Tata Elxsi

Ultimately, we ended up focusing the book around, around five companies, uh, who we thought will, will make for great case study material for those watching who want to learn about business, how to build great businesses, how to invest in great businesses.

So we ended up writing on, on Divi's Lab, on Bajaj Finance, on Dr. Lal PathLabs, on, uh, Tata Elxsi, and Titan.

That's why the subtitle, "The Art of Enduring: How Great Companies Turn Crisis into Opportunity," right?

Hey, Saurabh, welcome to Bharat Varta again.

And I was very pleased to see that out of the seven companies in the Unusual Billionaires 10 years ago, five of them made it through the tests for this book.

Ultimately, we ended up focusing the book around, around five companies, uh, who we thought will, will make for great case study material for, for, for those watching who want to learn about business, how to build great businesses, how to invest in great businesses.

So we ended up writing on, on Divi's Lab, on Bajaj Finance, uh, uh, uh, uh, on Dr. Lal PathLabs, um, uh, uh, on, uh, Tata Elxsi and, uh, uh, and on, uh, and Titan, right? We ended up writing on those five.

But there's a bunch of other companies from 10 years ago who meet the test, but since we'd already written on them in Unusual Billionaires, we didn't want to repeat that.

In fact, every, all, each of these five companies we have seen at some point they have mana- you know, faced crisis, sometimes existential crisis.

Company [laughs] Was the question, right? So a fine example of this, let's talk about Tata Elxsi.

Mm.

Right? So Tata Elxsi, uh, Elxsi was the first company in the world-

Mm

... or the kind of group of people who developed what was called a super mini computer.

They decided not to do that, right? Again, going back to investing in talent, investing in people, right?

Mm.

81 crore as offshore exploration demand spikes.

Tata Elxsi revenue crosses 1,000 crore yet earnings margins fall due to subcontracting.

0.4% UPI fee impacts merchant margins forcing higher prices on shoppers.

Romesh Wadhwani started with under $3 building a software firm sold to competitors.

Experts project, spending in this arena will climb from $1.5 trillion to $2.5 trillion by 2030.

Yet currently only about 5% of this activity is outsourced compared to 46% of general IT services.

This gap represents a significant runway for Indian vendors like Tata Elxsi, L&T Technology Services, and KPIT Technologies.

However, capturing this revenue does not guarantee profit margins.

The fresh five, which are the heart of this new book, the book called Art of Enduring.

They are Bajaj Finance, Dr. Lal, Tata Elxsi, Titan and Divi's Lab.

Do these companies make money? Yes, the companies in Art of Enduring generate roaring share price returns.

In the 15-year period for which we tested them, these companies gave 60x share price returns during a period where the Nifty would have barely given 4x, 5x.