India Cements Kerala Flood Effect and Cycle Reversion

Southern Players - India Cements and Ramco Cements posted bad results because their focus was on expansion rather than profitability which lead to a bubble in operating expenses. It got more hammered on the ground of pet coke ban. But pet coke ban is lifted now. The effect is still not factored in which will be very much positive anyways.

And now comes the Kerala flood, both India Cements, and Ramco Cements have huge exposure on Kerala. Calamity-stricken residents will be in the huge rush of repairing their home leading to an unusual demand for cement which will create lack of supply resulting in an increase of cement price as well as higher profitability.

Election 2019 will have synthetic effect anyways because of the affordable housing theme!

We have already bet on India cements on 98 levels. Let's increase the allocation to 100% now!

Technically, it is a consolidation zone. It can consolidate longer and then take off.

Kommentera:

Entered at 118