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Sectors in Focus

Major Corporate Developments This Week

1. Strides Pharma Science announced that its stepdown wholly owned subsidiary, Strides Pharma Global Pte. Ltd, Singapore, has received approval for Sevelamer Carbonate Tablets, 800 mg, from the United States Food & Drug Administration (USFDA).
2. Piramal Enterprises to merge with private housing finance arm.
3. RVNL: Company gets order worth ₹167.3 cr from South Eastern Railway.
4. Bajaj Consumer: Company to buy back shares at ₹290/sh; buyback up to ₹166 cr total size.
5. Dixon: Company signs agreement with Nokia for development & manufacturing of telecom products.
6. Macro tech Developers: Company will launch in this fiscal 17 housing projects, having a revenue potential of Rs 12,000 crore.
7. Patel Eng: Company and JV partner emerge as lowest bidder for irrigation project worth Rs 343 crore.
8. Olectra Green: Company has achieved a milestone by surpassing 10,000 units in its e-bus order book.
9. Orient Electric: Company starts commercial production from greenfield manufacturing plant at Hyderabad, Telangana.
10. GHCL: Company approved Greenfield project for soda ash annual production capacity of 5.5M ton in Gujarat for 40B rupees.
11. Tata Elxsi: Company partners w/Arm to offer solutions for ARM processors.
12. Tata Motors: Company’s JLR April UK sales up 19% at 5,627 units Vs 4,722 units YoY.
13. Jindal Staliness: Company supplies special alloy steel sheets in DRDO’s SMART system for navy.
14. NBCC: Company gets work orders worth ₹400 crore in Chhattisgarh & Kerala.
15. TVS Supply Chain: Company gets business deal for Eicher’s bus facility in Baggad.
16. Happiest Minds to acquire US-based Aureus Tech Systems for $8.5 million.

TechnoFunda Investing Quote from Legends -

Jim Simons emphasizes the role of meticulous analysis and discipline over luck in achieving sustained success in investing. Simons, renowned for his quantitative approach to investing, suggests that while luck can sometimes contribute to short-term gains, it is not a reliable foundation for enduring prosperity in the financial markets. Instead, consistent success in investing requires a disciplined approach that includes rigorous data analysis, methodical strategies, and steadfast adherence to proven investment principles. This approach minimizes reliance on chance and enhances the predictability and stability of investment returns over the long term.

📚 Book I'm Reading This Week ​​​​​Deep Work: Rules for Focused Success in a Distracted World Cal Newport discusses in his book, Deep Work: Rules For Focused Success In A Distracted World, about how professionals of today have started valuing quantity over quality; and how this has turned young professionals of today into puppets who try to indulge in extensive multitasking, dealing with multiple emails and projects. This prevents them from doing 'deep work'; which is focused work free from all other distractions. This also means that the professionals of today should sort out their priorities. Newport uses principles of psychology and neuroscience to enhance his points. He elaborates how to improve a person's cognitive abilities and how employers should encourage workers to not take shortcuts for completing projects. He claims that the best way to break away from the corporate race is to take a break from technology and social media and use some alone-time to rewind and introspect. Newport enforces the beliefs of a non-technophile to deliver work that is productive and efficiently delivered. List of All Books I have Shared →

TechnoFunda 101 - Power Capsules

Learn technical as well as fundamental concept in a simple way

Scuttlebutt Investing by Philip Fisher

Philip Fisher was a pioneer in growth investing, and one of his standout techniques is the Scuttlebutt method. This approach involves collecting insights from various stakeholders associated with a company, including its customers, suppliers, competitors, and employees. Rather than relying solely on financial statements or analyst reports, Fisher advocated for gathering a wide range of information directly from the market.

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Key Components of the Scuttlebutt Method:

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1. Customer Insights: Understanding customer satisfaction and demand trends provides insights into the company’s market position and potential for growth.
2. Supplier Information: Suppliers can offer perspectives on a company’s reliability and its standing relative to competitors in the industry.
3. Competitor Evaluations: Competitors often provide the most candid assessment of a company’s strengths and weaknesses.
4. Employee Insights: Discussions with current and former employees can uncover the company’s moral, operational efficiency, and innovation capabilities.

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By synthesizing information from these varied sources, investors using the Scuttlebutt method can gain a well-rounded view of the company's operations and market standing, thus making more informed investment decisions.

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Detailed Example of Scuttlebutt Investing: Let’s consider a hypothetical application of the Scuttlebutt method to a company, EcoDrive Motors, which is an electric vehicle (EV) manufacturer:

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1. Customer Feedback: An investor might start by speaking to customers who have purchased EcoDrive vehicles. The focus would be on the cars’ performance, reliability, after-sales service, and overall customer satisfaction. High satisfaction levels suggest good growth potential, whereas widespread complaints could be a red flag.
2. Supplier Discussions: Next, the investor talks to suppliers who provide battery technology and other critical components to EcoDrive. This would help assess whether EcoDrive is seen as a priority by its suppliers, its payment reliability, and its capability in managing the supply chain efficiently.
3. Competitor Analysis: Speaking with competitors might reveal how they view EcoDrive’s market entry. Are competitors feeling the pressure from EcoDrive’s strategies? How do they compare EcoDrive’s products with their own in terms of technology, price, and performance?
4. Employee Insights: By conversing with current and former employees, the investor gains insight into the company culture, leadership effectiveness, innovation pace, and operational efficiency. High turnover rates, for instance, might indicate internal problems that could affect the company’s long-term performance.

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Benefits of Scuttlebutt Investing: This method allows investors to:

• Identify potential red flags that are not apparent in financial statements.
• Get ahead of market trends by understanding in-depth narratives behind the numbers.
• Make more confident investment decisions by corroborating data from financial analysis with qualitative insights.

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Philip Fisher’s Scuttlebutt method emphasizes that deep, qualitative analysis can contribute significantly to understanding a company's strategic position and growth potential. By deploying this method, investors can uncover nuanced details that are crucial for long-term investment success

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🚀 My Content For This Week 🎬 YouTube: Fundamental Analysis Using Excel Screener​ ​ ​ 📋 Twitter: Vivek Mashrani, CFA @MashraniVivek Ever felt overwhelmed in the stock market? Imagine it like a supermarket, with aisles of different stocks. Peter Lynch, a famous investor, sorted them into 6 categories Let's walk through this investment market & learn Peter Lynch's easy ways to understand stocks A thread… 6:47 PM • May 8, 2024 9 Retweets 46 Likes Read 3 replies ​ 📲 Instagram:

🎙️ My Weekly Podcast For You

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Keep Compounding...

Vivek Mashrani, CFA Founder, TechnoFunda Investing

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