Tube Investments of India Limited

“TII is one of India's better-governed industrial conglomerates, transformed by the high-ROIC CG Power turnaround and now positioned across power infrastructure, precision manufacturing, and emerging semiconductor assembly — all structural tailwinds. ROCE of ~22%, conservative leverage, and Murugappa's disciplined capital allocation make this a genuine compounder. However, at 48x forward P/E with CG Power's market cap alone already exceeding TII's consolidated market cap, the price demands near-flawless multi-year execution. The risk of permanent capital loss is low (no fraud, no leverage excess), but base-case 10-year returns of 3–4x (~13–15% CAGR) are inadequate compensation at today's entry. Wait for a 25–30% drawdown before establishing a meaningful position.”