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Construction sector Q2FY21 review: Back in action, time to hunt bargains

After a 45 percent year on year drop in revenues, construction companies are getting their rhythm back, with key bottlenecks out of the way

November 25, 2020 / 03:06 PM IST
Construction sector Q2FY21 review: Back in action, time to hunt bargains

PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook

Highlights - Sequential improvement in execution led to higher growth - Labour and work on site issues resolved, aiding higher execution - Margins improve on higher base led by lower input cost - Earnings outlook remains strong backed by strong order book - Stick to companies with strong balance sheet, orders and execution track record The June quarter was the worst quarter for the entire construction sector and the companies in our coverage had suffered a nearly-45 percent year on year drop in revenues. However, things have improved subsequently....

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