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Sectors in Focus

Major Corporate Developments This Week

1. Ramky Infrastructure: Company’s subsidiary wins ₹2,085 crore water supply project for Musi River Rejuvenation.
2. Arfin India: Company secured a significant order for 6,900 MT of aluminum products valued at ~₹30 Crores/month from JFE Shoji India.
3. Vedanta: Company has been declared the 'Preferred Bidder' for the Punnam Manganese Block in Andhra Pradesh.
4. Sai Life Sciences: Company Opens Dedicated Facility for Veterinary APIs in Bidar, India.
5. Biocon: Biocon Biologics’ Yesafili added to Ontario’s Public Drug Formulary, Ensuring Funded Access for Patients with Retinal Diseases in Canada.
6. PSP Projects: Company sets World Record with Monumental 24,000 Cubic Meter Concrete Pour for Proposed World's Tallest Temple Vishv Umiya Dham.
7. Cochin Shipyard: The company has signed a contract with the Oil and Natural Gas Corporation (ONGC) for dry dock/major lay-up repairs of one of its jack-up rigs. The estimated contract value is around Rs 200 crore, and the estimated duration for the project is around 12 months.
8. Dixon Technologies: Company has announced plans to acquire a 51% stake in Kunshan Q Tech Microelectronics (India) Pvt Ltd, a manufacturer of camera and fingerprint modules for mobile handsets, IoT devices, and automotive applications. The deal, valued at ₹552.99 crore, will be executed through a mix of share purchase and subscription agreements.
9. MOIL: MOIL marked a significant milestone in manganese ore exports from India with the dispatch of its first shipment of 54,600 tonnes of manganese ore fines from Visakhapatnam to Indonesia as a State Trading Enterprise(STE).
10. Biocon: The company's subsidiary received US FDA approval for its denosumab biosimilars, along with being granted provisional interchangeability designation for the said biosimilars.
11. SJS Enterprises: Company signed an agreement with Hong Kong’s BOE Varitronix to collaborate for manufacture of automotive displays in India.
12. SpiceJet: Company has inked lease agreements for inducting eight more Boeing 737 aircraft ahead of the winter schedule.
13. Mahindra Lifespaces: Company to Redevelop Two Housing Societies In Chembur, Mumbai With A Combined Development Potential Of Rs 1,700 Cr.
14. Bharat Electronics: Company Secures Additional Orders worth Rs. 712 Crore.
15. Transrail Lighting Ltd: Company secured New orders worth Rs 421 crore, including a major Transmission Line Contract in a new African market.
16. Mishra Dhatu Nigam: Company Secures Rs 136 Crore Order; Order Book Stands at Rs 1,983 Crore
17. Concord Control Systems: Company Bags Kavach 4.0 Order worth Rs 194.5 million through Associate Company
18. Sanghvi Movers: Company Unit Got Orders worth Rs 2.92 billion

TechnoFunda Investing Quote from Legends -

Sir John Templeton's quote, "The four most dangerous words in investing are: This time it’s different," highlights the risk of believing that market cycles or fundamental principles have permanently changed. Investors often justify irrational exuberance or ignore historical patterns by assuming that current conditions are unique. However, while short-term factors may vary, market fundamentals—such as valuations, earnings growth, and economic cycles—tend to revert to the mean over time. Falling for the "this time is different" mindset can lead to costly mistakes, as it often precedes speculative bubbles or major corrections.

📚 Book I'm Reading This Week Quality of Earnings Quality of Earnings by Thornton L. O'glove is a practical guide that teaches investors how to analyze financial statements beyond surface-level figures. The book emphasizes the importance of scrutinizing earnings quality rather than blindly trusting reported profits. O'glove highlights how companies can manipulate financial data through accounting gimmicks, making their performance appear stronger than it is. Through real-world examples, he demonstrates how to detect red flags, assess the reliability of earnings, and make smarter investment decisions based on true financial health. List of All Books I have Shared →

TechnoFunda 101 - Power Capsules

Learn technical as well as fundamental concept in a simple way

Tobin’s Q – A Valuation Indicator for Long-Term Investors

When it comes to valuing a company or even the broader market, investors often use ratios like P/E or P/B. But there’s another powerful, less commonly used tool that offers a unique macro perspective: Tobin’s Q.

Created by Nobel Prize-winning economist James Tobin, this ratio helps determine whether an asset (or market) is overvalued or undervalued by comparing market value with replacement cost. Let’s break it down 👇

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🔍 What is Tobin’s Q?

Formula:

Tobin’s Q= Market Value of Assets / Replacement Cost of Assets

• Market Value = What investors are currently paying for the company (market cap + debt).
• Replacement Cost = How much it would cost to rebuild or replace the company’s assets from scratch today.

💡 Interpreting Tobin’s Q

🔹 Q > 1:

• The market is valuing the company (or market) more than its replacement cost.
• Often a sign of overvaluation. New competition may be attracted, leading to lower future returns.

🔹 Q < 1:

• The market is valuing the business below the cost of rebuilding it.
• Could indicate undervaluation or an opportunity to invest in distressed but asset-rich businesses.

🔹 Q ≈ 1:

• The company is fairly valued in terms of its asset base.

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🏗️ Why Does Tobin’s Q Matter?

1️⃣ Macro-Level Market Valuation

Tobin’s Q can be applied to the entire stock market to identify whether the market as a whole is overheated or undervalued.

✅ Used by economists and long-term investors to forecast returns.

2️⃣ Useful in Asset-Heavy Industries

Especially relevant for businesses where fixed assets dominate (like infrastructure, steel, manufacturing).

3️⃣ Helps Spot Cycles

• During market bubbles, Tobin’s Q tends to be significantly above 1.
• During deep bear markets, it often drops below 1, signaling long-term opportunity.

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📊 Tobin’s Q in Real Life

• In the dot-com bubble, Tobin’s Q soared well above 1, signaling market exuberance.
• In 2008 and early 2020, the ratio fell below 1, highlighting opportunities for value investors.

🔎 While not perfect for timing entries, Tobin’s Q is useful for macro positioning and avoiding euphoric peaks.

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⚠️ Limitations

• Hard to accurately estimate replacement costs, especially for intangible-heavy firms (tech, brands).
• Not as effective for companies with few physical assets.

📌 Best used alongside other metrics like ROIC, P/BV, and earnings growth for a more holistic view.

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✅ Key Takeaways

• Tobin’s Q offers a long-term valuation perspective based on economic logic.
• Q > 1 = Possible overvaluation; Q < 1 = Potential undervaluation.
• Use it to understand where the market stands in its cycle, especially in asset-heavy sectors.

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🚀 My Content For This Week 🎬 YouTube: Premiumization Theme and Stocks in India | Technofunda Megatrend​ ​ 📋 Twitter: Vivek Mashrani, CFA @MashraniVivek 🚀 India’s ₹4,594 Cr Mega Investment Plan: Which sector to focus next? Union Cabinet approved ₹4,594 crore for four new semiconductor projects (Odisha, Andhra Pradesh, Punjab) as part of the India Semicon Mission. This is huge shift like Defence and Railways few years back. 5:12 PM • Sep 13, 2025 55 Retweets 298 Likes Read 12 replies ​ 📷 Instagram: Big changes are here with the new GST reforms!​ 🔗 Linkedin: How do you actually decide which stock to buy?​ ​

🎙️ My Weekly Podcast For You

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Keep Compounding...

Vivek Mashrani, CFA Founder, TechnoFunda Investing

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