Bastion Research

Two years ago, we started Bastion CORE with one simple commitment, to think seriously about investing and share that thinking honestly. Over time, we realized that serious investors face not one but three problems: → Making sense of market noise → Deciding how much to allocate to each business → Executing and monitoring it, without doing it all manually Bastion CORE has been solving the first problem for two years. Today, we are taking the next step. On 26th March 2026, we are going live on Smallcase with Asymmetric Growth, a high-conviction equity portfolio built on a process, not tips. Before you decide, come hear us out first. We are hosting a FREE webinar on 26th March at 11:30 AM where we will walk you through the entire philosophy, portfolio construct, and take every question you have. If you wish to follow this journey and decide for yourself: 🎙️ Webinar — 26th March at 11:30 AM 🎟️ Waitlist members get 20% off on yearly subscription 📋 Join the waitlist here → forms.gle/fKNXHCBJURPhh4… If this resonates, we would love to have you along. If it doesn't, trust that instinct.

Bottomline: Retail is not about how fast you grow. It’s about how well each store performs.

5. Demand Cycles – the most ignored driver Retail is cyclical. Just less obvious. Typical cycle: Pent-up demand → Normalisation → Replacement cycle Most people miss this. One simple edge: → Talk to management and create a self judgement where do we stand! Because demand timing can make or break growth narratives.

Most investors value retail companies on a simple playbook: P/S multiple + peer comparison. That works… until it doesn’t. Because in retail, revenue growth alone tells you nothing. What matters is what’s driving that growth. Growth without unit economics is just a vanity box. Here’s what actually matters 👇

Top 4 Learnings from Buffett's 1981 Letter 1) Avoid overpaying, even for a good business - A good business can still be a bad investment if bought at too high a price. Buffett repeatedly emphasizes that return depends on both business quality and entry price. 2) Management skill cannot usually transform a bad business - Buffett mocks the idea that smart managers can magically fix poor businesses. Great managers help, but bad economics usually remain bad economics. 3) Buy businesses that can thrive in inflation - He highlights two traits of exceptional businesses: pricing power and low incremental capital needs. Businesses that can raise prices without losing customers and grow without heavy reinvestment are highly valuable. 4) Mistakes are inevitable, but they should be corrected quickly - Buffett openly admits errors, especially in judging future business economics. The lesson is that investors should be humble, recognise mistakes early, and move on rather than defend weak decisions.

Most investors don’t lose money because they picked the wrong stock. They lose money because they ignored the right red flags. Few weeks back in Surat, we broke down our Accept/Reject framework in a closed-door session. The response? Clear: people found it practical, structured, and immediately usable. But many of you couldn’t attend. So we’re bringing the same session online. 📅 18th April | 11:30 AM 🎯 Session: Identifying Hidden Portfolio Red Flags What we’ll cover: • 10 red flags that quietly destroy portfolios • How multiple red flags combine to amplify risk • Real case studies with actual numbers • Live analysis of stocks (you can bring your own) Just practical frameworks you can apply immediately. Register here: bastionresearch.in/webinars/portf… If you’re serious about protecting capital before chasing returns, this is worth your time.

Q. Its a UK based company, is there any thoughts that belrise is bringing the manufacturing capbility/base to india soon? - Management has said its not a near term plan! The immediate focus is on learning from the UK plant, growing with Chester’s customers, and considering India only when demand, process maturity, and customer comfort improve. Q. Apart from Chester Hall Precision acquisition, is ther anything else Belrise is looking at? - Belrise Industries, a leading Indian automotive systems manufacturer, and Plasan Sasa, a global leader in advanced armor and survivability solutions, have entered into a strategic agreement to jointly pursue opportunities in the Indian military market with the innovative ATEMM systems. The ATEMM (All-Terrain Electric Mission Module) is a cutting-edge self-propelled electric platform designed to enhance operational payload, energy, survivability, and mobility for modern armed forces. The partnership aims to deliver advanced mission-ready solutions tailored to the requirements of the Indian defense sector, aligning with the Government of India’s Make in India and Atmanirbhar Bharat initiatives. - acquisition of SDM, a European aerospace manufacturer specializing in high-precision machined parts for aero-structures, aero-engines and robotics

Other IMP info: Q. Why is Belrise shifitng from Auto to aerospace/defence? - Aerospace/defence are high-technology, safety-critical segments with higher entry barriers and better strategic value than conventional auto components.

Belrise is gradually moving beyond being just an auto component player and is using acquisitions to enter aerospace and defence. Why not build self-capability and acquire someone? - It takes an ample amount of time to build capabilities, take approvals, and build customer relations from scratch in the aerospace/defence industry! Management has said aerospace and defence can become a meaningful revenue contributor in the medium term.

A shell company with a market cap of ~Rs 6,000 crore… making losses every year… and yet hasn’t even crossed Rs 2 crore in revenue gave 50x return in the last 15 months. Here’s the story A company called Midwest Gold Ltd., incorporated in 1990, has spent decades in the business of trading granite and marble but has never generated any meaningful revenue. In June 2024, Kollareddy Rama Raghava Reddy was reclassified as the promoter after acquiring the entire stake in Midwest Gold from its parent, Midwest Ltd. Then things started to move. From January 2025 to till date, the company raised around Rs 450 crore through preferential allotments, either from promoters or a select set of investors. And this happened while the stock price moved from ~Rs 100 to nearly Rs 5,000 per share in just 15 months. That’s a 50x rise. Now, the new narrative: The company has announced its entry into the Battery Energy Storage System (BESS) space, specifically assembling lithium battery cells to manufacture battery racks. While studying a similar theme in Godawari Power & Ispat Ltd., we found that the final cost of such battery racks is estimated at around Rs 35 lakh per MW, and the EBITDA margin of such business is ~5-6%. Using that benchmark, if Midwest Gold sets up a 1 GW (1000 MW) capacity plant, its potential annual revenue would be around Rs 350 crore. At current pricing, that implies a price-to-sales ratio of ~15x, which already raises questions. Another angle to look into: Midwest Gold Limited was originally a subsidiary of Midwest Limited, which held a 70.63% stake in the company. Midwest Ltd, a promoter-owned entity, is a well-established and profitable player in the natural stone industry, engaged in the exploration, mining, processing, and export of granite. It recently IPOed in Oct 2025 and has a market cap of Rs 4,700 crore and reported revenue of Rs 626 crore in FY25. So here’s where things stand: - A company with negligible revenue - No history - A newly announced business with uncertain execution - Carved out from the control of the Midwest Ltd That brings us to the real questions every investor should be asking: Given the projected revenue potential (Rs. 350 Cr) and EBITDA margins (5-6%) discussed earlier, how does a company like this justify a market cap of around Rs 6,000 crore today?

We asked for your energy and you gave us everything. From a screen to the same room is worth every second. Thank you for showing up and making our first meet something we'll never forget. Here's a glimpse of our first physical meet.

A price reduction of 22-25% in the product over the last 2 years. This 1 line may not look like a big thing. Just adding 1 more thing: this is a phenomenon not seen in the last 18yrs in India! [this creates an impact] The spices industry, which is 60% unorganized in India, has seen a significant correction in prices in the last 2 years.

If you want to understand CNC machines properly, do not just look at demand and market size. Look at the BoM. This data point helps decode where the money is made, which components matter most, and why higher-end machines can have very different margin structures versus lower-end ones. Credits: Wallfort Financial Services Ltd

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Credits: Avendus

We believe that even as the world transitions toward EVs, export-led demand for Indian auto component players may not weaken as much as feared. In fact, for companies that can deliver scale, quality consistency, and customer trust, this reset in global sourcing can become the next leg of growth. The opportunity is no longer just domestic substitution. It is participation in a structural reordering of global supply chains.

Decoding a Theme Emerging for Indian Auto Companies The global auto industry is under pressure from multiple directions. Demand softness in China and Europe has weakened pricing power, while rising Chinese exports have intensified competition across global component markets. At the same time, OEMs are facing an expensive transition to EVs, even as legacy ICE platforms continue to require cost control. The result is visible margin pressure across major auto manufacturers, forcing a rethink on sourcing and supplier strategy.