Elgi Equipments Ltd.

“Elgi Equipments is an above-average industrial compounder with a proven India flywheel (equipment sales → installed base → high-margin aftermarket), clean financials, and a long-tenured promoter-led management team. The business earns 22–25% ROCE in its domestic core and has a decade-plus reinvestment runway from Indian industrialization. The strategic bet on international expansion is credible but still unproven after a decade of effort, and the 40.9x trailing P/E leaves no margin of safety — even in the bull case, expected 10-year returns are only ~5–6% per annum. This is a company to own at the right price, not at today's price.”