My take on position sizing , hope some of you may find it useful

Dynamatic Technologies : The risks worth taking, Daring to Dream against all odds open.substack.com/pub/valuee… @UTobyM @ahilya09

Sunflag Iron and steel , aerospace alloys pivot from steel and what I like about the business pivoting , do listen in on my latest substack audio note linked below link : substack.com/home/post/p-217…

Businesses I was reading this week and found interesting across sectors , market sense note ( 02/08/26) 1) Solara Active Pharma: A lot has happened in this business over the past few years, they have seen tough times, made few tactical mistakes, understood how a brand also in a weak landscape with competition finds it tough to survive and why core always wins But what’s changing now that makes it worth tracking? Their Ibuprofen business, a legacy business for them has been a very big drag on the earnings for them, with seeing losses as well in few quarters, management has reached a point where they acknowledge that this business may not be the right fit for Solara’s future and hence they are looking for strategic options (maybe sale to another player) Now on top of this they are planning to demerge the CRAMS/polymers business leading to better focus and making those businesses much more efficient , now what also is interesting is the big elephant in the room, their Vizag plant , a massive capex that they had done which is of no use today , management has plans to refurbish that into a full CRAMS or high yielding facility once they get clarity on what they want to be doing with the Ibu business There is also a clear path on debt reduction and incremental cash flows being deployed in the business that are better yielding, now that’s what might make Q2 a turning point for them because by then they would tell the market what they want to be doing with Ibuprofen and then Solara 3 years out could look like a very different company with high margin businesses , a big facility that can utilise the capabilities of the company as well ( Vizag) , entities that create value suddenly and the whole optics might change , so Q2 earnings and more than that the commentary is going to be the key monitorable 2) Ramkrishna Forgings ( Injured but not dead ) : Ramkrishna Forgings Ltd is primarily engaged in manufacturing and sale of forged components of automobiles, railway wagons & coaches and engineering parts, It is the 2nd largest forging player in India For those of who haven’t been tracking RKF , they had a major crisis internally on inventory valuations last year which came under internal scrutiny , April 2025, Ramkrishna Forgings uncovered inventory discrepancies during its annual physical verification. A joint fact-finding study later confirmed a ₹220.52 crore inventory overstatement for FY25 and ₹50.22 crore for FY24, resulting in a net adverse impact of ₹202.60 crore, the market did not like this one bit ( and fair enough) and the stock got punished severely ,more than halving in the last year Whats changing now? Last year management took moral responsibility of this issue and then committed warrants at much higher prices to show skin in the game, not only that they even made sure to strengthen internal practices , focus on building core internal practices that would ensure that something like this would not happen again, in my opinion , the business over the last decade outgrew the system inside it , but now with a lot of these issues behind them , in the Midst of this crisis came tariffs just a month after this leading to a very tough time for the management and the business Now fast-forward a year later , most of these issues behind them , Mexico plant going commercial from Q3 ( already started 6 cr) , their castings business which will ramp up substantially in the next 3 quarters , targeting 25% growth on the exports front , debt reduction target of 500 crores this year , FY29 revenue target is 9,000 cr , indicating a 22-25% CAGR , rail wheel business contributions and incremental overall business orderbook being healthy and management very confident of demand trends and their ability to start seeing sequential growth in the next few quarters that will help market re imagine a better termina value for this business Also , something not valuable today but in the future If they can pull off business in the specialty forgings side , management has just announced the entry into Aerospace side forgings in Aluminium , Titanium that they are already trying to bid for orders and get machines and focus on building capabilities here ( management has clearly said don’t expect meaningful revenues here before FY29 , but this is something to be tracked , as it again changes the nature on the margins front ) This is a business I think where I see good rate of change cycle play out over the next few years, will be worth mapping this one out and read it folks 3) Market Share gains theme : Greenpanel /Greenlam/Kajaria Ceramics: Now these businesses even though are fundamentally different, but one thing is common, Market share gains can be seen across the board, fundamentally companies with larger balance sheets in time of crisis in a sector tend to win every time there is a crisis In the case of Kajaria , lets see what happened in April period , Out of 500 plants in Morbi , may be around 150 are running , many plants don't even have a single box and everything has been sold let's say, for INR20 a square feet, that's a 4 feet by 2 feet price, right? Today, as far as they are concerned, their costs have gone up by 35% because of increased price of gas. So their prices have gone up from INR20 to INR27 or INR28 depending on the customer. As far as Kajaria is concerned, I was already selling at a higher price. So my price increase is only 15%, 16%, which covers the cost of that. So that is what the scenario is. If somebody supplies you from Morbi, he was earlier supplying you at INR20. Today they supply you at a minimum price of INR27, INR28, maybe INR29 also square feet. So their cost escalation is 35% to 45%. Also two things , promoters have bought the stock at last year in August and Dec and also they have just closed a buyback of shares as well There is a clear case of business consolidation in the hands of large players with market shares and volumes because situation in Morbi seems to be painful ( this is based on commentary in April ) Now of course , there has been some normalization post the crisis , but fundamentally market share gains have happened and weaker and smaller players keep finding issues to survive this and hence creating these gains for listed players for Kajaria that start to show up when cycle turns positive for their customers , it is almost the same story with Greenpanel , seeing price hikes in most products ,smaller players factories not being operational and clear market share gains I like this pattern of market share gains + capex cycle completion + Inflation cycle coming , that usually is very EPS accretive incremental growth and delivers well for PAT growth Some small and interesting things I also read this week : 1) Pharma and Biotech M&A is very hot last month in the US >All of 2025 size , there are very large M&A deals happening in the pharma space in the US as well ( Vertex acquiring Crinetics for $10B , endocrine therapies rare disease pipeline ) , Eli Lily acquisition of AtaiBeckly ( $2.8B , Psychedelic medicines entry , very interesting as first for them Chinese Biotechs rising on the Global front Astrazenca licensing Chinese technologies in Pharma , noval oral EGFR inhibitor, CPSC group for Kidney related disease , folks this is showing the capability deepening of Chinese Biotech and Pharma ,an industry that is very interesting to track as now American majors are not just outsourcing capacity but also capability , they are moving very high in the value chain ( when you track global pharma , tracking Indian pharma is much easier , because you can easily do capability depth mapping and see who’s odds are better to win big, this is why my pharma hit rates are high , a global lens into investing in Indian companies ) 2) Value Add as a structural theme : We saw this play out with Sansera beautifully last year when the ADS business pivot happened and we saw significant transition gains play out and reward our thesis , it is important to keep seeing such companies where this is happening , one in this space worth tracking is Bansal wires , after a weak Q1 management has guided for good numbers and most importantly ROCE accretive incremental growth that helps the business structurally , there are many such businesses that are going through mix shift that fundamentally alters the trajectory of that business , study those 3) IT divergence is starting, winners are being separated and rewarded : Coforge came out with phenomenal set of numbers last week and market is starting to recognize and see that if this continues coforge will pivot to being India’s largest IT companies in a few years , Sudhir Singh and team are doing a phenomenal job , and they seem to be on a very different growth tangent that is helping them , just listen to their Q1FY27 concall and my substack Audio note on their earnings you will know what I am talking about That’s all for this one folks, hope you all found some value on this one , and this note is fully Ameya Deosthali Generated( that’s my name ) and fully typed out by me till late last night , ( no AI involved at all ) , hope you all enjoyed reading this one , and if you did , let me know in the comments ! disclaimer : this is not investment recommendation/investment advice in any form , I may be biased in few of the names ( take my opinion with buckets of salt) and use this as starting points to research and do your own due diligence not as investment advice

Interesting , as I’d said before as well interest rate hike is a big event if it happens, as equation for US equities get tough , but trump is trying very hard not to let this happen But the theme to play again is sticky inflation , chemicals , home improvement channels indicate higher prices still tighter

Heavily regulated sectors have a Huge B2G risk , where the probability of black swans is much higher , this has happened in NBFC's with RBI , Pharma with FDA and EPC also which may purely rely on government This is where valuation comfort and sizing have to factor B2G risks , however attractive the business is