ITD Cementation Stock Analysis

Details

ITD Cementation is part of Italian – Thai Development Public Company Limited (ITD). The parent is the leader in infrastructure construction of Thailand for more than 50 years (24% market share) and one of the largest in South East Asia.

The Parent company is spread in countries like Bangladesh, Cambodia, Laos, Indonesia, Myanmar, Philippines, Madagascar, Mozambique and Taiwan.

In India the Company operates in different verticals like

• Marine Sector
  • Mundra Port
  • Adani
  • PSA Group
• Highway/Bridge/Flyover
  • NHAI
  • CIDCO
• Specialty Works
  • Punj Lloyd
  • Tata Projects
• Industrial/Building
  • NTPC
  • BHEL
• MRTS
  • Delhi Metro
  • Kolkata Metro
• Hydro Sector
  • Tata Projects
  • Hindustan Zinc

Stock Performance

Above is stock price performance of the Company on long term. It can be termed as cyclic stock which remains silent for five six years and then gives ten times return in short term.

So it is very important to time your entry and exit in this type of stocks. If people have invested in right level then they have made money else they have lost money in this counter. It also gives healthy dividend of 1%.

My Opinion

ITD Cementation is from Construction sector. It is Multinational Company operating in majorly in south East Asia. It has approx 50 percent market share in maritime structures. This monopoly in one construction area separates this Company from other generic Companies in this sector.

The Company operates in variety of Infrastructure areas and have undertaken good projects in this space. It has also grabbed projects of metro development which is one growing area in India. Exposure to Metro projects will help it in future growth.

Below is the order book status of the Company as of now

The Company is well suited for cyclic play instead of long term investment. If you can play the cycle well then you can get good returns from it. The stock is promising and can be tracked upon.

India will have lot of infrastructure project to invest in if it wants to grow from developing to developed country. So good companies operating in Infrastructure development will provide returns in played well.