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Sectors in Focus

Major Corporate Developments This Week

1. Larsen & Toubro (L&T)– Secured multiple power transmission and distribution EPC contracts valued at ₹10,000–15,000 croreacross India, Saudi Arabia and the UAE. The projects include a 380 kV transmission and substation project in Saudi Arabia, 132/11 kV substations in the UAE, and a transmission system in Visakhapatnam, India.
2. KEC International: Announced two sets of new orders totalling approximately ₹2,044 croreduring the week. These include ₹1,030 crore of orders across transmission and distribution, renewables, and cables and conductors, as well as ₹1,014 crore of domestic T&D orders featuring its first 765 kV transmission-line project for power evacuation from a pumped-storage plant.
3. NCC: Received a Letter of Acceptance worth ₹1,286.03 crorefrom Hyderabad Growth Corridor Limited for construction of Radial Road-2 in Telangana, connecting the Outer Ring Road near Budwel to Nacharam on NH-167N.
4. SEPC: Signed a ₹854.57 crore contract with SAILfor work at the IISCO Steel Plant in Burnpur, West Bengal. The contract takes SEPC's consolidated order book above ₹10,000 crore. Separately, the Madras High Court lifted the attachment on approximately ₹154 crore of trade receivables following dispute settlement.
5. Pace Digitek: Received a Letter of Intent worth approximately ₹179.4 crorefrom BSES Rajdhani Power for a 57.5 MW/115 MWh standalone battery energy storage system in Delhi. The project will operate under a 12-year build-own-operate-transfer model and is scheduled for execution within seven months.
6. BEML: Secured an export and maintenance order worth approximately ₹75.58 crorefor high-mobility military vehicles for customers in Southeast Asia. The order covers HMV 12×12 and HMV 8×8 vehicles, extending BEML's defence-related export business.
7. Silver Touch Technologies: Received a ₹35.63 crore order from ITI Limitedfor supplying 80 high-performance enterprise servers for an Indian Army project. A further eight-year annual maintenance contract worth ₹14.04 crore may follow the initial three-year warranty, taking the potential lifecycle value to approximately ₹49.67 crore.
8. Marico: Acquired an additional 24.09% stake in Satiya Nutraceuticals for ₹1,012.03 crore, taking its holding in the parent of plant-based wellness brand Plix from 60% to 84.09%. The remaining 14.09% is scheduled for acquisition in July 2027, with base consideration of up to ₹592 crore, subject to the transaction terms.
9. Juniper Hotels: Entered into a binding MoU with Imagicaaworld Entertainment to acquire the operating Novotel Imagicaa hotel in Khopoli, Maharashtra, for ₹248 crore. The transaction would add an operating hotel asset to Juniper's hospitality portfolio.
10. Mphasis: Entered into a £35.4 million agreement with Social Security Scotlandto manage and maintain its benefits-management platform, which supports services for approximately two million citizens.
11. Marsons: Announced plans to form a joint venture with US-based Cleanhill Partners to expand transformer distribution, servicing and manufacturing operations across the United States and Canada. Financial terms were not disclosed.
12. Adani Ports and Special Economic Zone: Incorporated Paradip Mahanadi Terminal as a wholly owned subsidiary to develop and operate two dry-bulk berths at Paradip Port, Odisha. The berths are expected to add approximately 18 million tonnes of annual capacityto the port.
13. JSW Cement: Commissioned an additional 1 MTPA cement-grinding unit at Nagaur, Rajasthan, increasing total cement-grinding capacity to 25.10 MTPA. Total clinker manufacturing capacity, including its joint venture, stands at 9.74 MTPA.
14. Godrej Consumer Products: Its Indonesian subsidiary inaugurated the first phase of a new manufacturing facility in the Kendal Special Economic Zone. The company has invested approximately ₹250 croreto strengthen its manufacturing footprint in Indonesia.
15. Mahindra Lifespace Developers: Launched Mahindra Rivenza, a residential project in Baner Annex, Pune, with an estimated gross development value of approximately ₹3,500 crore. This represents potential project sales value, not an order or investment amount.
16. Zydus Lifesciences: Partnered with MSN Laboratories to launch generic riociguat tablets in the United States in strengths ranging from 0.5 mg to 2.5 mg. The companies are the first to launch a generic version of Adempas in the US; MSN developed and manufactures the product.
17. Lupin: Received US FDA approval for its abbreviated new drug application for Phytonadione Injectable Emulsion USP, 1 mg/0.5 mL, in a single-dose prefilled syringe. The reference drug had estimated annual US sales of approximately US$52.3 million, according to IQVIA data for August 2026.
18. Ola Electric Mobility: Approved a rights issue of approximately ₹999.73 crore, comprising 37.02 crore partly paid-up equity shares priced at ₹27 each. The proposed use of proceeds includes ₹350 crore for debt repayment or prepayment, ₹400 crore for organic growth and the balance for general corporate purposes. The rights issue is scheduled to open on October 22 and close on October 30, 2026.
19. BGR Energy Systems: Entered into a Master Restructuring Agreement with National Asset Reconstruction Company, acting through India Debt Resolution Company, to restructure outstanding debt of approximately ₹3,736 crore. The company also disclosed a subsequent update on insolvency proceedings during the week, so the agreement should not be treated as confirmation that insolvency-related matters have been resolved.
20. Dr. Reddy's Laboratories: The US FDA issued a Form 483 containing two observationsfollowing a pre-approval inspection at the company's FTO-11 manufacturing facility in Andhra Pradesh, conducted from October 5 to October 7. A Form 483 records inspection observations; it is not, by itself, a warning letter or an import ban.
21. MRF: The Deputy Commissioner of State Tax in Kerala issued a rectification order reducing a tax demand related to FY2014–15 export clearances and declaration forms from ₹91.53 crore to ₹36.19 crore, a reduction of ₹55.34 crore

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.

The Compounding Life Newsletter - by Vivek Mashrani

📚 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 →

TechnoFunda 101 - Power Capsules

Learn technical as well as fundamental concept in a simple way

The Earnings You Don't See

Why great businesses build capabilities years before they build profits.

Every earnings season, investors ask the same questions.

How much did revenue grow?

Did margins improve?

Was the guidance positive?

Will earnings beat expectations next quarter?

These are important questions.

But they all suffer from the same problem.

They focus on what has already happened.

The biggest wealth creators, however, are often built long before their earnings begin to reflect it.

The market sees revenue.

Exceptional investors try to understand capability.

The Bamboo Tree Principle

There is an interesting story about the Chinese Bamboo Tree.

For years after planting the seed, almost nothing appears above the ground.

It is watered.

It is fertilized.

It is cared for.

Yet visible growth is almost non-existent.

Many would assume nothing is happening.

But beneath the surface, the plant is building an extensive root system capable of supporting rapid future growth.

Then, over a remarkably short period, it shoots up dramatically.

Did it grow in a few months?

Or was it quietly growing for years?

Businesses often follow the same pattern.

Businesses Invest Before They Earn

Most investors assume revenue comes first.

Reality is exactly the opposite.

A company first invests in:

• Research & Development
• Manufacturing capability
• Engineering talent
• Customer relationships
• Certifications
• Distribution
• Technology
• Brand

Only after years of investment do these capabilities begin producing meaningful revenue.

This sequence is remarkably consistent across industries.

Investment

↓

Capability

↓

Customer Trust

↓

Revenue

↓

Operating Leverage

↓

Earnings Growth

By the time the earnings become obvious, the capability has usually existed for years.

Why the Market Often Gets It Wrong

Financial statements don't measure capability very well.

When a company hires engineers, incurs R&D expenses, builds a new factory, or spends years obtaining customer approvals, current profits often decline.

The market frequently interprets this as weaker performance.

But sometimes, those lower reported profits are actually investments in the company's future earnings power.

This is why many great businesses look expensive after they become successful—but often look ordinary while they are building the foundations of future growth.

A Lesson from the Aerospace Industry

Consider an aerospace supplier.

Winning an order isn't as simple as quoting the lowest price.

Before supplying a single component, a company may spend several years developing manufacturing capability, achieving global certifications, passing stringent quality audits, and completing customer qualification processes.

During this period:

• Revenue contribution is minimal.
• Return on investment appears poor.
• Margins remain under pressure.
• Investors lose patience.

Yet every passing quarter is strengthening the company's competitive position.

Once approvals are completed, commercial production can continue for years, creating a long runway for earnings growth.

The market often celebrates the first large order.

Professional investors pay attention much earlier—when the capability is being built.

Capability Creates Competitive Advantage

Almost every durable competitive advantage begins as an investment that appears uneconomic.

Asian Paints spent decades building its distribution network.

Titan invested heavily in trust and branding before jewellery became its largest business.

Divi's Laboratories built complex chemistry capabilities long before becoming one of the world's preferred manufacturing partners.

None of these investments created immediate profits.

They created capabilities.

And capabilities eventually create earnings.

What Should Investors Look For?

Instead of focusing only on quarterly earnings, ask different questions.

• Is management investing in capabilities that competitors cannot easily replicate?
• Has the company built a new manufacturing facility before demand has fully materialised?
• Is R&D spending increasing?
• Are new customer approvals or certifications being discussed?
• Is management hiring specialised talent?
• Is the company entering technically demanding adjacencies?

These are often the earliest signs that tomorrow's earnings engine is being built today.

The Technofunda Takeaway

One of the biggest differences between investing and speculation is the ability to distinguish current performance from future earning power.

Quarterly numbers tell us what a business has already achieved.

Capabilities tell us what a business may become.

Learning to recognise capability before it becomes visible in earnings is one of the most valuable pattern recognition skills an investor can develop.

Because the market eventually rewards earnings.

But exceptional investors learn to recognise the businesses that are quietly building those earnings years in advance.

Exceptional businesses rarely wait for demand before investing. They build technology, capacity, customer relationships, and execution capabilities years in advance. While these investments may temporarily suppress profitability, they often create the foundation for sustained earnings compounding once demand catches up.

The market rewards earnings. Great investors recognize capabilities before those earnings arrive.

🚀 My Content For This Week ​🎬 NSE's New FREE Screener - Is Screener.in Finished?​ ​ 📋 Twitter: Vivek Mashrani, CFA @MashraniVivek 🚨🚨 Several red flags spotted While many finfluencers are pushing IPO of Peshwa Wheat SME IPO...we find many accounting issues and red flags.. Retweet so that retail investors are not trapped. Peshwa Wheat reports ₹12 cr of profit on ₹171.5 cr of sales in FY25. The cash 5:40 AM • Sep 26, 2026 53 Retweets 154 Likes Read 13 replies ​ 📷 Instagram: You don’t always need a meeting with management to understand a company.​ 🔗 Linkedin: Your family’s financial future shouldn’t depend on luck.​

🎙️ My Weekly Podcast For You

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Keep Compounding...

Vivek Mashrani, CFA Founder, TechnoFunda Investing

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