just posting a recommendation on Orient Bells from Financial Express.
- Orient Bell
CMP 165
The company is into manufacturing of non-Vitrified and Vitrified tiles as well as sanitary products. The company acquired and merged with Bell Ceramics in December 2010. Post this merger, the company has emerged as the only one in the industry to have plants in North, West and South of India. The merger has been a good opportunity and will enable the company to grow inorganically at a much faster pace.
Investment Rationale
Strong government thrust: The government’s thrust on improving sanitation system in India has provided a new growth opportunity to the Indian sanitary ware and ceramic tiles industry. According to ‘India Sanitary Ware Market Forecast & Opportunities, 2017’, in the coming years India will witness huge improvements in the sanitation level. The industry is already growing at a fast clip and it has huge potential due to under-penetration. The industry is likely to witness high growth for at least the next 20 years before it saturates. Over 60% of the Indian population does not have proper bathrooms and toilets, and in the remaining 40%, the share of the organized industry is negligible. Implementation of GST is likely to provide a major fillip to the earnings potential of organized players like Orient Bell.
Disclosure : Not invested as of now/ Planning to invest on this stock,