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

Sectors in Focus

Major Corporate Developments This Week

1. Lloyds Engineering: Company partner to develop defender SIGINT UAV for India’s Defence Sector
2. NTPC Green Energy: Company Signs MOU With Government Of Gujarat For Development Of Solar Parks And Wind Projects; Cumulative Capacity Of 10 Gw For Solar And 5 Gw For Wind.
3. Afcons infrastructure: Company Receives contract award worth Rs. 576 crores for civil and allied infrastructure works; includes GST.
4. Blue dart express: Company Launches instant digital account opening platform; enables businesses to open accounts in 10 minutes and start shipping immediately.
5. Ramco systems: Company Selected by global engine maintenance India to implement aviation software for engine teardown operations; aiming to digitize operations and improve efficiency and compliance.
6. SonaBLW: Company signs MoU with Germany-based NEURA Robotics for joint development of robots & humanoids in India & international markets.
7. Rajesh Power: Company signs MoU with Gujarat Government for projects worth Rs 4,754 crore.
8. Subex: Company Secures $6.62M Deal with Dutch Telecom Giant for AI-Driven Billing Solutions
9. DP Abhushan: Company reports 85% YoY Growth in Festive Sales.
10. Kansai Nerolac: Company expands Industrial Operations in Chennai – Now 116 Depots Nationwide.
11. Global Surfaces Ltd: Company Secures $1.58 Million Order from US-Based MSI.
12. Trom Industries: Company received a purchase order from Diamond Alloys for a Grid Connection Solar Roof Top System.
13. Railtel: Company Wins Order worth Rs 182.2 million
14. HFCL: Company secures export orders worth ₹303.35 Cr for optical fiber cables via its overseas subsidiary
15. Garuda Construction: Company gets work order worth Rs 144 crore for civil works of redevelopment project in Mumbai.
16. Emcure Pharma: Company shown strategic growth as revenue jumped by 18%, Debt Cut by 56%, & Zuventus Acquisition.
17. Artson Engineering: Company and Fiber Strength AS have signed a MoU to jointly develop container manufacturing capabilities using engineered bamboo technologies.
18. Solar industries: Company wins order worth Rs. 483 cr rupees.
19. Indegene: Company announced the acquisition of BioPharm, a U.S.-based omnichannel marketing business, for $104 Million plus ~$2 Million for excess cash.

TechnoFunda Investing Quote from Legends -

John Keynes' quote, "Markets can remain irrational longer than you can remain solvent," highlights the unpredictability of financial markets. It suggests that even if you are correct in your analysis, the market may continue moving irrationally against your position for an extended period. As a result, traders or investors betting on a rational correction may face significant losses or run out of capital before the market eventually aligns with fundamentals. It’s a cautionary reminder about the dangers of timing the market and the importance of risk management.

The Compounding Life Newsletter - by Vivek Mashrani

​

The TechnoFunda Circle

📚 Book I'm Reading This Week Fortune's Formula Fortune's Formula by William Poundstone explores the fascinating intersection of gambling, mathematics, and investing. The book chronicles how mathematician Claude Shannon and gambler Edward Thorp applied the Kelly Criterion, a formula for optimal bet sizing, to beat both casinos and financial markets. Through real-life stories and financial insights, it reveals how this formula became a secret weapon for some of the most successful investors, while also highlighting the risks of misapplying it. List of All Books I have Shared →

TechnoFunda 101 - Power Capsules

Learn technical as well as fundamental concept in a simple way

Cash Conversion Cycle – The Secret Metric Behind Efficient Businesses

Everyone looks at revenue and profit, but the smartest investors also ask:
👉 “How fast does this company turn its operations into cash?”

That’s where the Cash Conversion Cycle (CCC) comes in. It shows how quickly a company can turn its inventory and receivables into cash flow. And companies with a short CCC are often cash-generating machines.

🧠 What is the Cash Conversion Cycle (CCC)?

Formula: CCC = Days Inventory Outstanding + Days Sales Outstanding − Days Payables Outstanding

In simple terms:
➡ How long does it take to buy inventory, sell products, and collect cash—minus the time taken to pay suppliers?

• Shorter CCC = Better liquidity & efficiency
• Longer CCC = More capital stuck in operations

🏭 Breakdown of Components:

1️⃣ Days Inventory Outstanding (DIO)

How many days inventory sits before being sold.

🔺 High DIO → Slow-moving inventory
🔻 Low DIO → Efficient inventory management

2️⃣ Days Sales Outstanding (DSO)

How long it takes to collect payment from customers.

🔺 High DSO → Weak credit control
🔻 Low DSO → Fast cash recovery

3️⃣ Days Payables Outstanding (DPO)

How long the company takes to pay its suppliers.

🔺 Higher DPO = Delaying cash outflow (good, up to a point)
🔻 Lower DPO = Paying too fast, which hurts cash position

🏆 Why CCC Matters to Investors:

✅ Helps you identify capital-efficient businesses​
✅ Short CCC = Faster reinvestment cycle = Better compounding​
✅ CCC trends show operational health even before P&L changes

🔍 Real-Life Examples:

• FMCG Companies (e.g., HUL, Nestlé):​
  Often have negative CCC – they get paid before they pay suppliers!
  → Strong working capital model and high RoCE
• Auto Sector:​
  Typically has longer CCC due to manufacturing and dealer credit cycles
  → Watch CCC trend during demand slowdowns
• Retail (e.g., DMart):​
  Low inventory days + fast sales + good supplier terms = extremely efficient cash engine

📌 How to Use CCC Practically:

• Compare CCC across peers in the same industry
• Watch for improving or deteriorating trends YoY or QoQ
• Use CCC along with ROCE and Free Cash Flow to spot operationally strong companies

💡 Key Takeaways:

• CCC helps uncover operational efficiency behind the numbers
• Companies with low or negative CCC often enjoy strong cash flows and better margins
• Always compare CCC in context of industry norms

​

​

🚀 My Content For This Week 🎬 YouTube: Auto Ancillary Sector in India | Technofunda Analysis ​ 📋 Twitter: Vivek Mashrani, CFA @MashraniVivek Back in 2007, I entered the markets with big dreams and zero direction. From random F&O trades to following tips from friends and TV anchors I thought that’s how wealth was built. It took losses, mistakes, and a lot of hard lessons to realise: 👉 Investing isn’t about speed. 2:21 PM • Oct 3, 2025 0 Retweets 17 Likes Read 7 replies ​ 📷 Instagram: Mistake Made me Investor 🔗 Linkedin: India's Auto Component Industry is Shifting Gears ​

🎙️ 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.

Shivalik Parkview, Ahmedabad, Gujarat 380058
​Unsubscribe · Preferences