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Sectors in Focus

Major Corporate Developments This Week

1. Hindustan Zinc: Company received a Letter of Intent from the Andhra Pradesh government for a composite license related to the Balepalyam Tungsten block, covering 308.30 hectares in Ananthapuram district.
2. NBCC: Company bags order worth ₹161.55 crore from Power Finance Corp.
3. Sportking: CRISIL has upgraded Long Term Rating of the Company from “CRISIL A/Positive” to “CRISIL A+/Stable”.
4. Infosys: Company announced its strategic collaboration with LogicMonitor, a leading SaaS-based hybrid observability platform powered by artificial intelligence.
5. Tata Steel: Company Inaugurates Phase Ii Expansion Of Kalinganagar Operations, Company Says Annual Capacity Of The State-Of-The-Art Facility In Odisha Jumps From 3 To 8 Million Tonnes With An Investment Of Rs 27,000 Crore.
6. TVS Motor: Company and OOR Cabs Join Hands to Deploy 500 Electric Three-Wheelers in Tamil Nadu.
7. Firstsource Solutions: Company partnered with Sanas to enable next-level customer conversation with AI. Sanas is a real-time speech understanding platform.
8. Adani Ports: Company is set to raise up to Rs 6,000 crore via NCDs on a private placement basis for capex/refinancing of existing debt and general corporate purposes.
9. Nibe bags order worth ₹150.6 Cr from an Israel-based defence technology company
10. Reliance Infra: Co promoted, Reliance Defence enters into strategic partnership with Rheinmetall AG, one of the world's largest defence manufacturers
11. Divi’s Labs: Co entered into long-term manufacturing and supply agreement with global pharma company for the international supply of advanced intermediates, worth rupees 650–750 Cr
12. Radico Khaitan: Co announces launch of two new premium whiskies: Trikāl Indian Single Malt and Morpheus Super Premium Whisky
13. Shilpa Medicare: Co unit enters into a strategic partnership with Orion Corporation || This partnership gives the exclusive right to distribute, market and sell co’s recombinant human albumin in Europe
14. Paras Defence: Co has executed a joint venture agreement (“JV Agreement”) with Heven Drones Ltd. (“HD”), Israel || The purpose of development and production of logistics and cargo drones for defence
15. GRSE: Co eyes up to ₹70,000 crore from upcoming Navy projects

TechnoFunda Investing Quote from Legends -

This quote by Robert Olstein highlights the paradox that constantly striving for short-term performance can hinder long-term success. When investors or professionals focus too much on delivering immediate results, they may take unnecessary risks, chase trends, or abandon disciplined strategies. True long-term performance often requires patience, consistency, and the ability to endure periods of underperformance without compromising on sound principles. The quote reminds us that sustainable success comes from thinking long-term, not from trying to win every day.

📚 Book I'm Reading This Week The Education of a Value Investor The Education of a Value Investor by Guy Spier is a deeply personal and insightful journey into the world of investing, self-discovery, and personal growth. Through the lens of his transition from a high-flying, ego-driven Wall Street environment to a more principled and thoughtful investing approach, Spier shares the lessons he learned from great investors like Warren Buffett and Mohnish Pabrai. Blending finance with philosophy, the book goes beyond numbers to explore the mindset, ethics, and habits required to succeed not just as an investor, but as a human being. List of All Books I have Shared →

TechnoFunda 101 - Power Capsules

Learn technical as well as fundamental concept in a simple way

Spotting Earnings Slowdown Before the Market Does – 4 Essential Checks for Smarter Investing

When it comes to equity investing, earnings are the lifeblood of stock prices. But the market doesn’t just react to reported numbers — it reacts to momentum, surprise, and sustainability.

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Let’s dive into four crucial signals to track before trusting the headlines 👇

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1. Watch for Decelerating Earnings Momentum

Just because a company is still growing earnings doesn’t mean the story is intact.

🚩 Red Flag: If EPS growth was consistently 25–30% per quarter, and now it’s down to 10%, that’s a clear slowdown — even if it’s still “positive.”

✅ Filter: Two consecutive quarters of EPS deceleration could mean weak demand, margin pressure, or pricing fatigue.

⏱ Action: Stay cautious and reevaluate your position if earnings momentum weakens while valuations stay elevated.

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2. Don’t Fall for “Nice-Looking” Headlines

“EPS up 20%! Revenue hits all-time high!” — these sound great, but here’s what to check underneath:

🧮 Ask:

• Were earnings strong compared to the same quarter last year (YoY), or just sequentially?
• Is EPS growing faster than net income? If yes, could be financial engineering.
• Has the share count increased (dilution)? Buybacks or stock-based comp could be masking weak real earnings growth.

🎯 Tip: Focus on clean YoY growth in Net Profit + stable or improving margins + no dilution = genuine earnings strength.

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3. Always Compare with Industry Peers

A great business in a weak sector may still underperform due to lack of broader tailwinds.

📊 Look at:

• Are competitors also reporting strong earnings?
• Is the entire industry seeing margin improvement, demand tailwinds, or order book growth?

📌 Example: Even the best auto component stock might stay rangebound if the entire auto sector is in a slowdown.

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4. Sector-Wide Moves Often Signal Breakout Opportunities

When multiple companies in a sector (like defense, fertilizers, or PSUs) show strong earnings simultaneously, it often precedes a major trend.

🧭 Why?

• Institutional flows start rotating into high-earning sectors
• Sector indices or thematic ETFs gain strength
• It validates that the earnings story is structural, not isolated

🚀 Action: Track sector-wide results during earnings season — the strongest themes often become clear within a few weeks.

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📌 Key Takeaways:

✅ Don’t just chase EPS growth — evaluate the momentum and quality behind it

✅ Read between the headlines: dilution, YoY comps, and margins matter

✅ Sector health > individual brilliance when it comes to short-term upside

✅ Align your portfolio with strong earnings clusters, not isolated performers

🚀 My Content For This Week 🎬 YouTube: Key Investing Mantras From William O’Neil | CANSLIM Strategy​ ​ 📋 Twitter: Vivek Mashrani, CFA @MashraniVivek Introducing the Flywheel of Wealth — a compounding system where each action powers the next. Here’s how we’ve built it into our TechnoFunda Investing 👇 A thread… 5:7 PM • May 24, 2025 0 Retweets 6 Likes Read 13 replies ​ 📷 Instagram: 10 reminders every investor needs​ 🔗 Linkedin: What most investors do when the market falls?​

🎙️ My Weekly Podcast For You

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Keep Compounding...

Vivek Mashrani, CFA Founder, TechnoFunda Investing

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