Best Cement Stocks to Buy in India
India is the second largest cement
producer in the world, following China, and is also the third largest consumer
of cement and cement products. Housing & Real Estate demand a 65% share of
cement, followed by Public Infrastructure which requires 25% and Industrial
Development, which has a 10% demand for cement. While the pandemic halted many
construction projects, cement companies were forced to manage their costs. But
since the lockdowns were lifted, many projects have resumed and thus demand is
expected to grow. We must grab the opportunity to invest in
this sector and find the best cement stocks. Cement Industry is highly
capital-intensive and has huge fixed costs. It must be evaluated regionally
since demand may vary from region to region. Companies that can control fixed
costs of logistics and power consumption are the ones with higher profit
margins. Companies with plants spread across the country can control costs
related to logistics better than their competitors.
Net profit margin, 3 years CAGR net profit,
return on equity, debt to equity ratio, earnings per share, price to earnings
ratio, dividend per share, promoter’s shareholding, market capitalization, and
change in revenue and net profit are the fundamental analysis parameters we
will take into consideration to select best cement stocks for long term
investments.
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