I was analyzing the cement industry and realized for the first time what cyclicality means in its true sense. This industry posed a lot of challenges, it chew my head, made me study harder, and finally gave me a better understanding! I would like to share some of that wisdom and experience with all of you.
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thanks
ReplyDeletecool observation
Ghanshyam
Good inference and very well written and will help the followers in analyzing the cement companies. One thing I would like to add here is that the cement industry is highly correlated with the performance of the construction sector which depends on the overall economic performance of a country. You must have noticed that cement companies don't perform during a downtrend. So before you go for any forecasting about a cement company, it is important to take into consideration the economic outlook of that country in next couple of years.
ReplyDeleteWell, your blog is easy to read and very didactic. I look forward to seeing at least one blog from you everyday.
Well analysed and written. However I would treat an export ban as inconsequential considering the sheer cost of transportation. Hence cement is a pure domestic play.
ReplyDeleteDear Puneet,
ReplyDeleteThanks. I agree that exports don't form a very major part of this industry. But the point I was making was that there is a regular interference of govt. from time to time.
Regards,
Charu.