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. Morepen Laboratories to raise up to Rs. 350 cr via QIPs.
2. Ambuja Cements proposes to establish a state-of-the-art cement grinding unit with an investment of Rs. 1000 Cr in Motia Village of Godda district in Jharkhand, post requisite approvals with a capacity of 4.0 MTPA.
3. IRCTC is partnering with Swiggy for pre-ordered meals on trains.
4. Orchid Pharma, based in Chennai, India, has received approval by the United States Food and Drug Administration (USFDA) for its novel invention, ‘Enmetazobactam’. Enmetazobactam is the first completely invented-in-India Beta Lactamase Inhibitor.
5. Kalyani Steels has signed a Memorandum of Understanding (MOU) with the Government of Odisha on February 23, 2024, expressing an intent to setup : a) 0.7 MTPA Integrated Advanced Specialty Steel & Automotive Components Manufacturing Complex with an estimated investment of Rs. 6,626 Crore and; b) Phase 1 of Integrated Titanium Metal / Alloy and Aerospace & Defense Components Manufacturing Plant of 10,000 TPA capacity with an estimated investment of Rs.5,124 Crore, in the State of Odisha.
6. Mahindra Lifespace Developers announced the successful sales of India's first Net Zero Waste + Energy residential project, Mahindra Vista, located in Kandivali East, Mumbai. Following its recent launch, the project has sold over Rs. 800 Crore worth of inventory within three days.
7. Olectra Greentech and Evey Trans Pvt Ltd has received a Letter of Award (LOA) from Brihan Mumbai Electric Supply & Transport Undertaking (BEST / Authority) for Supply, Operation and Maintenance of 2,400 Electric Buses on Gross Cost Contract Basis.
8. Grasim Industries announced the launch of products and services under its new decorative paints brand, Birla Opus, aiming for Rs. 10,000 Cr gross revenue within 3 years of full-scale operations.
9. The Buildings & Factories (B&F) vertical of Larsen & Toubro (L&T) has recently secured an order from a reputed real-estate developer to construct Multi storeyed residential towers at Thane in the Mumbai, metropolitan Region.
10. LTIMindtree has signed a MoU with Eurolife FFH, a leading insurance company in Athens to establish first-of-its-kind Gen Al and Digital Hub in Athens and dedicated facilities in Poland, Europe and Mumbai.
11. Zen Technologies bagged order worth Rs 93 cr from Defence Ministry.
12. Patel Engg JV declared lowest bidder for a project Rs. 525.36 cr for a construction project in Telangana.
13. Tata Power subsidiary signed deal with BluSmart to supply green power.
14. HFCL to set up optical fibre cable manufacturing unit in Poland for Rs. 144 crore.

TechnoFunda Investing Quote from Legends -

Peter Thiel's quote emphasizes the essence of contrarian thinking as more than mere opposition to popular beliefs. Contrarianism, in his view, involves critically assessing conventional wisdom, offering thoughtful critiques, and presenting better alternatives. Thiel suggests that true contrarianism doesn't always mean going against the crowd; instead, it involves independent thinking, being open to diverse possibilities, and making informed decisions based on personal analysis. The quote encourages to think for themselves, advocating for a balanced approach that considers both contrarian and consensus perspectives to make well-informed choices.

📚 Book I'm Reading This Week ​​​​​​Big Money Thinks Small – Biases, Blind Spots, & Smarter Investing In Big Money Thinks Small, veteran fund manager Joel Tillinghast urges investors to act cautiously and follow five primary steps to successful investing: (1) know yourself; (2) make decisions based on your own knowledge; (3) select trustworthy and capable colleagues and collaborators; (4) avoid businesses that seem destined to fail; and (5) always search for bargains. Patience and methodical planning will pay far greater dividends than rash, bold investments. Through sensible instruction, Tillinghast teaches readers how to ask the right questions in any investing situation and think objectively and generatively about portfolio management. List of All Books I have Shared →

TechnoFunda 101 - Power Capsules

Learn technical as well as fundamental concept in a simple way

Return on Invested Capital & Competitive Strategy Analysis

To grasp how a company generates shareholder value, we employ a metric called Return on Invested Capital (ROIC). It indicates whether a company's strategy is effectively translating into competitive success. ROIC measures the company's profitability and capital efficiency. It combines two ratios: NOPAT/Sales (profit per unit) and Sales/Invested Capital (capital turnover), reflecting a company's margins and how efficiently it uses its capital to generate sales. The multiplication of these two ratios eliminates sales, resulting in NOPAT/Invested Capital—our ROIC.

An ROIC in excess of the cost of capital reflects competitive success that is the result of a strategy. Understanding how a company achieves its returns can provide guidance in assessing whether they will be sustainable. Michael Porter, a professor of strategy at Harvard Business School, identified differentiation and cost leadership as generic strategies to gain an advantage. Differentiation means that a company can price its good or service at a premium to others. Cost leadership means a company can deliver its offering at a relatively low price. Knowing how a company generates an attractive ROIC can inform competitive strategy analysis.

So a firm with a high ROIC either excels in profitability through differentiation—offering unique products that command a premium—or achieves cost leadership by delivering products or services at lower prices compared to competitors. Retailers provide a clear example. For example, a retailer that is a cost leader may have a 3 percent NOPAT/Sales ratio and a 6 times Sales/Invested capital ratio. This would generate an ROIC of 18 percent. A differentiated luxury goods seller, on the other hand, may reach the same ROIC with an 18 percent NOPAT/Sales ratio and 1 times invested capital turnover. If a business gets to a high ROIC through a high NOPAT margin, you should focus your analysis on differentiation. If the company’s high return comes from a high invested capital turnover ratio, emphasize analysis of cost leadership. Rare companies have high NOPAT margins and high invested capital turnover ratios. Generally, those companies have advantages reinforced by economies of scale.

🚀 My Content For This Week 🎬 YouTube: POWERFUL LESSON FROM LEGENDS​ ​ 📋 Twitter: Vivek Mashrani, CFA @MashraniVivek Radhakishan Damani is one of the most successful investors of all time. Learning from legends is key to long-term investing success Let’s examine 7 powerful lessons from RK Damani Thread… 4:46 PM • Feb 24, 2024 0 Retweets 2 Likes Read 3 replies ​

🎙️ 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​