CG Power and Industrial Solutions Limited

“CG Power is a credibly-governed, high-ROCE electrical equipment manufacturer riding India's decade-long power infrastructure upcycle, with a bold semiconductor ATMP optionality leg now consuming real capital. The business quality is genuine — 25% revenue growth, 35%+ ROCE, sticky customer relationships, and structural tailwinds in transformers, motors, and railway traction. However, at 110x trailing P/E and 72x EV/EBITDA, the stock embeds a decade of flawless execution with zero margin for error, while the company simultaneously enters its most capital-intensive and execution-uncertain phase. The valuation, not the business, is the reason to stay on the sidelines.”