Sunday, August 22, 2010

Granite - 125/450 granite stone varieties established from India

There are 450 granite varieties available in the world market of which 125 varieties are from India. India accounts for 20% of the world granite resources mostly concentrated in Karnataka, Tamilnadu, Andhra Pradesh. There are so many organised companies established in this sector catering to the world by its 100% export units.

Due to the slowdown in the construction segment all around the world, the companies have been beaten down. With the recent build-up of confidence we could hope for its exports improvement.

Following list of companies doing well according to the numbers:

Name Face Value Current Price Book Value PE EPS Market Cap(crs) Annual Sales (crs) Debt/Reserve
Associated Stone Industries (Kotah) Ltd 5 40 105 7.2 5.57 53.16 159.93 0.42
Aro Granites 10 52.25 95 4.82 10.84 53.3 131.13 0.54
Divyashakti Granites 10 33 38.28 4.44 7.45 34 30 0
Asian Granito 10 60 99 6.43 9.36 126 387 0.64
Glittek Granites 5 2.46 5.97 16 0.15 6.23 17 6.36

So, what is the reason for these companies shares not increasing on the bourses. We can find the following reasons
  1. Ad-hoc licensing policies of the governments
  2. Fragmentation of leases
  3. Political interferences
  4. Lack of availability of advanced technology in mining and usage of modern mining machinery: Quarring technology and Dimensional block production
  5. Poor quality of roads
  6. Losing the market to China, Brazil
A question comes, so which stock to buy for long term in this sector?
You can decide from the list provided above (the list may contain limited number of companies, there may many companies listed). But I like these companies. As one should not have any kind of influence on other's stock purchases, right! so you decide yourself.

References
  1. Stones of India
  2. Indian Granite Sector Progressing Towards Supreme Heights
  3. CAPEXIL
  4. Wrong policies stall progress

2 comments:

  1. A Technical Check
    http://www.dstreet.in/Markets/ArticleStory.aspx?ArticleId=87&CategoryId=37

    ReplyDelete
  2. Aro Granites, Asian Granito, Glittek Granites are shining. Of all, Glittek has given 100% profit from the price mentioned on this blog.

    ReplyDelete