Grindwell Norton Limited

“Grindwell Norton is a high-conviction quality business — India's dominant abrasives and SiC ceramics compounder, backed by Saint-Gobain's technology pipeline, running at 27-30% ROCE with a net-cash balance sheet and strong FCF conversion — but the current 52x trailing P/E embeds an implausible ~21% earnings CAGR to generate adequate returns, limiting base-case 10-year appreciation to roughly 9% CAGR. The business deserves a permanent place on the watchlist; the stock deserves patience for a better entry around 35-38x forward earnings (approximately INR 1,300-1,400), most likely available in the next broad market drawdown.”