Apar Industries Ltd.

“Apar Industries is a genuine quality compounder — exceptional ROCE, irreversible demand tailwinds from global grid modernization, a narrow moat in HTLS conductors, and a shareholder-aligned management team. The business earns above-average returns at below-average risk of permanent impairment. However, at 44x forward P/E and 10x book, the market has already priced in 5-7 years of compounding, leaving a prospective 10-year return of roughly 2-3x under base case assumptions and minimal margin of safety against any execution disappointment or multiple compression. The investment case is not in doubt; the entry price is. A 20-25% correction to INR 9,500-10,000 would create a compelling risk/reward for a first tranche.”