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TechnoFunda Investing Newsletter
Weekly Wrap - Issue # 77
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Welcome to the Technofunda Investing community. Thank you for being Life Long Learner...!!!
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You can view all previous newsletters hereโ
๐ Market Kya Lagta Hai
Nifty 50 ๐ผ +1.73%
Midcap 150 ๐ผ +6.96%
Smallcap 250 ๐ผ +8.79%
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Sectors in Focus
Major Corporate Developments This Week
- HFCL: Company Bags Rs 157 Crore Order for BharatNet Phase III in West Bengal.
- Cochin Shipyard: Company and Drydocks World are collaborating to strengthen Indiaโs ship repair and offshore fabrication capabilities.
- Allied Blenders: Company to consider fund raising via equity shares or securities on May 15
- Piramal Pharma: Company announced a $90 Million investment to expand its US facilities in Lexington, KY and Riverview, MI.
- Bharat Electronics Ltd (BEL) received fresh orders worth โน572 crore post April 7, 2025. Orders include: Integrated Drone Detection and Interdiction System (ID-DIS), Software Defined Radio (SDR) and Data Communication Units (DCU) for attack gunsAI-based ship solutions, simulators, jammers, spares, and services.
- Zaggle Prepaid: Net Profit at Rs 31.12 Cr Vs Rs 19.15 Cr, Revenue at Rs 412.10 Cr Vs Rs 273.3 Cr (YoY)
- PG Electroplast: Net Profit at Rs 145 Cr Vs Rs 70 Cr, Revenue at Rs 1909 Cr Vs Rs 1076 Cr (YoY)
- TD Power Systems: Net Profit at Rs 53.02 Cr Vs Rs 29.02 Cr, Revenue at Rs 348.20 Cr Vs Rs 263.89 Cr (YoY)
- KIMS: Net Profit at Rs 102 Cr Vs Rs 65.5 Cr, Revenue at Rs 797 Cr Vs Rs 634 Cr (YoY).
- Care: Net Profit at Rs 42.7 Cr Vs Rs 24.1 Cr, Revenue at Rs 110 Cr Vs Rs 90 Cr (YoY).
- Grovy India: Company secures new premium residential project in Greater Kailash 1 (GK-1), New Delhi.
- Cellecor Gadgets Ltd: Company is launching a new range of fully automatic top-load washing machines in May 2025.
- ELECTROSTEEL CASTINGS: Co receives provisional compensation order from Ministry of Coal. Compensation estimated at 4.99 bn rupees.
- SUN PHARMA: Co announces FDA approval of next generation BLU-Uยฎ Blue Light Photodynamic Therapy Illuminator for actinic keratosis.
- LUMAX AUTO TECHNOLOGIES: Co approves acquisition of remaining 25% in IAC India. Equity value for 25% interest in IAC India is 2.21 bln rupees.
- NEWGEN SOFTWARE TECHNOLOGIES: Newgen granted patent in India for system and method for data compression. Filed 55 patents, out of which 25 have been granted in India and the US. New patent will boost Newgenโs intellectual property portfolio.
- BIOCON: Co unit Biocon Pharma has received approval for its ANDA for Rivaroxaban Tablets USP from the US FDA, for strengths of 2.5 mg, 10 mg, 15 mg and 20 mg.
TechnoFunda Investing Quote from Legends -
This quote by Benjamin Graham emphasizes that successful investing isn't about having superior intelligence or complex strategies, but rather about maintaining discipline and emotional control. In the stock market, even the smartest individuals can make poor decisions driven by fear, greed, or impatience. Disciplineโsticking to a sound investment process, avoiding impulsive actions, and staying committed during market volatilityโoften proves to be a more important trait than brilliance. In essence, consistent behavior beats sporadic genius.
๐ Book I'm Reading This Week
Buffett and Munger Unscripted by Alex W. Morris is a comprehensive compilation of over three decades of investment wisdom and business insights shared by Warren Buffett and Charlie Munger during Berkshire Hathaway's annual shareholder meetings. Following the 2018 release of archived meeting footage dating back to 1994, Morris meticulously reviewed more than 1,700 questions addressed by the duo, curating and organizing their most impactful responses into an accessible format. The book delves into topics such as intelligent capital allocation, effective management evaluation, market dynamics, and the significance of long-term investment horizons. By presenting these insights in their original context, Buffett and Munger Unscripted serves as an invaluable resource for investors and business enthusiasts seeking to understand the principles that have guided two of the most successful figures in finance.
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TechnoFunda 101 - Power Capsules
Learn technical as well as fundamental concept in a simple way
Rising Operating Leverage โ Spotting Earnings Breakouts Before They Happen
Everyone loves an earnings surprise โ but what if you could spot it before the market reacts?
This week, we break down one of the most underappreciated forces behind explosive earnings growth: Operating Leverage.
This isnโt about buzzwords or management hype. Itโs about finding companies where a quiet shift in cost structure can lead to outsized profit growth โ even with modest revenue gains.
๐ What is Operating Leverage โ Really?
Operating leverage means profits grow faster than revenue. Why? Because fixed costs stay the same as sales increase.
When revenue rises but core costs (like salaries, rent, plant depreciation) donโt, the difference flows straight to the bottom line.
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"Operating leverage is like coiled spring in a business. When it fires, it moves earnings faster than most expect."
โ Prof. Sanjay Bakshi
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THE OPERATING LEVERAGE CHECKLIST โ What to Look
To catch this early, ask these questions:
- Are fixed costs a large portion of total costs?โ
This sets the stage for leverage. Think manufacturing, software, or infra companies.
- Is revenue steadily rising?โ
Even low double-digit top-line growth can explode into high profit growth in a leveraged setup.
- Have gross or EBITDA margins improved with scale?โ
A rising margin trend is a telltale sign that leverage is kicking in.
- Is recent capex behind us?โ
If a company just finished a capacity expansion, it may be sitting on idle fixed assets about to become profit machines.
๐ Key Metrics That Signal Leverage Is Rising
๐ง Final Thought: Profits Arenโt Linear โ But Leverage Can Make Them Look Exponential
Most investors react after the earnings breakout. Smart investors track the leverage drivers before the breakout hits.
When revenue growth meets a fixed cost wall, profit curves bend upward. Learn to see that bend forming โ thatโs where the edge is.
๐๏ธ My Weekly Podcast For You
Keep Compounding...
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Vivek Mashrani, CFA
Founder, TechnoFunda Investing
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