I had a brief look at HIL.
Though the numbers in terms of ROCE and valuation look attractive, couldn't see much growth coming in.
Below are some stats from latest AR:
mkt share HIL-Growth industry-growth Revenue share
Fibre cement sheets 20% 13% 5% 80%
AAC blocks 26% 100% ??
Aerocon panels 58% 21% 16%
Thermal insulation 65% 7% 5%
Dependent on Rural income which in turn is dependent on monsoon.
Dependency on Govt housing schemes (low spending ).
Company being already market leader in most of its segments, capturing share from other players seems unlikely given the fact that management has again & again
expressed its concerns on competitive pressures.
So with <10% growth in the industry, growth seems to be minimal.
Please share what do you think are the key growth drivers ?
And how is the AAC blocks and panels business shaping up ?