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ICICI Securities: Building Material Segment Check - Turnaround Themes To Play

Somany Ceramics, Visaka Industries and Greenpanel Industries are the ones to watch out for in India’s building materials segment.

Construction material sit on the building site (Photographer Rolf Schulten/Bloomberg)
Construction material sit on the building site (Photographer Rolf Schulten/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

In the past two-three years, we have seen a few business models in the building material space succumbing to the mounting pressures of muted demand and liquidity woes resulting in severe market cap disruption.

Considering - 1. faster than expected volume recovery post Covid-19,

2. considerable balance sheet strengthening post the pandemic (which otherwise would have taken considerable time), and

3. cost-cutting initiatives undertaken by the covered companies, we put forward three turnaround themes – Somany Ceramics Ltd., Visaka Industries Ltd. and Greenpanel Industries Ltd.

We believe these companies have the potential to not only beat the benign (street) earnings expectations, but also see significant improvement in their balance sheet quality leading to strong potential for rerating.

Click on the attachment to read the full report:

ICICI Securities Building Material Thematic Oct20.pdf

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