Welcome to the Technofunda Investing community. Thank you for being Life Long Learner...!!!
Share this newsletter Via: LinkedIn, WhatsApp, Twitter
You can view all previous newsletters here
📈 Market Kya Lagta Hai
Nifty 50 🔻 -0.89%
Midcap 150 🔻 -1.92%
Smallcap 250🔻-2.97%
|
Sectors in Focus
Major Corporate Developments This Week
- Waaree Energies: Company begins operations at solar module plant in Gujarat.
- Cantabil Retail: Company Has Opened 7 New Showrooms/ Shops at Different Location in India during the Month of July 2025
- Neogen Chemicals: Company Incorporates Step-Down Subsidiary to Tap Lithium-Ion Battery Materials Market.
- Gujarat Gas: Company & Waree Energy Collaborates For Sustainable Energy Solutions and Reduce the Carbon Footprint.
- Ather Energy Ltd: Company launched the 450S with a 3.7 kWh battery pack, extending the IDC range to 161 km.
- NCC: Company received two orders worth Rs 792 crore in July.
- Indegene Limited: Net Profit Rs 116.40 cr vs Rs 87.70 cr, Revenue Rs 760.80 cr vs Rs 676.50 cr. (YoY)
- City Union Bank: Net Profit Rs 306 cr vs Rs 264 cr, NII Rs 625 cr vs Rs 555 cr. (YoY)
- KRN Heat Exchanger: Net Profit Rs 12.42 cr vs Rs 11.97 cr, Revenue Rs 115.28 cr vs Rs 95.78 cr. (YoY)
- Jio Financial Services: Company approved raising funds through issuance of up to 50 crore warrants at Rs 316.50 per warrant.
- Navin Fluorine: Net Profit Rs 117.16 cr vs Rs 51.20 cr, Revenue Rs 725.40 cr vs Rs 523.68 cr. (YoY)
- Tata Steel: Net Profit Rs 2078 cr vs Rs 1300.8 cr, Revenue Rs 53178 cr vs Rs 56218 cr. (YoY)
- Kinetic Engineering: Company Reignites India’s EV Market with the All-Electric Revival of Iconic DX Scooter; Eyes Scalable EV Expansion Backed by Rs 249 Cr Commitment.
- Omaxe Ltd: Company Group Receives Rs 500 Crore Investment from Oaktree for Large Projects to Boost Growth and Execution.
- Punjab Chemicals: Company announced signing 3 MOUs with overseas customers for high-value agrochemical products & intermediates.
- Vatech Wabag: Company secured Rs 380 cr order for water reuse project in Bengaluru.
- Asian Energy Services: Company secured contract Rs 865 crore from Vedanta.
- Brigade Enterprises: Company Introduces Brigade Avalon, A New High-end Living Project in Whitefield with Expected Revenue Over Rs 1000 Crore.
- Grindwell Norton: Company Buys Land worth Rs 180 Million In Gujarat To Enhance Future Business Operations.
- Zydus Lifesciences: Company has received tentative approval from the U.S. Food and Drug Administration for its generic version of Ibrutinib tablets.
- BEL: Company secures Rs 1,640 Cr Defence Deal for Advanced Air Surveillance Radars.
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.
|
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...
|
|
Vivek Mashrani, CFA
Founder, TechnoFunda Investing
|
|
|
You Can Share This Newsletter...!!!
|
|
|
Follow all my content on my social media handles below
|
Disclaimer:
- The content provided on this page by the publisher is not guaranteed to be accurate or comprehensive. All opinions and statements expressed herein are solely those of the author.
- The information found on this newsletter should not be interpreted as investment advice, nor does it express any viewpoint on the future trading prices of any company's securities. The opinions and information shared here should not be taken as specific guidance for making investment decisions.
- The content, including opinions and expressions, present on this newsletter, is not a direct or indirect offer or solicitation to buy or sell securities or financial instruments mentioned. The securities quoted are for illustration only and are not recommendatory.
- Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
- By accessing the site or affiliated social media accounts, you signify your agreement to this disclaimer and the terms of use.
- Neither the publisher nor its affiliates assume liability for any direct or consequential losses arising directly or indirectly from the use of the information provided in this content.
