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📈 Market Kya Lagta Hai
Nifty 50 🔻 -1.50%
Midcap 150 🔻 -1.18%
Smallcap 250🔻-0.44%
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Sectors in Focus
Major Corporate Developments This Week
- ITD Cementation: Company Secured a New Contract worth Rs 8.93 billion.
- Protean eGov: Company has been awarded a significant work order from Bima Sugam India Federation valued at approximately Rs 100 crore.
- NIBE: Company Secures Technology Transfer License from DRDO for Modular Bridging System
- Jindal Saw: Company to Enter Jv Agreement With Buhur In Ksa, To Set Up 300,000 Tpa Seamless Pipe Facility In UAE
- TIL Limited: Company Announces Dedicated Defence Strategic Business Unit to Accelerate Indigenous Military Equipment Manufacturing.
- Jupiter Wagons: Subsidiary Jupiter Electric Mobility (JEM), inaugurated its first showroom in Bengaluru for its e-LCV, JEM TEZ.
- Jana Small Finance Bank: Submits application at Reserve Bank of India seeking approval for voluntary transition from Small Finance Bank to Universal Bank.
- PNC Infratech: Company bags Rs 239.94 crore flyover project in Rajasthan from PWD.
- Tata Power: Company announced that its solar manufacturing arm, TP Solar, has crossed 4 GW of cumulative solar module output at its facility in Tamil Nadu
- Zydus Life: Company gets establishment inspection report (EIR) from US FDA for Ankleshwar-based API manufacturing facility. EIR indicates closure of inspection.
- Sterlite Technologies: Company signs agreement with Bharat Sanchar Nigam Limited (BSNL) for Rs 2,631.14 cr telecom project under BharatNet for Jammu & Kashmir and Ladakh Telecom Circles.
- SEPC: Company Receives Loa from Parmeshi Urja Ltd, Kolkata, For the Engineering, Procurement, and Construction (EPC) Of a 133 Mw Ac Solar Power Project.
- Railtel Corporation: Company Receives Work Order worth Rs 119.5 Million from South Eastern Coalfields Ltd.
- FMCG Stocks: Government reduces Basic Custom duty (BCD) on major imported crude edible oils from 20% to 10%.
- Waaree Energies: Company announced that it has signed a Power Purchase Agreement (PPA) with Rewa Ultra Mega Solar Limited.
- Adani Group: Adani Group announces India's biggest private capex plan, investing $100 billion over the next six years.
- Oil upstream companies: Brent Crude crosses $70 mark as geopolitical tensions rise, US pulls embassy staff from Middle East
- Kellton: Board meet on June 14 to consider stock split and raising of funds via private placement, preferential issue, or qualified institutions placement by issuing equity shares
- Lemon Tree: Company signs license agreement for 72-room ‘lemon tree premier’ in Madhya Pradesh, to be managed by unit carnation hotels
- City Union Bank: To raise funds up to ₹500 crore via QIP route
TechnoFunda Investing Quote from Legends -
This quote by Thomas Russo emphasizes that true long-term safety in investing doesn’t come merely from buying a stock at a low price, but from owning businesses with durable competitive advantages—brands, networks, cost advantages, or customer loyalty—that can sustain strong performance over decades. While price offers a short-term cushion, it's the enduring quality and resilience of a business that protects and grows investor capital over time. This mindset lies at the heart of quality investing: focusing on businesses that can keep winning, year after year.
📚 Book I'm Reading This Week
Beyond Diversification: What Every Investor Needs to Know About Asset Allocation by Sébastien Page offers a modern, research-driven perspective on portfolio construction, going beyond traditional diversification techniques. The book challenges outdated models like the 60/40 portfolio and introduces advanced methods that incorporate factors such as downside risk, tail events, and correlations under stress. With practical insights drawn from institutional investing and quantitative analysis, it equips investors with tools to build more resilient and effective portfolios in an increasingly complex financial world.
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TechnoFunda 101 - Power Capsules
Learn technical as well as fundamental concept in a simple way
Why Quality Beats Cheap — Don’t Be Lured by Low Prices Alone
A stock with a single-digit P/E or a huge “50% off from all-time highs” sticker often feels like a steal. But here’s the truth: cheap doesn’t always mean valuable.
Over time, investing in high-quality businesses — even at fair or slightly premium prices — has consistently beaten chasing low-quality companies just because they look “cheap.”
Let’s explore why quality matters more than price tags.
🧠 Why “Low Price” Can Be an Expensive Mistake
Many investors fall into the trap of confusing low valuation with opportunity. But low multiples often signal deeper problems — poor capital allocation, declining revenues, or outdated business models.
Ask yourself: Why is this stock cheap?
If the answer is “because no one wants it,” there’s probably a reason.
A low price may just be the market’s way of warning you.
🏗️ What Makes a Business “High Quality”?
A quality company is one that:
- Generates strong and consistent free cash flow
- Has high return on capital employed (ROCE)
- Holds pricing power in its industry
- Is led by competent, shareholder-friendly management
- Reinvests profits efficiently to fuel growth
These aren’t buzzwords — they’re characteristics of businesses that survive storms and compound wealth over time.
📈 Cheap Can Go Cheaper. Quality Compounds.
When you buy a low-quality stock, you’re betting on a turnaround — and those rarely play out cleanly.
But when you buy a high-quality business, you’re buying into a machine that:
- Grows revenues steadily
- Manages costs and expands margins
- Has loyal customers and defendable moats
Yes, it may not look “cheap” on a screen. But with time, quality businesses prove their worth — and the compounding effect becomes unbeatable.
💡 Pay Up — But Only with a Plan
“Paying up” doesn’t mean ignoring valuation altogether. It means you’re willing to pay a fair price for excellence — not a discount for mediocrity.
Use sensible valuation tools like:
- EV/EBITDA for capital-heavy firms
- PEG ratio for growth names
- Free Cash Flow yield for capital-light businesses
Don’t overpay out of fear of missing out. But don’t ignore great businesses just because they trade above “value stock” multiples either.
✅ Quick Checklist: Quality Over Cheap
📌 Key Takeaway:
Low prices tempt the eye — but great businesses reward the patient.
Investors who choose quality may pay a premium upfront… but they sleep better, compound longer, and ultimately win bigger.
💬 Final Thought:
“Would you rather own a rusted old hatchback at a great price — or a well-engineered vehicle that gets better with age?”
Your portfolio deserves the latter.
🎙️ My Weekly Podcast For You
Keep Compounding...
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Vivek Mashrani, CFA
Founder, TechnoFunda Investing
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