Chirag Gandhi

CA | CFA | Market Observer | Passionate about Football

[Pankaj Tibrewal @pankajtibre]

How 100-Baggers Are Really Created and how to Spot them.

2025 reminded us that markets are noisy, emotional and unpredictable.
But history shows that the biggest fortunes were not made by predicting events — they were made by owning great businesses and letting time do the heavy lifting.

They came from owning ordinary-looking businesses that quietly compounded year after year.

Take a simple example.
A company that grows its profits at 20% a year does not look exciting in any single year. But if that growth continues for 25 years, the business becomes 100 times bigger. And over time, the stock price tends to follow.

That is what we call a 100-bagger

Over the last 25 years, multiple Indian companies have delivered 100× returns.

These include names like Titan, Bajaj Finance, Pidilite, SRF, Shree Cement and TVS Motor etc. They did not become 100-baggers because of one big event. They became 100-baggers because they kept growing steadily for decades.

No hype. No frenzy. No big story.

The fascinating part is this: most of these companies never looked extraordinary in the beginning.

[Liverpool FC @LFC]

From Leverkusen to Liverpool 🌍

[Intrinsic Compounding @soicfinance]

A single drug class is crashing diet programs, trimming grocery bills, and forcing pharma to pour >$40 B into new plants. Welcome to the #GLP1 era.

Here’s the deep dive you didn’t know you needed.👇

[Royal Challengers Bengaluru @RCBTweets]

𝐂𝐇𝐀𝐌𝐏𝐈𝐎𝐍𝐒 ⭐️ RCB PLAYED BOLD! 😇

17 Years, 6256 Days, 90,08,640 Minutes later, the wait finally ends. 🙌🤯

The IPL Trophy is finally coming home. And we CANT KEEP CALM! 🤩😍❤️

[Aditya Kondawar @aditya_kondawar]

India generates ~20% of the global data but in terms of Data Center capacity, it has a share of just 3% 💾

The Indian Data Centre (DC) opportunity and stocks + a summary of around 7 Data Centre reports that I read 📚

A thread, do retweet 🧵👇

[Anantha Narayan @ThisIsAnantha]

THE MAN WHO SAW TOMORROW

Tamil Nadu is the toughest puzzle to solve for any national party in India. Ask the Congress party. It was in power for 20 years since independence. And then one fine day the state was lost to Dravidian parties. It’s been 57 years since, and the Congress is nowhere among the frontrunners. The Communists have tasted success in Kerala. But they’ve always been a sidekick in TN; never the lead player. Which brings us to the BJP.

The BJP took almost 50 years to conquer the Hindi belt. The top leadership knows that the South will take a few more decades. And Tamil Nadu being the hardest nut to crack, the Sangh parivaar is willing to wait. And wait. And wait.

The preparation for the harvest was started in the late sixties. Some green shoots were realised in the nineties. But the real confidence to breach Fort St. George was realised in 2019 after BJP became the largest political party in the world.

The original plan was to create a nationalist front by riding a horse called Rajinikant. But the superstar developed cold feet possibly due to ill-health. So, the BJP had no other choice to create its own hero. BL Santhosh, the national general secretary of BJP, played the biggest ace of his career by punting on a man called Kuppuswamy Annamalai.

K. Annamalai is the very antithesis of Tamil politicians. He’s super well educated, for starters. An IIM-L grad and ex-IPS to boot, he’s more prepared than Chat GPT to answer any question dart thrown at him by anyone.

Having been mandated to disrupt state politics, Annamalai decided to do a deep dive of all things Dravidian. The learnings came thick and fast:

A) Tamil Nadu is more about larger-than-life leaders than parties. It’s important for BJP to project one leader than a group of leaders.
B) What keeps Dravidian parties going is the ecosystem of Movies, Media, and Literature. A parallel ecosystem needs to be created to take the Dravidians on.
C) Tamils aren’t too hung up about Dravidianism. All they want is the Tamil culture to take the pride of place.
D) Hindi the language is not resented. But Hindi-domination is.
E) Modi was a hate figure largely due to the Dravidian campaign. This perception can be reversed as it’s merely a perception
F) Tamils love bold leaders. Jayalalitha was always preferred over Karunanidhi for this reason. There’s no space for a Mr. Nice in state politics.
G) While the lead parties might profess atheism, the state is by and large teeming with believers. Maybe a play can be made to tap into the spiritual side of the state.
H) AIADMK minus Jayalalitha can never come to power by themselves. And AIADMK + DMK vote share is only 70%. The other 30% is available for BJP if they make an aggressive pitch.
I) The opposition parties in Tamil Nadu have a cosy arrangement with the ruling party. They have a ‘Zero attacks for 4.5 years’ policy. The average opposition leader will stir out of his home only 6 months before elections
J) Politicians across the board have skeletons in their closet. No one is seen as ‘clean and honest’ by the public.

The thing that sets Annamalai apart from others was the fact that he weaponised his learnings. The first thing he did was to unabashedly project himself. A war room was set up to make him the most talked about BJP politician on social media. This obviously got the goat of many of his colleagues. But he managed the national leadership’s backing and thus was born the Cult of Annamalai.

Having overcome competition from within, Annamalai set his sights on the larger prize. Can BJP become the No.2 party by 2024? And the No.1 party by 2026? For Mission 1 to succeed he had to turn AIADMK into an adversary. Hence his aggression vis-à-vis the party of two leaves. Once he got AIADMK out of the way, he unfolded his Brahmastra – the En Mann En Makkal - a 1770 Km padayatra that traverses every constituency in the state.

No one in Tamil Nadu had attempted anything on this scale. By exercising this walkathon option, Annamalai was striving to make history. Fortunately, he got the backing of the BIG 2 when he repackaged the yatra as a platform to promote the Modi story. Amit Shah came for the inauguration. Modi, for the grand finale which attracted over 5 lakh people.

BJP watchers in all Television channels have acknowledged a significant blip in the vote share after the yatra. From all estimates, right now the party might clock anywhere between 8% and 18%. That’s the magic of Annamalai.

For a party that in the best of times got around 5%, this is the great leap forward. To best the AIADMK in the Lok Sabha polls will be the stuff that dreams are made of. To beat the DMK will be even sweeter.

Annamalai knows Mission 1 is a realisable dream.

Mission 2 should happen by 2026. In his mind, there’s no doubt about that.

And that’s why, everyone loves Annamalai.

[Natalie Brunell ⚡️ @natbrunell]

Bonus Episode! The 30 yr bond auction got very ugly this week. Why/how/what does that mean? @jameslavish breaks it down simply.

We discuss the Treasury announcement, bond auctions, why yields surged, the Chinese bank hack, #Bitcoin price & liquidity, and ETFs:

[STAR Boy TARUN @Starboy2079]

Deep St@te, Izrael- Arab and Profit (Thread)
Know The Game

1973
US economy was going on in bad shape. Vietnam was had damaged US economy, US debt was high

But this story doesn't start from 1973

It starts from 1944 from an Hotel Mount Washington from Bretton Woods

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[Antifragile Thinking @unseenvalue]

The 4 Engines of Boeing 747 [Stock name in the end]. Read the disclaimer at the bottom at least 100 times!!

Engine 1: This engine is currently not running but will ultimately play a very critical role in taking the aircraft to much higher levels of capability; Note that I use my words very carefully. I said "capability" and not necessarily the stock price; This is a one of its kind engine in the Indian biotechnology space today and you can’t easily replicate the capability of this engine; But this is a 2030 engine not a 2024 engine just to manage your expectations as most people are very impatient and short term oriented!

Engine 2: this engine is already running and been improving at well above industry and giving the much-needed lift to the aircraft if you read the 2Q and 3Q numbers carefully; Don’t miss the wood for the trees; this is a good engine into Oncology, Cardiovascular, Diabetes and Respiratory therapeutic segments and mind you these are very much growth segments; and this engine often gets ignored in the smoke and mirrors of the other 2 engines that I am about to explain next!

Engine 3: this engine was almost dead for the better part of this fiscal (FY23) but will restart again in FY24; this is a very critical engine going into FY24 and beyond, and I can call it the “mother engine” as it was the only engine about 7-8 years back, and has been feeding all other child engines in recent years; when I reveal the name of the business am sure you’d agree with the analogy :)

Engine 4: This is the Rolls Royce engine and its very versatile all-weather engine that has the longest shelf life; I repeat the longest shelf life as it covers the entire gamut of science and novel technologies across sectors from Nutraceuticals to Cosmeceuticals to Animal science, Crop science, human Pharma and many other active ingredients for US, EU Consumer companies as well. FY23 has been an exceptional year for this engine due to the Paxlovid bonanza … I have highlighted this as a key risk many times in the sense that this has created a large base going into FY24 … and my sense is we may get back to FY23 innovator CDMO sales in FY26 … so FY24 will be de-growth and FY25 will offer some recovery as animal CDMO custom synthesis goes commercial … but a new high may take 2 full years so FY26 is by estimate; But Paxlovid has generated good cash flows and the assets that are being funded with this cash will have a 30 year shelf life!

Summary: next 3-4 quarters will be soft due to Paxlovid base that will not be repeated in FY24. This is the reason stock has corrected so sharply, but that does not mean that the recovery will be linear and fast. It may take a good 3-4 years as well. Who knows? There are US FDA issues across the board and even good compliance companies like Cipla and DRL have had regulatory challenges. US FDA non-compliance has to end, period!

References: Laurus Labs 3QFY23 earnings transcript and past earnings transcripts as well as past annual reports and presentations. All material is public and can be found on the company website as well as the stock exchanges.

Strong Disclaimer: Laurus Labs is my disclosed holding since 2019 when the price was around 65-75 zone. There is no recommendation to sell, hold or buy fresh for that matter. I am not a registered financial advisor. I am definitely not your financial advisor. Do not act on this unseen opinion. I repeat! - NO Recommendation on Laurus Labs or any stock ever. I am super bullish on innovator CRAMS / Novel API Synthesis / NCE Intermediates manufacturing space. I was bullish on this theme in 2017, 2018, 2019, 2020, 2021, 2022 as well. We can't be 100% correct in our analysis. Future is incredibly unpredictable. Reserve the right to be wrong. Consult a qualified investment advisor rather than following someone on social media. Stay safe. Stay conservative!!

[Pankaj Tibrewal @pankajtibre]

Throughout my investing journey, I have learned some crucial lessons, particularly with regard to the significance of identifying honest and capable management teams, promoters, and entrepreneurs for achieving long-term success in the Indian market. The review of management becomes even more vital within the dynamic landscape of mid and small-cap companies, where leadership often serves as the primary driver for growth. We believe that P/E is not only Price/Earnings but “Promoter+ Ethics”.

Over last decade or so we have seen some important shifts in Indian promoters/entrepreneurs. While these trends cannot be generalised, they illuminate some noteworthy shifts:

1. Adept Capital Allocation: More management teams and promoters are now well-versed in the intricacies of capital allocation and the associated costs of equity. They understand that skilful capital allocation is both an art and a fundamental driver of value creation. Concepts like Return on Capital Employed (ROCE) and Return on Equity (ROE) have gained broader acceptance.

2. Governance and Integrity Focus: As the torch passes to the next generation in leadership roles, we have observed a significant pivot towards enhanced governance and integrity. The bygone era of 'Jugaad' and a relaxed approach to regulatory compliance is giving way to a contemporary landscape that places a premium on adherence to regulations and a prudent approach to taxation. In the coming decade, we envisage the rise of fresh wealth creators, even as some of the established ones may wane due to a lack of passion
within the next generation .

3. Openness to Feedback and Delegation: With the new generation at the helm, there exists a greater receptiveness to feedback from investors and other stakeholders, provided it contributes to improvement. Furthermore, this cohort is more inclined to delegate responsibilities and endorse the owner-professional model, sharing the wealth created with employees through Employee Stock Ownership Plans (ESOPs).

4. Optimism About India's Potential: Many of these entrepreneurs harbour an unwavering optimism regarding India's potential, driving them to make bold investment decisions. There is a growing inclination among management teams to play an integral role in India's growth story, eschewing past mistakes of pursuing acquisitions abroad.

5. Emerging Tier 2 and Tier 3 Entrepreneurs: Notably, we are witnessing a surge in passionate entrepreneurs hailing from Tier 2 and Tier 3 cities. The 2023 Hurun list of India's wealthiest individuals illustrates the success stories emerging from cities like Coimbatore, Ludhiana, Rajkot, Nagpur, Surat, and Udaipur. This highlights the need to venture beyond metropolitan areas in the pursuit of new opportunities and identifying next set of wealth creators.

In conclusion, In India, more than the business, what is most important is management. Identifying right set of promoters/ management teams would be critical for investment success.

[Ashwini Damani @ashwinidamani]

This is a great podcast.. Dont just go by the heading.. This is a masterclass in 1 hour on Lithium, Copper, Chemistry and various other metals

https://t.co/TANi1k7SjD

[Daniel Mahncke @MnkeDaniel]

Joel Greenblatt and Howard Marks, two of my favorite investors, in a 30-minute talk.

Highly recommend watching this one:

[Invest In Assets 📈 @InvestInAssets]

Peter Thiel once said:

"All failed companies are the same. They failed to escape the competition."

Analyzing the competitive landscape of a market is essential for investors

Let's look at why Costco has managed to escape its competition:

[Aswath Damodaran @AswathDamodaran]

From a billion dollars to Mbappe for a one-year contract to $6 billion for an NFL team with a middling record on the field, it is difficult to make financial sense of what's happening in sports today. My trophy asset explanation is in this post: https://t.co/0btk2f3ijq

[Prince | Accidental Investor 🇮🇳 @AI_Feb21]

Masterclass on Chemicals is now live.

Great perspective & Insights shared by @AdityaD_Shah @LearningEleven
@jitenkparmar @ravikantbhatt

Don't miss out on understanding the sector economics & pessimism.
#Chemicals
https://t.co/QFaMaIenX7

[Thomas Chua @SteadyCompound]

Before, the only way to learn from investing legends was to get into Columbia Business School.

It featured greats such as Ben Graham, Joel Greenblatt & Bruce Greenwald.

Today, the internet has made education available to all for FREE!

The top 5 'lectures' by fund managers:

[Chronicles @YMehta_]

Google Sheet is a powerful tool, but most people don’t know how to use it to excel in TRADING and INVESTING 📖

Top Google Sheet features every trader and investor should know in this Thread 🧵:

[Antifragile Thinking @unseenvalue]

Enjoyed the interaction. Good bunch of thoughtful questions. Thanks for hosting @AI_Feb21 and thanks to @jitenkparmar for some great insights as well. Thanks all for participation. For me it was some valuable learning via this interaction 🫶

https://t.co/tBAuquOvEr

[Saket Agarwal @saket1974]

I am seeing many wrong comparisons between pipe cos. on SM. People are comparing different segment cos. with each other like APL Apollo with Welspun Corp. or Venus Pipe while all these 3 cos. are in completely different product categories.
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