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π Market Kya Lagta Hai
Nifty 50 πΌ +1.32%
Midcap 150 πΌ +1.86%
Smallcap 250 πΌ +1.42%
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Sectors in Focus
Major Corporate Developments This Week
- TEGA INDUSTRIES: Co board approves raising of funds up to βΉ4000 cr via issuance of equity shares and other securities
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Tega Industries, with Apollo Management Singapore, signs term sheet to acquire 100% of Molycop (EV: $1.48 bn).
- HUL: Slashes prices on Dove, Horlicks & Kissan Jam after GST cuts; new lower-MRP packs rolling out, old stock sale allowed till Dec 31
- DIAMOND POWER INFRASTRUCTURE: Co received letter of intent from Adani Energy Solutions for supply of 5403 km AL-59 Zebra conductor worth βΉ236.71 cr; project to be completed by June 30, 2026
- ADANI POWER: Co signs PSA with Bihar government for supply of 2400 MW of power; plans to invest USD 3B to build the new plant and its infrastructure under the DBOO model
- APOLLO HOSPITALS: Co to acquire 31% stake in AHLL for βΉ1,254 cr and invest βΉ5,730 cr in 100-bed proton therapy oncology centre in Gurugram
- DCX SYSTEMS LTD: Co signs MoU with Government of Tamil Nadu to establish a manufacturing facility for joint venture with Elta Systems; MoU signed at TN Rising Investment Conclave in Hosur; support for infrastructure and regulatory facilitation included
- INFOSYS: Co announces βΉ18,000 cr buyback of 10 crore equity shares at βΉ1,800 each
- SHRIRAM PISTONS: Coβs subsidiary SEL acquires 72.58% stake in SPR EMF Innovations
- BHARAT FORGE: Co Gradeone and Kalyani sign contract for artillery spare parts
- JBM AUTO: JBM Ecolife Mobility secures $100 million capital investment from International Financial Corporation to scale up deployment of e-buses
- GMDC: India engaged with Myanmar to procure rare-earth minerals; govt has asked PSUs, private cos to see prospects of sample collection from mines in northeast Myanmar
- GOLDIAM INTERNATIONAL LIMITED: Co receives export orders worth βΉ100 cr for lab-grown diamonds jewellery from international USA clients; orders to be fulfilled by Dec 31, 2025
- EICHER MOTORS: Royal Enfield passes full GST benefit to customers; cuts prices up to βΉ22,000 on 350cc range to drive accessibility and first-time buyers
- MAMATA MACHINERY: Co bags export order for 9-layer blown film plant
- RELIANCE INDUSTRIES: OpenAI in talks with Indian data centers for tie-ups for $500B Project Stargate
- E2E NETWORKS: OpenAI in talks with Indian data centers for tie-ups
- GLENMARK PHARMA: Co unit IGI receives USD 700M upfront payment from AbbVie for licensing pact for ISB 2001
- MOREPEN LAB: Morepen Medipath forms 50:50 joint venture with UAEβs Bimedical FZE to manufacture medical devices
- STRIDES PHARMA SCIENCE: Co-partners with Kenox to expand nasal spray portfolio for US market
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. Disciplineβsticking to a sound investment process, avoiding impulsive actions, and staying committed during market volatilityβoften proves to be a more important trait than brilliance. In essence, consistent behavior beats sporadic genius.
π 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 β Spotting Earnings Breakouts Before They Happen
Everyone loves an earnings surprise β 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 isnβt about buzzwords or management hype. Itβs about finding companies where a quiet shift in cost structure can lead to outsized profit growth β even with modest revenue gains.
π What is Operating Leverage β 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) donβt, the difference flows straight to the bottom line.
"Operating leverage is like coiled spring in a business. When it fires, it moves earnings faster than most expect."
β Prof. Sanjay Bakshi
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THE OPERATING LEVERAGE CHECKLIST β What to Look
To catch this early, ask these questions:
- Are fixed costs a large portion of total costs?β
This sets the stage for leverage. Think manufacturing, software, or infra companies.
- Is revenue steadily rising?β
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?β
A rising margin trend is a telltale sign that leverage is kicking in.
- Is recent capex behind us?β
If a company just finished a capacity expansion, it may be sitting on idle fixed assets about to become profit machines.
π Key Metrics That Signal Leverage Is Rising
π§ Final Thought: Profits Arenβt Linear β 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 β thatβs where the edge is.
ποΈ My Weekly Podcast For You
Keep Compounding...
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Vivek Mashrani, CFA
Founder, TechnoFunda Investing
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