Welcome to the Technofunda Investing community. Thank you for being Life Long Learner...!!!

Share this newsletter Via: LinkedIn, WhatsApp, Twitter​

You can view all previous newsletters here​

Sectors in Focus

Major Corporate Developments This Week

1. Max Healthcare – To infuse Rs 87.87 crore into Kalinga Hospital via rights issue.
2. Fractal Analytics – Fractal Analytics Sweden AB liquidated effective July 15, 2026, to simplify group structure.
3. Shanthi Gears – Appointed Sai Krishna Alluri as CFO with immediate effect, replacing the Interim CFO effective September 3, 2026.
4. IRFC – JCR upgraded its long-term issuer credit rating to ‘A-’ with Stable outlook from ‘BBB+’ with Stable outlook.
5. Ceigall India – Received an LoI worth approximately Rs 5,300 crore from REC Power Development and Consultancy for a Gujarat power-transmission project.
6. RVNL – Emerged as the lowest bidder (L1) for a Rs 404.88 crore East Coast Railway project involving third-line works, bridges, track linking and allied infrastructure, with a 30-month execution period.
7. PVP Ventures – Acuité assigned ‘BBB-’ with Stable outlook ratings to two NCDs aggregating Rs 150 crore.
8. Great Eastern Shipping – Commencement of buyback of equity shares of up to Rs 900 crore at a maximum price of Rs 1,530 per share through the open-market route from September 4, 2026.
9. TeamLease Services – Gujarat High Court hearing in the dispute over Provident Fund (PF) applicability to National Employability Enhancement Mission (NEEM) trainees was adjourned; next hearing scheduled for September 22, 2026.
10. Indian Energy Exchange – Recorded its highest-ever monthly electricity traded volume of 13.94 billion units (BU) in August 2026, up 20.2% YoY; Real-Time Market volume rose 10.6% to 5.56 BU.
11. Power Grid Corporation of India – Declared successful bidder under TBCB for the 7,500 MW Lakadia Renewable Energy Zone transmission project in Gujarat; LoI received on September 3, 2026, with annual transmission charges of Rs 1,152.49 crore.
12. RBL Bank – Received a notice proposing GST demand of Rs 164.14 crore, including interest and penalty, for FY2022-23 over a mismatch in input tax credit reported for its bullion business.
13. Bharat Forge – WOS Kalyani Strategic Systems signed a Strategic Alliance Agreement with Thales to establish indigenous production of 70-mm unguided and laser-guided rocket systems. It also signed an MoU with FN Herstal for a potential JV covering small arms, integrated weapon systems and counter-UAS solutions in India.
14. Lalithaa Jewellery Mart – Launched its 65th showroom, a 6,918 sq. ft. outlet at Redhills, Chennai, as part of its ongoing retail expansion.
15. HEG Advanced Materials – Composite Scheme became effective; graphite business demerged into HEG Graphite and Bhilwara Energy amalgamated into HEG Advanced Materials.
16. HUDCO – Japan Credit Rating Agency upgraded its long-term foreign and local currency issuer ratings to A- from BBB+, with a Stable outlook.
17. Cipla – NCLT Mumbai Bench allowed the application for amalgamation of wholly owned subsidiary Inzpera Healthsciences with Cipla, dispensing with meetings of equity shareholders and unsecured creditors.
18. Adani Energy Solutions – GQG Partners and associated funds sold 19.97 million shares, or 1.63%, through open-market transactions, reducing aggregate holding from 5.09% to 3.46%.
19. Ramco Systems – Signed MoU with Safran Helicopter Engines for engine-data integration.
20. Shriram Finance – ICRA assigned [ICRA]AAA; Stable rating to a new Rs 5,000 crore Non-Convertible Debenture programme.
21. Sterlite Technologies – Board approved Rs 3,000 crore capex for 50% capacity expansion by FY29.
22. Steel Strips – Re-appointed Dheeraj Garg as Managing Director and enhanced borrowing limit to Rs 3,500 crore.
23. CIAN Agro – Appointed Nikhil Nitin Gadkari as MD for five years.
24. Share India Securities – Re-appointed Parveen Gupta as MD for five years.
25. Welspun Investments – Board approved up to Rs 1,285 crore infusion into subsidiary and up to Rs 1,000 crore investment in promoter group company.
26. CreditAccess Grameen – Secured Rs 300 crore through bilateral NCD issuance.
27. Avalon Technologies – Formed a 51:49 electronics manufacturing JV with Germany’s Zollner Elektronik AG for PCBA, box-build and system integration in India; Avalon has an option to increase its stake to 51% after three years of commercial production.
28. Uno Minda – GST appellate authority reduced demand to Rs 5.02 crore tax plus Rs 0.50 crore penalty.
29. UltraTech Cement – Launched Ultravolt wires & cables business with Rs 1,800 crore investment.
30. Sundrop Brands – Fatal accident at Del Monte Hosur plant on September 3, 2026, killed one worker; pizza sauce line stopped.
31. HAL – GE Aerospace shipped three F404-IN20 engines to HAL in August 2026 for the indigenous fighter jet programme, supporting aircraft production.
32. Utkarsh Small Finance Bank – CARE assigned A- Stable rating to proposed Rs 500 crore Tier II bonds and reaffirmed existing Rs 200 crore bonds.
33. Diamond Power Infrastructure – Received Rs 76.1 crore order, including GST, for supply of 66 kV EHV underground power cables for a transmission project in Gujarat, covering approximately 293 km of cables.
34. Cemindia Projects – ICRA upgraded long-term ratings to AA (Stable) from A+ (Stable) for term loans and working capital facilities; non-fund-based facilities upgraded to AA (Stable)/A1+.
35. Cohance Lifesciences – Will invest USD 18 million, increasing its stake in NJ Bio to 67.3% and Aruka Bio to 65%.
36. Orchid Pharma – Board appointed Arjun Dhanuka as Whole-Time Director for five years.
37. Cipla – Announced exclusive partnership with Qilu Pharmaceutical for licensing and supply of biosimilar Keytruda (Pembrolizumab) in the US.
38. WeWork India – To develop a 10 MWp solar power plant in Karnataka, accelerating its goal of transitioning to 100% renewable electricity.
39. SAIL – India Ratings upgraded issuer and public deposit ratings to AA+ (Stable) from AA (Stable); bank loan facilities upgraded/affirmed at IND AA+/Stable / IND A1+.
40. Nazara Technologies – Acquired an additional 4.1% stake in Funky Monkeys for Rs 1.9 crore through a secondary purchase, increasing stake to 68.1% from 64%.
41. NLC India – Signed addendum to the business transfer agreement with NLC India Renewables for the proposed transfer of 708.96 MW renewable energy assets, including a 4 MW green hydrogen project.
42. ITC – ITC Infotech agreed to acquire 22.106% of Happiest Minds Technologies from its promoter group, including founder Ashok Soota and Ashok Soota Medical Research LLP.
43. ONGC – Plans to spend more than Rs 30,000 crore on capex this year to boost revenue, strengthen its gas portfolio and drive growth across the energy value chain.
44. Lodha Developers – Acquired the remaining 20% stake in Bellissimo Infratech for Rs 73.52 crore in cash, making it a wholly owned subsidiary.
45. NCC – Received three orders worth a total of Rs 430.19 crore during August 2026, pertaining to the buildings division.
46. E2E Networks – Entered into a binding term sheet with an Indian sovereign AI company to provide NVIDIA Blackwell cloud GPUs and allied services, with aggregate contract value of approximately Rs 1,000 crore excluding taxes, valid until June 2029.
47. HDFC Bank – Market-cap gap with ICICI Bank narrowed to Rs 49,167 crore, with HDFC Bank valued at Rs 10.93 lakh crore and ICICI Bank at Rs 10.43 lakh crore.
48. Cipla – Secured exclusive rights to develop and commercialise an experimental HER2-targeted cancer drug in India, South Africa and five other emerging markets through a licensing agreement with Chia Tai Tianqing Pharmaceutical Group.
49. Milky Mist Dairy Food – Reported an 829% YoY jump in net profit to Rs 65 crore in Q1CFY.
50. Brigade Enterprises – Announced entry into Coimbatore with plans to develop a residential project spread across 5.4 acres in Saravanampatti.
51. PVR INOX – Approved buyback of up to 20,68,965 fully paid-up equity shares at Rs 1,450 per share, aggregating up to Rs 300 crore.
52. EPL – Blackstone-owned Epsilon Bidco Pte to sell up to 26.4% equity through a block deal, potentially raising around Rs 1,985 crore at an offer price of Rs 235 per share.
53. Himadri Speciality Chemical – Incorporated wholly owned subsidiary Ardent Impex FZCO in Dubai Airport Free Zone, Dubai.
54. Kiri Industries – Board approved issue of 60.83 lakh warrants to promoters and promoter group members at Rs 475 per warrant.
55. Welspun Corp – Welspun Slagexcel Private Limited incorporated on August 31, 2026; Welspun Corp holds 26%.
56. Indo Borax – India Ratings placed bank facilities on negative rating watch following the Kronox Lab acquisition announcement.
57. Avenue Supermarts – CRISIL assigned AAA/Stable rating to Rs 1,000 crore NCDs.
58. Nephro Healthcare – Uzbekistan tax department raised Rs 14.79 crore assessment and penalty on NCA for 2023-25; company plans to appeal.
59. Antony Waste Handling Cell – Issued corporate guarantee in favour of ICICI Bank for credit facilities availed by subsidiary Mumbai Eco Solutions.
60. ICICI Bank – Priced USD 500 million senior unsecured notes at 5.308%, maturing September 3, 2029.
61. Shanti Gold – Invested Rs 3.88 crore in Lalithaa Jewellery Mart, acquiring 1,44,817 shares on August 31, 2026.
62. Indo Tech Transformers – Won Rs 55 crore order from Waaree Renewable Technologies for five transformers, to be executed by April 2027.
63. Muthoot Finance – Board approved scheme of amalgamation of wholly owned subsidiary Muthoot Money with Muthoot Finance.
64. Unimech Aerospace & Manufacturing – Shareholders approved raising funds through a QIP.
65. Astra Microwave – CRISIL upgraded long-term and corporate ratings to A+/Stable and reaffirmed A1 short-term rating.
66. Jindal Worldwide – Jindal Mobilitric plans to expand retail footprint to 100 showrooms by FY28, reinforcing nationwide EV ambitions.
67. Time Technoplast – Secured order worth approximately Rs 87.53 crore from a PSU JV for supply of Type IV composite CNG mobile storage cascades.
68. SEAMEC – Signed addenda to acquire vessel SEAMEC ANANT; revised readiness date to September 15, 2026 and cancelling date to October 15, 2026.
69. Tribhovandas Bhimji Zaveri – Promoters agreed to sell 74.12% stake to GRT Jewellers at up to Rs 209 per share; GRT launched an open offer for up to 25.88% stake at Rs 249.61 per share.
70. International Gemological Institute – Step-down subsidiary IGI Dubai approved consolidation of control over IGI Botswana.
71. Sterlite Technologies – Clarified that the previously announced long-term supply agreement with a leading hyperscaler was executed by a wholly owned subsidiary and not directly by Sterlite Technologies.
72. Indegene – US court preliminarily approved settlement in class-action case involving subsidiary Indegene Inc.; final approval hearing scheduled for January 12, 2027.
73. Cantabil Retail – Opened seven new showrooms in August 2026, taking total stores to 682.
74. Zee Entertainment – Corrected preferential warrant disclosure; post-conversion shareholding should be 2.01% instead of 1.40%.
75. Midwest – Accepted LoIs for three granite quarry leases in Andhra Pradesh under raising-cum-sale contracts.
76. PNB Housing Finance – Board to meet on September 7, 2026, to consider NCD fundraising via private placement.
77. Electronics Mart India – Will close one Audio & Beyond MBO in Hyderabad from August 31, 2026.
78. Epack Prefab – EPACK Data Center Solutions Pvt Ltd incorporated on August 31, 2026, for data centre and IT services.
79. Wheels India – Revised preferential issue price to Rs 1,461 per share from Rs 1,418 per share following NSE observations; total fundraise remains Rs 180 crore.
80. SJVN – Successfully completed a 72-hour trial run of 660 MW Unit-2 of the 1,320 MW Buxar Thermal Power Project in Bihar.
81. Happiest Minds – Promoters to sell 22.1% stake for Rs 1,329.7 crore; board also approved merger with ITC Infotech, with shareholders receiving 25 ITC Infotech shares for every 81 Happiest Minds shares.
82. Lux Industries – Board approved demerger of Vertical A business into Lux and Cozi and Vertical C business into Lux Global; shareholders to receive one share of each entity for every Lux Industries share held.
83. Mankind Pharma – Completed sale of its entire 100% stake in Broadway Hospitality Services to AKRK Projects LLP and its partners.
84. Spectrum Electrical – NSE and BSE granted in-principle approval for 13,73,625 shares and 2,49,750 warrants, worth up to Rs 324.99 crore.
85. NLC India – Received LoI from Telangana government for composite licences of Govindpur and Parvathapur Vanadium, Titanium & Aluminous Laterite blocks after emerging as preferred bidder.
86. NLC India Renewables – Incorporated JV company NIRL OREDA Renewables with Odisha Renewable Energy Development Agency in a 51:49 ratio to develop green energy power plants.
87. Sanofi India – Received GST show-cause notice alleging misclassification of certain products at 5% GST instead of 12% for FY21; proposed tax demand of Rs 36.39 crore plus equivalent penalty.
88. Anupam Rasayan – CRISIL continued ratings on Rs 1,620 crore bank facilities and Rs 160 crore NCDs at A+/Watch Developing; short-term rating maintained at A1/Watch Developing.
89. Welspun Corp – Cancelled proposed sale of 26% stake in Clean Max Dhyuthi to promoter group company Welspun Living for Rs 7.6 crore due to current power demand-supply considerations

TechnoFunda Investing Quote from Legends -

Robert D. Arnott's quote, "In investing, what is comfortable is rarely profitable," emphasizes the idea that successful investing often requires stepping outside of one's comfort zone. Comfortable decisions usually align with popular trends or low-risk options, which can lead to mediocre returns. True profitability often comes from making bold, informed choices that might feel uncomfortable at the time, such as investing in undervalued assets, enduring market volatility, or going against the crowd. The quote encourages investors to embrace calculated risks and the uncertainty that comes with pursuing higher rewards

📚 Book I'm Reading This Week Competition Demystified Bruce Greenwald, presents a new and simplified approach to strategy that cuts through much of the fog that has surrounded the subject. Based on his hugely popular course at Columbia Business School, Greenwald and his coauthor, Judd Kahn, offer an easy-to-follow method for understanding the competitive structure of your industry and developing an appropriate strategy for your specific position. Over the last two decades, the conventional approach to strategy has become frustratingly complex. It's easy to get lost in a sophisticated model of your competitors, suppliers, buyers, substitutes, and other players, while losing sight of the big question: Are there barriers to entry that allow you to do things that other firms cannot? List of All Books I have Shared →

TechnoFunda 101 - Power Capsules

Learn technical as well as fundamental concept in a simple way

Technofunda 101

The Best Businesses Don’t Just Grow — They Get Better

Why operating leverage is more powerful than revenue growth

One of the easiest mistakes in investing is to equate growth with improvement. A company can grow its revenue by 20% every year and still become a worse business. It may require proportionately more capital, more employees, more working capital and more debt to support that growth. Revenue gets bigger, but the economics don't necessarily improve.

The businesses worth owning for long periods often display a different characteristic: growth itself improves the underlying economics of the business.

As they scale, their fixed costs get spread over a larger revenue base, customer acquisition becomes more efficient, infrastructure gets better utilised, purchasing power improves, processes become more efficient and incremental margins expand. The company isn't merely becoming larger. It is becoming structurally more profitable.

This is the power of operating leverage.

Revenue Growth vs Economic Growth

Consider two companies, both growing revenue from ₹1,000 crore to ₹2,000 crore.

Company A requires ₹800 crore of additional capital, adds thousands of employees and sees EBITDA margins remain at 12%.

Company B requires only ₹200 crore of additional capital and sees EBITDA margins rise from 12% to 20%.

Both companies have doubled revenue. But economically, they are completely different businesses.

Company A has essentially replicated its existing business at twice the scale.

Company B has created a business that becomes more valuable as it becomes larger.

That distinction is easy to miss when investors focus primarily on topline growth.

The real question is not “How fast can this company grow?”

It is:

The Hidden Magic of Fixed Costs

Some businesses have a large upfront investment but relatively low incremental costs.

An airport is a simple example. Building the runway, terminal, security infrastructure and other facilities requires enormous capital. But once the infrastructure exists, handling the next passenger does not require building another airport.

The same principle appears in many less obvious businesses.

A software company may spend heavily building a product, but adding the 10,001st customer may require very little additional development expenditure.

A stock exchange can process dramatically higher trading volumes without increasing its physical infrastructure proportionately.

A diagnostic laboratory can increase the utilisation of its existing network and equipment.

A specialty chemical plant can improve profitability as utilisation rises because fixed manufacturing costs are spread across more tonnes.

In each case, scale changes the cost structure.

And when scale changes the cost structure, growth can create margin expansion.

The Indian Example: CDSL

Take the evolution of India's capital-market infrastructure.

The number of investors, demat accounts and financial transactions has expanded enormously over the past decade. Yet the infrastructure required to maintain the underlying securities ecosystem does not need to double every time the number of investors doubles.

Once the technology, regulatory framework and systems are established, additional participants can often be served at a relatively low incremental cost.

That creates a powerful combination:

more participants → more transactions → relatively modest incremental costs → higher operating margins → stronger cash generation.

This is why certain financial-infrastructure businesses can become dramatically more profitable as the ecosystem expands.

The important insight isn't simply that the Indian capital market is growing.

It is that some participants in that growth have economics that improve with scale.

The Counterexample: Growth That Consumes Capital

Now consider a business where every additional ₹100 crore of revenue requires roughly ₹100 crore of additional assets, employees, inventory and working capital.

Growth may look impressive on the income statement, but the balance sheet is constantly running behind it.

This is common in businesses such as manufacturing, infrastructure, distribution and certain consumer businesses.

There is nothing inherently wrong with capital-intensive growth. The problem arises when investors value such companies as though revenue growth automatically translates into free cash flow.

A company growing at 25% but requiring almost all of its operating cash flow to fund that growth can be far less attractive than a company growing at 15% while converting most of its profits into cash.

Growth has a cost. The best businesses gradually reduce that cost.

When Growth Becomes a Flywheel

The most interesting businesses often combine operating leverage with another reinforcing advantage.

More customers create more data.

More data improves the product.

A better product attracts more customers.

More customers increase utilisation.

Higher utilisation improves margins.

Higher margins generate more cash.

That cash can be reinvested into the product.

And the cycle begins again.

This is a business flywheel.

At the beginning, growth may require significant investment. But if the model works, the economics can improve with every turn of the flywheel.

That is fundamentally different from a business that must continually spend more money simply to maintain its position.

The Investor's Test

Whenever you encounter a company growing rapidly, don't stop at revenue growth or EPS growth.

Ask three questions.

First: What happens to margins as the company scales?

If revenue doubles, should margins improve, remain stable or deteriorate?

Second: What happens to incremental capital requirements?

How much additional capital is required to generate the next ₹100 of revenue?

Third: Where does the next rupee of profit go?

Does it come back to shareholders as free cash flow, or does it have to be reinvested simply to keep the business growing?

These questions often reveal more about the quality of growth than the headline growth rate itself.

The Bigger Lesson

Investors naturally gravitate towards companies growing the fastest.

But the most valuable growth is not necessarily the fastest growth. It is growth that makes the business better.

A company that grows 20% while margins expand, capital intensity falls and cash conversion improves can be far more valuable than one growing 30% while consuming increasing amounts of capital.

This is why, over long periods, investors should look beyond:

“How much will earnings grow?”

and ask:

“What will happen to the economics of every incremental rupee of revenue?”

Because the ultimate compounding machine isn't simply a company that sells more.

It is a company where selling more makes the next rupee more profitable than the previous one.

That is when growth stops being merely growth — and starts becoming a moat.

🚀 My Content For This Week 🎬 YouTube: How to pick TOP PERFORMING STOCKS? How to Create Best Stocks Portfolio?​ ​ 📋 Twitter: Vivek Mashrani, CFA @MashraniVivek There is always a Bull Market somewhere Don't just keep looking at the index. A lot of tomorrow's winners are outside the index. Source: A clip taken from Vijay Kedia sir's interview on @etnow #Stockmarket #Investment #wealth 1:13 PM • Jul 21, 2026 11 Retweets 96 Likes Read 4 replies ​ 📷 Instagram: 100s of Data Point in Investing ​ 🔗 Linkedin: Smart investing isn’t about finding one perfect stock.​

🎙️ My Weekly Podcast For You

​​

Keep Compounding...

Vivek Mashrani, CFA Founder, TechnoFunda Investing

You Can Share This Newsletter...!!! ​​​

Follow all my content on my social media handles below ​​​​​​​​

Disclaimer:

• The content provided on this page by the publisher is not guaranteed to be accurate or comprehensive. All opinions and statements expressed herein are solely those of the author.
• The information found on this newsletter should not be interpreted as investment advice, nor does it express any viewpoint on the future trading prices of any company's securities. The opinions and information shared here should not be taken as specific guidance for making investment decisions.
• The content, including opinions and expressions, present on this newsletter, is not a direct or indirect offer or solicitation to buy or sell securities or financial instruments mentioned. The securities quoted are for illustration only and are not recommendatory.
• Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
• By accessing the site or affiliated social media accounts, you signify your agreement to this disclaimer and the terms of use.
• Neither the publisher nor its affiliates assume liability for any direct or consequential losses arising directly or indirectly from the use of the information provided in this content.

Shivalik Parkview, Ahmedabad, Gujarat 380058
​Unsubscribe · Preferences​