Wednesday, March 25, 2015

How Do You Play “Housing for all” Theme?

Housing for all is a thrust programme for the government. Six crore houses to be built over next few years. Swacch Bharat campaign is under focus of policy action. 100 Smart Cities to be developed. We keep hearing housing theme over the last few months. At the end of the day, who benefits in the corporate sector, if at all?

To my mind, we can group potential Beneficiaries of thrust on Housing campaign into the following categories:

  1. Housing Finance Companies are obvious (HDFC. LICHF, Gruh, Repco, Canfin, DHFL, IBH)
  1. Sanitaryware companies  (HSIL, Cera)
  1. Construction materials like
    1. Cement companies (ACC, Ultratech & lots of them);
    2. Tiles (Kajaria, Somany);
    3. Ply/laminates (Greenply, Greenlam, Century).
  1. Paint companies (Asian, Berger)
  1. Building ancillary products like
a.       Adhesives (Pidilite);
b.       Tanks (Sintex);
c.       Pipes (Finolex);
d.       Plumbing materials (Astral, Supreme);
e.       Kitchen sinks (Acrysil).

We are talking about housing and no real estate companies mentioned. I still don’t think they will boom.

List is indicative of potential business beneficiaries only and no way a comment on the stocks which is a different matter altogether.

In any case we all know, it takes many quarters and years for government schemes and announcements to come to ground and to percolate to actual P&L statements of companies.

1 comment: