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Sectors in Focus

Major Corporate Developments This Week

1. Premier Explosives – Q1 net profit declined 80.1% YoY to ₹3.1 crore, impacted by elevated raw material prices.
2. Piramal Pharma – Block deal for around 6% equity stake; seller looking to raise ~₹1,750 crore.
3. KRBL – Q1 net profit rose 73.2% YoY to ₹260.7 crore despite 5.6% revenue decline.
4. Aditya Birla Real Estate – Entered Navi Mumbai redevelopment market with a Vashi project estimated to generate ~₹2,600 crore revenue.
5. Sammaan Capital – Q1 consolidated net profit declined 27.2% YoY to ₹243 crore.
6. Max Financial Services – Value of New Business increased 33% YoY to ₹446 crore.
7. JSW Cement – Q1 net profit stood at ₹160.6 crore versus a loss of ₹1,356 crore YoY; revenue grew 21.6%.
8. LG Electronics India – Q1 revenue rose 15.5%, EBITDA 26.2% and net profit 27% YoY.
9. Tata Motors PV – Q1 revenue increased 9.3%, while EBITDA declined 17.2% and net profit declined 80.3%.
10. Indigo Paints – Q1 revenue grew 19.7%, EBITDA 40% and net profit 61.1%.
11. Honasa Consumer – Q1 revenue rose 27%, EBITDA 140.2% and net profit 118.4%; highest-ever quarterly profit.
12. Brigade Enterprises – Q1 net profit increased 33.6% YoY to ₹200 crore.
13. Oswal Pumps – Received ₹78 crore order from North Bihar Power Distribution Company for rooftop solar projects.
14. RCF – Board approved fundraising of up to ₹1,100 crore through NCDs.
15. Aurobindo Pharma – Incorporated wholly-owned subsidiary Auropharm Overseas in India.
16. Stove Kraft – Incorporated a subsidiary in China and formed a 50:50 JV with Ningbo Wochi New Materials.
17. Relaxo Footwears – Reassessed manufacturing capacity to 9.1 lakh pairs/day from 10.5 lakh pairs/day.
18. DCW – Plans to invest up to ₹250 crore over the next 2–3 years for pigment capacity expansion and power plant improvement.
19. Aditya Birla Capital – Allotted NCDs worth ₹835 crore.
20. G R Infraprojects – Received ₹91.6 crore Letter of Award for a Multi Modal Logistics Park project in Varanasi.
21. BPCL – Board to consider fundraising through NCDs on August 18.
22. TVS Motor – Launched electric 3W TVS King EV MAX in Sri Lanka.
23. Waaree Energies – Subsidiary entered into JV with SmartenGrand to manufacture and supply semiconductor products.
24. APAR Industries – Closed QIP and allotted 16.9 lakh shares at ₹14,805/share.
25. Bank of Baroda – Completed issuance of USD 700 million notes.
26. Samvardhana Motherson – Issued ₹1,600 crore corporate guarantee for its subsidiary.
27. Escorts Kubota – Launched two new tractor models in its agri-machinery business.
28. DCX Systems – JV ELTX Systems signed additional non-binding MoU with Tamil Nadu government to expand proposed operations.
29. CDSL – Approved ₹5 crore investment in ONDC.
30. Ganesha Ecosphere – Fire incident reported at polyester staple fibre plant of subsidiary in Warangal.
31. Vesuvius India – To sell Gujarat business undertaking to Foseco India for ₹43 crore.
32. Saatvik Green Energy – Subsidiary received ₹132 crore order for supply of solar PV modules.
33. Manappuram Finance – Q1 NII rose 28.2% and AUM increased 57% YoY; net profit at ₹585 crore versus ₹138 crore.
34. RHI Magnesita India – Q1 revenue rose 5.6%, EBITDA 34.9% and net profit 83% YoY.
35. NBCC India – Q1 net profit increased 17.2% YoY to ₹154.8 crore.
36. Larsen & Toubro – Entered agreements to transfer Data Center & Cloud Services business to Vyoma.AI for ₹1,400 crore and divest LTNSPL stake for ₹30 crore.
37. TVS Motor / Bajaj Auto / Hero MotoCorp / Ola Electric / Ather Energy – EV 2W segment in focus after government approved additional ₹1,000 crore incentive allocation.
38. HG Infra Engineering – Received ₹241 crore Letter of Award from Rajasthan government.
39. Grasim Industries – Commenced commercial production at its 50,000 MTPA CPVC resin plant in Gujarat.
40. Firstsource Solutions – Entered partnership with Cresta to deliver AI technology solutions.
41. GMR Power & Urban Infra – Board to consider raising up to ₹3,000 crore through QIP, bonds and other instruments.
42. Natco Pharma – Board to consider fundraising through equity issuance.
43. Prestige Estates – CPPIB to invest up to ₹3,000 crore in Prestige Hospitality and acquire up to 28% stake.
44. Zydus Lifesciences – Sentynl entered pact with Mereo BioPharma for commercial and manufacturing rights of Alvelestat.
45. BEML – Received ₹184 crore order from HAL for Light Combat Helicopter fuselage aerostructures.
46. KFin Technologies – Launched agentic AI solution Klarity for BFSI signature fraud prevention.
47. Muthoot Microfin – Shareholders approved fundraising through private placement.
48. SBI – Completed issuance of USD 500 million senior unsecured notes.
49. CAMS – Acquired first tranche of Think founders' stake, increasing holding to 77.7%.
50. Diamond Power Infrastructure – Secured ₹195 crore order from Rajesh Power Services for underground power cables.
51. ITI – Signed pact with Airtel Business to accelerate digital transformation.
52. Omaxe – Subsidiary received RERA certificate for a project in Uttar Pradesh.
53. Dr Agarwal's Health Care – TPG and Temasek to sell 11% stake at ₹500/share.
54. Thyrocare Technologies – ₹1,000 crore block deal; 1.5 crore shares at ₹630–631 floor price.
55. Tenneco Clean Air – Promoter Tenneco Mauritius to sell 8% stake at ₹515/share.

TechnoFunda Investing Quote from Legends -

In this quote, Jesse Livermore emphasizes the importance of patience and discipline in trading, highlighting that successful investing is less about constant buying and selling (or "thinking") and more about holding onto positions for the long term without being swayed by market fluctuations. Livermore's experience taught him that it is not feasible to capture every market movement; instead, real profits are realized by "sitting tight" and allowing investments the necessary time to grow. This principle of maintaining a long-term perspective is crucial for traders aiming to succeed in the often volatile environment of the stock market.

📚 Book I'm Reading This Week Business Adventures "Business Adventures" by John Brooks is a compelling collection of thirteen stories that explore the dramatic and often unpredictable world of corporate and financial life in America. Through detailed and engaging reportage, Brooks examines iconic moments such as the $350 million disaster of the Ford Edsel, the rapid rise of Xerox, and the astonishing scandals at General Electric and Texas Gulf Sulphur. These stories, as relevant today as they were at the time of their occurrence, reveal the volatility and intricate workings of Wall Street and corporate world. By delving into events like the 1962 market crash, the collapse of a prominent brokerage firm, and efforts to stabilize the British pound, Brooks's narratives demonstrate that history often repeats itself, offering timeless insights into the machinations and adventures of the financial world List of All Books I have Shared →

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Technofunda 101

Great, Good & Gruesome Businesses

Not all growth is created equal

When evaluating a company, investors often start with the same questions: How fast can revenues grow? How large is the market? What is the valuation?

Warren Buffett often approached the problem differently.

In his 2007 letter to Berkshire Hathaway shareholders, Buffett described three broad types of businesses: great, good and gruesome.

The distinction is not about whether a company is growing or whether its stock is cheap.

It is about something far more fundamental:

What happens to every rupee the business earns—and how much capital is required to keep growing?

That distinction can separate a wonderful long-term investment from a business that slowly consumes shareholder capital.

Great Businesses: Growth Without Much Capital

Great businesses are rare.

They can grow while requiring relatively little additional capital, allowing a large portion of the earnings they generate to be retained or distributed to shareholders.

Their competitive advantages—what Buffett famously calls a "moat"—protect them from competition.

The moat can come from a powerful brand, network effects, switching costs, structural cost advantages, intellectual property, distribution, or simply an extraordinary position within an industry.

But the existence of a moat is not enough.

The real question is:

Can the moat survive?

A business may have a dominant position today and still be a poor long-term investment if competition gradually erodes its economics.

The greatest businesses therefore possess something more valuable than a moat.

They possess a durable moat.

Think about businesses that can increase prices without losing customers, grow volumes without proportionately increasing capital expenditure, and reinvest incremental capital at high returns.

These are the businesses where time becomes an ally.

Every passing year strengthens the economics.

Good Businesses: Attractive, But Capital Hungry

Then there are good businesses.

They may possess competitive advantages, operate in attractive industries, and generate respectable returns on capital.

But there is a catch.

To keep growing, they need to continuously reinvest.

They may need new factories, branches, warehouses, technology, working capital, distribution infrastructure or additional employees.

This does not make them bad businesses.

In fact, many can create enormous shareholder wealth.

But investors need to understand the economics.

Suppose two companies each generate ₹100 crore of additional profits.

Company A needs to reinvest only ₹20 crore to generate the next ₹100 crore.

Company B needs to reinvest ₹80 crore.

Both are growing.

Both may report impressive earnings.

But the economic value of that growth is very different.

This is why growth should never be viewed in isolation from the capital required to achieve it.

Good businesses can become great businesses if they improve their capital efficiency.

But they require continuous execution and sensible capital allocation to get there.

Gruesome Businesses: Growth That Eats Capital

Then come the businesses Buffett describes as gruesome.

These are perhaps the most dangerous because they can look attractive from the outside.

They may have growing revenues.

They may operate in large markets.

They may even report profits.

But underneath the surface, the business constantly requires fresh capital simply to maintain or expand its position.

Competition prevents pricing power.

Returns on capital remain low.

Capacity additions create more supply.

And management must continually reinvest just to stand still.

This is where the famous Buffett lesson becomes particularly relevant:

A growing business is not necessarily a wealth-creating business.

If every additional rupee of revenue requires almost a rupee of additional capital, growth can actually destroy value.

Airlines: The Classic Example

Few industries illustrate this better than airlines.

Air travel can be a fantastic growth industry.

More people fly every year. Rising incomes increase demand. New routes open up. Passenger traffic expands.

Yet airlines have historically been among the most difficult businesses in which to generate sustainable returns.

Why?

Because growth requires enormous amounts of capital.

More passengers require more aircraft.

More aircraft require more financing.

More capacity attracts competition.

Competition pressures ticket prices.

And when capacity exceeds demand, profitability can disappear rapidly.

The industry can grow while shareholders struggle to earn attractive returns.

This is the difference between revenue growth and economic value creation.

Buffett's experience with Berkshire Hathaway's textile business taught him a similar lesson.

The business could grow, but the economics remained poor.

Capital was continually required, competition remained intense, and the returns generated were inadequate.

Buffett later described the investment as one of his greatest mistakes.

The lesson wasn't simply that textiles were a bad industry.

It was that a cheap price cannot permanently fix poor business economics.

The Most Important Question: Where Does The Incremental Rupee Go?

This framework changes the way we should analyse companies.

Instead of simply asking:

"How fast can this company grow?"

Ask:

"How much capital does it need to achieve that growth?"

And then:

"What return does it earn on that incremental capital?"

These questions take us from accounting growth to economic growth.

A company growing earnings at 15% while earning 30% on incremental capital can be dramatically more valuable than one growing at 20% but earning only 8% on the capital required to achieve it.

The headline growth number tells only half the story.

The capital intensity tells us the other half.

The Real Moat Is Not Just Competitive Advantage

This is also why a moat should be viewed dynamically.

A company may have a strong competitive advantage today, but if maintaining that advantage requires enormous reinvestment, the economics may not be as attractive as they appear.

Conversely, a company with a modest but durable advantage that requires very little incremental capital can become an extraordinary compounder.

The ideal business therefore combines three characteristics:

Strong competitive advantage + high returns on capital + low reinvestment requirements.

That is where compounding becomes truly powerful.

A Simple Framework for Investors

When evaluating a business, try placing it into one of Buffett's three buckets.

Great:​
The business has a durable moat, earns high returns on capital, and can grow without consuming excessive amounts of capital.

Good:​
The business has attractive economics and competitive advantages, but requires meaningful reinvestment to sustain growth.

Gruesome:​
The business requires substantial capital merely to remain competitive, while industry economics keep returns on that capital low.

The objective isn't necessarily to avoid every "good" business.

The objective is to recognise what you are actually buying.

Because a good business at the right price can be a great investment.

And even a great business can be a poor investment if purchased at an unreasonable valuation.

But over long periods, business quality matters enormously.

Investing Takeaway

The stock market often rewards growth.

But shareholders are ultimately rewarded by profitable growth.

And profitable growth becomes truly powerful when it can be achieved with little incremental capital.

That is the magic of a great business.

It generates cash, reinvests some of it at high returns, grows, and then generates even more cash—without constantly asking shareholders for additional capital.

That is why Buffett's framework remains so relevant.

Great businesses make time your friend.

Good businesses require judgment.

Gruesome businesses make time your enemy.

The investor's job is not merely to find companies that can grow.

It is to find companies where growth actually creates value.

🚀 My Content For This Week 🎬 YouTube: 5 Rules of Successful Stock Investing in India​ ​ 📋 Twitter: Vivek Mashrani, CFA @MashraniVivek Finding the right stock starts long before you open a screener. I distilled the entire process into a 3-step framework. Step 1: Screen for Price Volume Strength Start with what the market is already telling you. Which stocks and sectors are showing genuine price-volume action: 12:8 PM • Jul 17, 2026 3 Retweets 18 Likes Read 5 replies ​ 📷 Instagram: Glimpse of Samrajya 2026​​ 🔗 Linkedin: Glimpse of Samrajya 2026​

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Keep Compounding...

Vivek Mashrani, CFA Founder, TechnoFunda Investing

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