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Sectors in Focus

Major Corporate Developments This Week

1. BHEL: Company gets Rs 6,500 crore order for 6 thermal units of 800 MW from Adani Power.
2. Waaree Energies: Company has received an order for 540MW solar modules from a US-based developer and owner-operator of utility-scale solar and energy storage projects.
3. Zen Technologies: Company has announced the grant of its 54th Indian patent for a laser-based combat training innovation.
4. Interarch: Company gets Rs 77 Cr order from Amara Raja.
5. Hind Rectifiers: Company secured an order from Indian Railways. The order is valued at approximately Rs 101 crores.
6. ITD Cementation: Company bags Rs 580-crore contract in Abu Dhabi.
7. Titagarh rail: Company wins order worth rupees 430.53 cr from Maharashtra metro rail for 12 additional Pune metro trainsets, to be executed within 30 months
8. Amber: Company is entering into new segments: Power Electronics and Renewable Energy.
9. Alembic Pharmaceuticals: Company gets US FDA approval for Doxorubicin Hydrochloride Injection
10. Western Carriers: Company announced the receipt of a Rs. 230 crore work order from Jindal Stainless Limited.
11. Godrej Prop: Company acquires 43 acres land in Panipat with revenue potential at ₹1,250 cr.
12. Vesuvius India: Company’s Visakhapatnam plant commenced commercial operations.
13. Aavas Financiers: Company announced that Aquilo House Pte. Limited has become its new promoter.
14. Balaji Amines: Company commenced commercial production of Isopropylamine at its Osmanabad unit.
15. Timken India: Commenced commercial production at its new manufacturing facility in Bharuch.
16. Bharat Electronics: Company gets additional order worth ₹528 crore since June 20.
17. NCC: Company bags orders worth ₹1,690.51 crore in June 2025.
18. Sona Comstar: Company is considering manufacturing of rare earth magnets in the country.
19. Kalpataru Projects: Company secures new orders worth ₹ 989 crores.
20. ITI: Company signs agreement with BSNL for NER-II Package-15 of BharatNet project worth ₹1,901 crore
21. Gabriel: Company to consolidate Anand Group’s auto business via share swap.
22. CG Power: Company plans to raise ₹3,000 crore via QIP after highest order win.
23. Bharat Forge: Board approves defence business transfer to Kalyani Strategic Systems arm via Optionally Convertible Redeemable Preference Shares for ₹500 crore
24. Torrent Pharma: Expects ₹19,500 crore JB Pharma deal to complete in 15-18 months.

TechnoFunda Investing Quote from Legends -

This quote by Mark Minervini highlights the critical role of market psychology and demand in driving stock prices. While solid fundamental analysis may tell you a company is undervalued or poised for growth, it's ultimately investor perception—and the resulting buying interest—that determines price movement. Without strong institutional demand or widespread bullish sentiment, even fundamentally strong stocks can remain stagnant. Minervini’s insight emphasizes the importance of aligning technical setups with fundamentals to capitalize on both value and market momentum.

📚 Book I'm Reading This Week Secrets for Profiting in Bull and Bear Markets Secrets for Profiting in Bull and Bear Markets by Stan Weinstein is a classic investment guide that introduces a powerful, stage-based technical analysis framework to help traders and investors identify optimal entry and exit points. First published in 1988, the book simplifies market analysis by breaking down every stock into four distinct phases—accumulation, uptrend, distribution, and downtrend—enabling readers to ride big trends and avoid major losses. With practical charting techniques, clear trading rules, and timeless principles, Weinstein’s approach has remained relevant for decades, making it a must-read for anyone serious about navigating both bull and bear markets with confidence. List of All Books I have Shared →

TechnoFunda 101 - Power Capsules

Learn technical as well as fundamental concept in a simple way

Why Earnings Growth Is the Most Reliable Engine of Long-Term Stock Returns

When it comes to long-term investing, much of the noise surrounds valuations, macros and sentiment. The real foundation of stock returns lies in something far simpler — sustainable earnings growth.

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Let’s break down why earnings growth deserves your attention more than ever.

⚙️ The Two Drivers of Stock Returns:

Every stock price ultimately reflects two forces:

1. Growth in Earnings (Profitability)
2. Change in Valuation Multiple (P/E Re-rating or De-rating)

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While both matter, one is significantly more predictable than the other.

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Earnings growth can be estimated by analyzing a business model, industry structure, capital allocation, and management execution. But P/E re-ratings are often driven by market mood swings, macro noise, and liquidity conditions — far harder to forecast or control.

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🔍 Earnings Growth: What Truly Matters

Not all growth is created equal. Here’s what differentiates high-quality earnings growth:

1. Predictability – Does the business maintain growth even in down cycles?
2. Longevity – Can the company grow earnings for 5–10 years, not just 2?
3. Quality – Is growth backed by real operating drivers like volume expansion, market share gains, and improving return ratios?
4. Conversion – Are profits translating into cash flows?

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💡 Pro tip: Focus on businesses that can double their earnings in 3–5 years — and ideally at reasonable valuations.

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📉 Why Earnings Growth Acts as a Safety Net

Let’s say you slightly overpay for a fast-growing business. If it delivers on earnings, you still stand to gain handsomely — even if the P/E contracts mildly.

For example:

• A business doubling profits in 4 years with a slight P/E drop can still give 80–90% returns.
• But a slow grower with a similar P/E de-rating may see flat or even negative returns.

📌 Earnings growth gives you margin of safety — especially when valuations are fair.

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🧠 The Right Way to Think About Valuation

Valuations matter, but they shouldn’t be the obsession.

• The best-case: Fast earnings growth + reasonable valuation = double engine of wealth creation.
• The worst-case: Slow earnings + high valuation = double trouble.

The goal isn’t to buy the cheapest stock — it’s to buy the fastest-growing, reasonably priced business with staying power.

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🧮 What Does This Mean for You?

As a retail investor, here’s a 3-step earnings-first framework:

✅ Step 1: Filter companies with consistent 20–25% earnings CAGR over the last 3–5 years.

✅ Step 2: Study the “why” behind growth — pricing power? capital efficiency? scale?

✅ Step 3: Check if the current valuation (P/E) is fair based on past averages and peers.

🧘‍♂️ Patience Pays: Let Compounding Do the Work

Don’t sell a stock just because it doubled — if earnings are still compounding and valuation hasn’t become outrageous, stay invested. You don’t exit a great business just because it performed well temporarily.

📌 Key Takeaway:

Markets may fluctuate, and macros may confuse. But consistent earnings growth is your north star. It reduces downside risk, increases upside potential, and simplifies your decision-making process.

Focus on this one variable, and you’ll already be ahead of most.

🚀 My Content For This Week 🎬 YouTube: How to find Winning Stocks | PEAD Strategy Deep Dive​ ​ 📋 Twitter: Vivek Mashrani, CFA @MashraniVivek Everyone wants the next multibagger stock! But almost no one wants to follow the system to find it again and again. Here’s why chasing hot tips keeps you stuck — and how a clear, repeatable processis what truly drives wealth… A thread 🧵🧵 5:34 PM • Jul 5, 2025 3 Retweets 13 Likes Read 8 replies ​ 📷 Instagram: Stop depending on tips. Build your own strategy.​ 🔗 Linkedin: Markets Reward Clarity and Consistency, Not Hyperactivity​

🎙️ My Weekly Podcast For You

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Keep Compounding...

Vivek Mashrani, CFA Founder, TechnoFunda Investing

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