Companies in the construction sector have always remained in the spotlight, not only for achieving social objectives such as ensuring that all citizens have access to basic services and amenities but also for generating significant employment and boosting connected industries through infrastructure development. Likewise, ITD Cementation India Limited, a small-cap civil construction company, has garnered attention, potentially attributed to securing substantial orders from esteemed clients, including a recent ₹1,001 crore order, or experiencing a robust rally driven by growing optimism that has drawn the focus of investors.
Let’s delve into the factors propelling this robust rally and assess its sustainability by examining the financial performance of the company, anticipating future headwinds and tailwinds, and the overarching outlook for the sector.
Company Overview
The Cementation Company Limited of the United Kingdom (CCL, UK), a member of the Trafalgar House Group, operated as a branch in India since 1931. In 1978, the Reserve Bank of India granted permission for CCL, UK to continue its activities in India, contingent on converting its India branch into an Indian company. Consequently, in 1978, it was incorporated as Cemindia Company Limited. In 2004, Italian-Thai Development Public Company Limited acquired it through a share purchase and sale agreement with The Cementation Company Limited and Skanska AB, leading to a name change to ITD Cementation India Limited.
This story is from the December 18, 2023 edition of Dalal Street Investment Journal.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the December 18, 2023 edition of Dalal Street Investment Journal.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Are Small-Cap Funds Still Lucrative?
While the high growth potential of small-cap funds is enticing, the investment comes with a significant downside. Compared to large-cap funds, small-caps experience deeper maximum drawdown during market downturns. The article examines the how, why and when of investing in small-cap funds
Small-Caps: Book Profits Or Remain Invested?
Our analysis of the performance of small-cap stocks indicates that while the broader markets are expected to rise, caution is advised regarding extreme valuations. Therefore, it is recommended to choose quality small-cap stocks based on thorough fundamental and technical research. The article highlights the reasons for doing so
Can The Global Equities Sustain The Bull Run In The Second Half Of 2024?
After four weeks of gains, the markets paused in the past fortnight, despite outstanding earnings from the Al leader NVIDIA. For the year, the S&P 500 remains up by about 10 per cent, and we view some consolidation after the recent strong performance.
Shifting Sands: Will FIIs Return To Indian Shores?
The Indian equity market currently grapples with a cloud of uncertainty, with volatility reaching its peak. Fils have been consistent net sellers for months, offloading a significant ₹1.20 lakh crore in 2024 alone. This raises a critical question: Is this indicative of a fundamental shift in their view on the Indian growth story, or are they contending with temporary headwinds? Mandar Wagh delves into the potential reasons behind Fil selling and explores when Fils might return to India
ON A SLIPPERY SLOPE
The recent ban on acquiring new customers online and the issue of credit cards has put a spanner in the operations of the bank. Given that the timeline for its operational turnaround is uncertain, the stock has lost its appeal
Resilience Rules The Roost
The key domestic indices reached all-time highs even though Nifty VIX, known as the 'fear gauge', has doubled in value over the past one month
Risk Profiling in Mutual Funds
Whether you lean towards equity, debt or hybrid investments, recognising your risk tolerance is paramount. By conducting a risk profile assessment, you gain foresight into potential investment risks, mitigating any future unease before it arises. Rakesh Deshmukh takes a closer look at the scenario to see how it works
"The Future Of Mutual Funds Looks Promising"
Given that the current landscape of mutual funds is dynamic and evolving, Rashida Kalolwala, Coo, Edelweiss Mutual Fund, states in this interview that the shift towards digitalisation and the emphasis on transparency are some of the factors that will further propel the growth of the mutual fund industry
ETF Vs Stock Liquidity
Exchange traded funds (ETFs) have undeniably revolutionised the investment landscape for both investors and financial services professionals alike. They offer opportunities to diversify portfolios, manage risk more effectively, and reduce investment costs. However, to fully harness these benefits, it's crucial to dispel confusion and misconceptions surrounding ETFs Liquidity. The article examines the working of ETFs, their liquidity and how investors can capitalise on them
Road To Prosperity Through Mutual Funds
In the pursuit of financial freedom and wealth creation, mutual funds have emerged as a beacon of opportunity for investors in India.
