.
10. Cipla – Will commercialize MedTherapy's CAR-T blood cancer therapy in India upon regulatory approval.
11. CMS Infosystems – Seeking higher ATM cash management charges amid rising operating costs and geopolitical disruptions.
12. Crizac – Strong earnings supported by UK demand and AI-based student matching platform expansion into Australia and New Zealand.
13. Dabur – USFDA highlighted data integrity and manufacturing compliance issues at one of its facilities.
14. Eicher Motors – Launched the Royal Enfield Bullet 650, strengthening its premium motorcycle portfolio.
15. Garden Reach Shipbuilders (GRSE) – Laid keel for the fourth of 12 vessels being built for Germany's Carsten Rehder, expanding commercial shipbuilding exports.
16. GMR Airports – Reported a turnaround to profitability in FY26, plans to operationalize Bhogapuram Airport in Q2 FY27 and take over Nagpur Airport operations.
17. GSFC – Acquired a 47.73% stake in Canada's Karnalyte Resources project to secure long-term potash supplies for India.
18. HBL Engineering – Won a ₹1,714 crore Kavach V4.0 railway safety system order from Chittaranjan Locomotive Works.
19. Healthcare Global Enterprises (HCG) – Q4 profit increased nearly fivefold; plans to add 1,000 beds and invest ₹650 crore in expansion.
20. Himadri Speciality Chemical – Approved additional investment into Sicona Battery Technologies, strengthening exposure to advanced battery materials.
21. Hitachi Energy India – Investing ₹20 billion in a Gujarat transformer facility and targeting a major increase in data-centre power solutions market share.
22. Indian Metals & Ferro Alloys (IMFA) – Achieved record FY26 performance and is pursuing capacity expansion, acquisitions and renewable energy initiatives.
23. JK Tyre – Announced ₹4,900–4,980 crore capex plan to expand production capacity by 24% through FY30.
24. Jupiter Wagons – Signed a 10-year wheelset supply agreement with Europe's Tatravagonka and is expected to benefit from the upcoming ₹40,000 crore wagon tender.
25. KEC International – Secured ₹1,300 crore order and sees strong opportunities from India's ₹1.8 lakh crore transmission infrastructure pipeline.
26. Lloyds Metals & Energy – Entering the copper value chain with plans to produce 100,000 tonnes of copper products over five years.
27. Mazagon Dock Shipbuilders – Beneficiary of the ₹70,000 crore P-75I submarine programme, partnering with Germany's thyssenkrupp.
28. NLC India – Partnering with Reliance Industries on underground lignite gasification and progressing lignite-to-methanol initiatives.
29. NTPC – Acquired Ayana Renewable Power for $2.3 billion and is advancing a 30 GW nuclear power roadmap alongside hydrogen mobility projects.
30. Oil India – Targeting 100 wells in FY27, expanding into green fuels and compressed biogas while highlighting a significant Rajasthan discovery.
31. Poly Medicure – Expects FY27 growth of around 25% driven by acquisitions and expansion into high-tech medical equipment.
32. Premier Energies – Planning ₹5,100–6,000 crore capex, expanding solar cell and module capacities, and secured ₹2,577 crore of new orders.
33. Reliance Industries – Advanced commissioning of battery giga-factory with 40 GWh initial capacity, expanding toward 100 GWh. Scaling AI, telecom exports, clean energy, and green hydrogen initiatives.
34. RITES – Developing export-focused standard-gauge Vande Bharat trains and targeting an order book exceeding ₹10,000 crore in FY27.
35. Saregama – Increasing investment in premium music IP and AI monetization opportunities, with FY27 content investments of ₹300–350 crore.
36. Tata Elxsi – Launched AnaTel, an AI-powered healthcare software engineering and regulatory compliance platform.
37. Texmaco Rail & Engineering – Well positioned to benefit from the upcoming ₹40,000 crore railway wagon procurement cycle.
38. Titagarh Rail Systems – Expected to be a major beneficiary of the large upcoming Indian Railways wagon tender.
39. Trent – Management remains confident of a long growth runway, targeting 10x revenue growth through multi-brand expansion and international opportunities.
40. Waaree Energies – Preparing to raise up to $700 million through an institutional share sale to fund growth plans.
41. Wipro – Expanded AI partnership with ServiceNow, driving strong investor interest and a sharp move in ADRs.
42. Wockhardt – USFDA approved antibiotic Zaynich for complicated UTIs and received CDSCO approval for Zidebactam-Cefepime.
43. Yatharth Hospital – FY26 revenue grew 36%; targets 5,000 beds within three years supported by improving occupancy and profitability.
44. Zee Entertainment – In discussions for FIFA World Cup 2026 broadcasting rights and launching a dedicated sports channel portfolio.
45. Zen Technologies – Launched AI-powered Integrated Smart Border Suite and is scaling drone component manufacturing through portfolio company Vector Technics.

TechnoFunda Investing Quote from Legends -

This quote by Benjamin Graham emphasizes that successful investing isn't about having superior intelligence or complex strategies, but rather about maintaining discipline and emotional control. In the stock market, even the smartest individuals can make poor decisions driven by fear, greed, or impatience. Discipline—sticking to a sound investment process, avoiding impulsive actions, and staying committed during market volatility—often proves to be a more important trait than brilliance. In essence, consistent behavior beats sporadic genius.

📚 Book I'm Reading This Week Killing the Market Robert W. Wilson is the greatest investor of all time, on the only criterion that counts: percentage return on capital. What you make with what you have, what you started out with. Wilson would be the first to point out that there are investors richer than himself; but on a percentage-return basis, he is unmatched, and untouched. He received $15,000 from his mother in 1958, and he ran this stake to the fabulous sum of $230 million, by 1986. With assistance he himself sought out, he then nearly quadrupled his net worth to $800 million, by the year 2000. This return, after taxes no less, is more than 50,000 to one. More than 5,000,000 percent. Wilson did it in about forty years, without partners. How? How, possibly? This book, "Killing the Market," tries to find, or at least get close to, an answer. Robert Wilson quit the investing business in 1986, because he had "lost his touch," as he said. The most productive of men, the hardest working of men, he started to move into philanthropy. Eventually he became just about the most important philanthropist in the United States. Of the $800 million he accumulated, he had given away fully $700 million of it at the time of his death, in 2013 (by his own hand). Movingly, Robert Wilson's gifts were never to things that entertained him, or to pet projects; they were always to charities trying very hard to make the world a better place for everybody. List of All Books I have Shared →

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Capitalizing on Capabilities

This week, we explore a powerful idea from the Harvard Business Review article Capitalizing on Capabilities by Dave Ulrich and Norm Smallwood.

Most investors spend their time studying products, market share, capacity expansions, management commentary, or quarterly earnings. But some of the most valuable assets a business owns never appear clearly on the balance sheet.

These are organizational capabilities—the collective ability of a company to repeatedly solve problems, innovate, adapt, and execute better than competitors.

The market often notices capabilities only after they begin translating into superior earnings. By then, much of the value creation has already occurred.

What Exactly Are Capabilities?

Capabilities are not factories, brands, or patents.

They are the systems, processes, knowledge, culture, and accumulated expertise that allow a company to perform difficult tasks consistently over long periods.

A capability may include:

• Process engineering expertise
• Manufacturing precision
• Regulatory know-how
• Customer trust
• Supply-chain excellence
• Product development capabilities
• Execution culture

Unlike a plant that can be replicated with capital, capabilities are built over decades through experience and learning.

This is why they are often harder to copy than products themselves.

The Sansera Story: Compounding Industrial Capability

Many investors still view Sansera Engineering as an auto ancillary company.

However, that description increasingly understates what the business has become.

Sansera started with precision-engineered components for automotive applications. Over time, it continuously expanded into adjacent areas:

• Precision forging
• Advanced machining
• Hybrid and EV systems
• Aerospace components
• Defence manufacturing
• Semiconductor precision systems

At first glance, this appears like diversification.

But a closer look reveals something different.

Each new business was not built from scratch. Instead, it emerged from an existing capability base.

The company's expertise in precision manufacturing allowed it to tackle increasingly complex engineering problems across industries.

This creates a powerful flywheel:

More complex projects → More technical learning → Stronger capabilities → Greater customer trust → Access to harder opportunities

Over time, Sansera evolves from being merely a component supplier into a precision-engineering platform.

The market often sees diversification risk.

What it may actually be witnessing is capability compounding.

The Divi's Laboratories Case Study

Divi's increasingly resembles the type of organization described in the HBR article.

For decades, the company has quietly built expertise in:

• Process chemistry
• Impurity control
• Scale-up engineering
• Solvent recovery
• Regulatory compliance
• Environmental systems
• Backward integration

Individually, none of these capabilities appear particularly exciting.

They rarely become headline stories.

Yet together they create one of the most formidable operating moats in the pharmaceutical industry.

Interestingly, Divi's often describes itself through terms such as:

• Continuous process innovation
• Backward integration
• Large-scale manufacturing excellence

These may sound operational and even mundane.

However, in industries where reliability, consistency, and compliance are critical, these "boring" capabilities become extraordinarily valuable.

Capabilities Create Optionality

One of the most powerful consequences of capability building is optionality.

When a company develops deep expertise, it gains the ability to pursue opportunities that may not even exist today.

A new molecule, a new customer requirement, a supply-chain disruption, or a shift in global manufacturing patterns can suddenly create opportunities.

The companies best positioned to benefit are often not those with the biggest factories—but those with the strongest capabilities.

Divi's does not need to predict every future opportunity correctly.

Instead, its accumulated capabilities increase the probability that it can participate successfully when opportunities emerge.

This is precisely how capabilities become strategic assets.

Why Investors Often Miss Capability Builders

Capabilities rarely show up in quarterly results.

They don't generate immediate excitement.

In fact, capability-building often looks expensive in the short term:

• Additional R&D spending
• Higher employee costs
• Investments in systems
• Compliance infrastructure
• Process upgrades
• Technical talent acquisition

As a result, investors frequently focus on near-term earnings while overlooking the foundations being built underneath.

The challenge is that capabilities are invisible until they become visible through earnings.

And when the earnings arrive, the market suddenly begins assigning higher valuations.

Complexity → Capability → Valuation

One of the most important insights from the HBR article is that complexity itself is not valuable.

But complexity that develops unique capabilities can be extremely valuable.

A company serving multiple customers, industries, technologies, and regulatory environments gradually develops institutional knowledge that competitors struggle to replicate.

This creates:

• Higher qualification barriers
• Stronger customer relationships
• Greater adaptability
• More durable earnings
• Better future optionality

Eventually, the market rewards these characteristics with premium valuations.

Not because revenues are higher today.

But because future earnings appear more durable.

Investing Takeaway

Great businesses are often misunderstood because investors focus on what companies produce rather than what they are capable of producing.

The real source of long-term value frequently lies beneath the surface—in the organizational capabilities accumulated over years or decades.

Capabilities compound.

And when capabilities compound, opportunities expand, competitive advantages strengthen, and future earnings become increasingly durable.

For long-term investors, some of the biggest winners may not be the companies with the most exciting products today—but the companies quietly building capabilities that competitors will struggle to replicate tomorrow.

🚀 My Content For This Week 🎬 YouTube: How to find Winning Stocks | PEAD Strategy Deep Dive​ ​ 📋 Twitter: Vivek Mashrani, CFA @MashraniVivek Everyone wants the next multibagger stock! But almost no one wants to follow the system to find it again and again. Here’s why chasing hot tips keeps you stuck — and how a clear, repeatable processis what truly drives wealth… A thread 🧵🧵 12:4 PM • Jul 5, 2025 3 Retweets 13 Likes Read 8 replies ​ 📷 Instagram: Water your flowers. Cut your weeds.​ 🔗 Linkedin: $1,500,000,000,000 has been erased from the US stock market today. Absolute bloodbath.​

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Keep Compounding...

Vivek Mashrani, CFA Founder, TechnoFunda Investing

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