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Sectors in Focus

Major Corporate Developments This Week

1. Lupin: Company receives U.S. FDA approval for Raltegravir Tablets USP, 600 mg
2. Venus Pipes: Company has received a letter of intent from one of India’s leading integrated power plant equipment manufacturers for stainless steel seamless boiler tubes
3. Viceroy Hotels: Company signs a 30-year Operating Agreement with Marriott Hotels India Private Limited for a new property in Madhapur, Hyderabad.
4. Adani Power/ Adani Green: Adani Group and the Druk Green Power Corporation (DGPC) of Bhutan have signed a Memorandum of Understanding (MoU) to jointly develop 5,000 MW of hydropower projects in Bhutan.
5. Websol Energy System: Company has signed a solar module supply agreement with C.R.I. Pumps Private Limited.
6. Tata Motors: US-UK Trade Deal-Tariff on cars falls 27.5% to 10%
7. PayTM: CEO Vijay Shekhar Sharma, and his brother Ajay Shekhar Sharma, have settled with the markets regulator SEBI
8. Jindal Drilling: Company awarded a 3-year contract by ONGC for rig 'Jindal Explorer'.
9. Solex Energy: Company announced a major order win from KPI Green Energy for the supply of 310 MW solar modules. The deal is worth Rs 451.41 Crore.
10. Prestige Estates: The Prestige City, Indirapuram, achieves sales of over ₹3,000 crore across 1,200 units within a week of its launch.
11. Tejas Networks: Company Launched 1.2 Tbps single-wave coherent DWDM solution at Bharat Telecom 2025.
12. Tera Software: Advance Work Order recevied from BharatNet Project for Middle Mile Network - NER-II witha total order value of Rs.1901 Crores by ITI Ltd.
13. EFC: Group announces purchase of Quantum Towers, Pune - 1,22,000 Sq. Ft. Premium Commercial Office Space.
14. Indian Energy Exchange: Company achieved a monthly electricity traded volume of 10,584 MU, marking a 26% increase YoY.
15. Glenmark: Receives USFDA approval for blood cancer drug.
16. Paras: The company has entered into a MoU with Israel-based HevenDrones to expand both parties’ businesses in the Indian and global defence sectors.
17. G R Infraprojects: Company received an advance work order from BSNL for the Bharatnet project in Kerala. The contract price is Rs. 1257.29 Cr.

TechnoFunda Investing Quote from Legends -

This quote by Richard Feynman highlights a profound truth especially relevant in investing: our biggest blind spot is often ourselves. Investors can easily rationalize poor decisions, ignore inconvenient data, or cling to biased views—convincing themselves that they are right even when evidence suggests otherwise. Feynman's warning is a reminder to stay intellectually honest, question our assumptions, and remain open to being wrong. In markets, self-delusion can be costly, so cultivating humility and objectivity is not just wise—it’s essential for long-term success.

📚 Book I'm Reading This Week The Art of Execution The Art of Execution by Lee Freeman-Shor offers a rare and insightful look into how top investors actually behave after they make an investment—not just how they pick stocks. Based on real-world data from managing over $1 billion and tracking more than 30 professional fund managers, the book reveals that even the best investors are often wrong—but what separates the winners from the losers is how they react when things don’t go as planned. Freeman-Shor categorizes investors into distinct behavioral types and uncovers the mindset and execution strategies that lead to consistent success, making this book a practical guide to mastering the emotional and strategic side of investing. List of All Books I have Shared →

TechnoFunda 101 - Power Capsules

Learn technical as well as fundamental concept in a simple way

Buffett’s $1 Test – A Simple Measure of Capital Efficiency

When Warren Buffett evaluates businesses, one of his favorite mental models is what’s often called the “$1 Test.” It’s a simple question with powerful implications:

In other words, how efficiently is management converting profits that are reinvested into the business into long-term value for shareholders?

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Let’s break it down.

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🔍 What Is the $1 Test?

Not all profits are paid out as dividends. Companies often retain earnings to reinvest into the business—whether through new products, acquisitions, R&D, or expansion.

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Buffett’s test asks: If the company keeps your money (instead of returning it), is it doing a good job growing it?

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Here’s a basic way to measure it:

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Value Created = Cumulative Retained Earnings Over Time / Change in Market Capitalization

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• If the result is greater than 1 → The company is creating value.
• If it’s less than 1 → It’s likely destroying value or investing poorly.

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🧠 Why It Matters

✅ It cuts through surface-level earnings growth and asks: is management truly compounding shareholder wealth?

✅ It holds capital allocation decisions accountable—be it for M&A, capex, buybacks, or organic growth.

✅ It’s especially useful when comparing companies within the same industry.

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📊 A Simple Framework for Application

When reviewing a company:

1. Check retained earnings (in the balance sheet over multiple years).
2. Measure how much the market cap has increased over the same period.
3. Divide market cap growth by cumulative retained earnings.

A consistently high “value created per ₹1 retained” shows capital discipline and strong management execution.

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📌 Key Takeaway

Buffett’s $1 Test reminds us that profit is not enough. What a company does with that profit is what defines its long-term investment quality.

In short: Great businesses turn every retained rupee into more than a rupee of value. The rest just dilute your capital.

🚀 My Content For This Week 🎬 YouTube: Top Technofunda Sectors to Invest in 2025 | Technofunda Themes​ ​ 📋 Twitter: Vivek Mashrani, CFA @MashraniVivek Walk into any investor gathering and you’ll hear “MOAT” tossed around like it’s a golden ticket. But most are just castles made of hype. This week, let’s break down the real filters and key numbers that signals true moat — one that protects returns and compounds wealth over the 5:28 PM • May 10, 2025 3 Retweets 11 Likes Read 2 replies ​ 📷 Instagram: It’s all about building a system​ 🔗 Linkedin: It’s all about building a system ​

🎙️ My Weekly Podcast For You

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Keep Compounding...

Vivek Mashrani, CFA Founder, TechnoFunda Investing

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