Cement and Steel Sector

Cement and Steel Sector

Both these sectors can outperform index in 2008.

Companies having backward integration with raw materials in Steel industry are set to benefit .

Steel prices are rising and will rise more in 2008. Raw material prices are also on the rise.

Biggest consumer China has also seen production cost go up significantly.

Indian Steel demand is robust and focus on infrastructure will keep it that way.

Gujrat NRE coke,sesa goa, Tata steel looks good in this sector.


Cement sector is going in for huge expansion to cope up with the demand, but the new capacities will start coming in from first quarter of FY09. Demand and price realization will remain firm in these scenarios. Some government has tried to curb the price rise in cement saying they will import cheap cement from outside. But cement prices are high across asia and so poses no immediate threat to local cement makers.

Till the monsoon kicks in around june-july. These 2 quarters can see huge construction activity.

India Cements, Grasim Industries , Shree Cements looks good if one want to enter this sector.

Indian Entertainment and Media Sector

Entertainment and Media Sector Overview

Entertainment and Media is going through a very exicting times. With challenges it is providing huge growth oppurtunities.

New technologies are evolving and convergence is the new buzz word.

This sectory comprises of various stake holders including Films, Television, Print,radio, music,mobile,Internet,studios,gaming,
animation,advertising,IPTV, DTH,

Mobile TV,content provider(Value added service, mobile money transfer),
production and distribution, multiplexes etc,etc.....




Indian film community has recieved industry status. Estimated at 4 billion dollar by 2011.







The whole sector is growing around an average of about 20% annually with Internet advertising showing highest growth of 40%.

Increased FDI limit is also providing boost to the industry.

Convergence of various entertainment platform will require more collaboration between various stake holders. Existing players are trying to gain foothold in whole value chain.

Eg : - ADAG :- Already in film production,distribution, multiplexes, radio, internet gaming etc...

Network 18 group :- stakes in various news channel, various websites and web content provider, internet advertising, JV with jagran prakashan for print media, Yellow Pages business etc.

With so much interest and huge investment flowing in this sector will be growing more than the Indian GDP.


Some Interesting Read :-
Industry Overview

Entertainment & media sector to grow 137% by 2010 : FICCI in news

Media and Entertainment


Previous Posts on Sectoral Overview :-

Infrastructure Funds and Sector Overview


Medical Tourism in India


Seamless Pipes Global Industry Scenario

Infrastructure Funds and Sector Overview

Equity markets are on high for past few years and this has woken up the mutual fund industry which was in lull.
Because of stunning stock market performance, returns on lackluster mutual funds is also glittering.
This has prompted various AMC (Asset Management company) to mop up new money through various New Fund Offers.
Sectorial Funds can outperform the market if the particular sector is of current fancy.
Same is the case with Infrastructure.


Infrastructure in general has tremendous scope for growth as our country needs huge developments in that area.
Fund houses are trying to cash in on this boom.

Following list shows various sectorial/thematic infrastructure fund from various fund houses.

Fund
AIG Infrastructure & Economic Reform Fund
Birla Infrastructure Fund
Canara Robeco Infrastructure
DBS Chola Infrastructure Fund
Escorts Infrastructure Fund
HDFC Infrastructure Fund
ICICI Prudential Infrastructure Fund
Kotak Indo World Infrastructure Fund
Lotus India Infrastructure Fund
Principal Infrastructure & Services Industries Fund
Sahara Infrastructure Fund - Fixed Pricing
SBI Magnum Infrastructure Fund - Series 1
Tata Indo-Global Infrastructure Fund
UTI Infrastructure Advantage Fund
UTI Infrastructure Fund

Investors has lot of options to choose from. He/She needs to be prudent in making choosing the right fund of his choice.
Lot of money is coming to this sector and fundamentally this is good investment.
It can give sustained growth for few years to come.

As we have discussed about the rewards from this sector, we also need to address the risk.

Risks
High growth may not be sustainable and may slowdown.
Competition is increasing because of lot of interest.
Many Indian companies are in fray with multinational joining too in the race.
Margins are under pressure because of fight to bag the project under their banner.
This poses execution risks. Bidding lowest [sometime unreasonable low] poses high implementation risk.

Stocks
GMR Infra
Punj LLoyd
JP Associate
Bhel
L&T
RIL
Few Power Generation and Utility companies.


You can check the order book, execution capability and funding ability of the company before zeroing or finalizing any particular stock.

Hope now after reading this post you will be more informed about investing/diversifying into infrastructure stocks/funds

Medical Tourism in India

Medical Tourism in India, also known as Health Tourism India, is a growing concept whereby people from all over the world visit India for their medication accompanied with a short holiday. The health care sector in India has witnessed an enormous growth in infrastructure in the private and voluntary sector. The private sector, which was very modest in the early stages, has now become a flourishing industry equipped with the most modern. state-of-the-art technology at its disposal.


As Indian corporate hospitals are on par, if not better than the best hospitals in Thailand, Singapore, etc there is scope for improvement, and the country may become a preferred medical destination. In addition to the increasingly top class medical care, a big draw for foreign patients is also the very minimal or hardly any waitlist as is common in European or American hospitals. In fact, priority treatment is provided today in Indian hospitals.

The Apollo Group, Escorts Hospitals in New Delhi and Jaslok Hospitals in Mumbai are to name a few which are established names even abroad. A list of corporate hospitals such as Global Hospitals, CARE and Dr L.V. Prasad Eye Hospitals in Hyderabad, The Hindujas and NM Excellence in Mumbai, also have built capabilities and are handling a steadily increasing flow of foreign patients. India has much more expertise than say Thailand or Malaysia. The infrastructure in some of India's hospitals is also very good. What is more significant is that the costs are much less, almost one-third of those in other Asian countries.


Key highlights:-

• Healthcare industry is the world's largest industry with total revenues of approx US$ 2.8 Trillion (2005).
• With global revenues of approximately US$ 20 Billion (2005), the medical tourism industry is one of the world's largest industry.
• India's cost effective treatment makes it an important player in this industry.
• India's high population makes it an important player in the Healthcare Industry. According to the Insurance Regulatory and Development Authority, the Indian healthcare industry has the potential to show the same exponential growth that the software industry showed in the past decade.
• In India, 80% of the healthcare expenditure is borne by the patients and that borne by the state is 12%. The expenditure covered by insurance claims is 3%. As a result, the price sensitivity is quite high and the high-level healthcare facilities are not in the reach of patients.
• Growing Medical tourism in India will be one of the major sources for foreign exchange.
• With increasing number of non-insured population in western countries and increasing healthcare expenditure to GDP resulting in people opting for treatment choices outside their country.

Seamless Pipes Global Industry Scenario

Stocks in this industry : Jindal Saw,Maharashtra Seamless, Welspun gujrat, man industries etc....

Source Excerpted From: ICICI Direct. Article from StockIdeas.org

Growing oil and gas demand across the world and the zeal with which oil companies are investing on adding pipeline infrastructure promise higher revenues for Indian steel pipes makers.

• Global demand-supply scenario favours Indian manufacturers

• Depleting crude reserves stimulating demand for seamless pipes

• Global demand – supply set to remain in favor of India…

• Depleting reserves stimulating seamless pipes’ demand …

• Booming oil economy to boost pipe demand
  

• US to be the largest consumer

• Asia to lead pipe demand with strong growth in energy consumption

• Middle East – an important destination for Indian players

• Gas transportation pipelines – a major boost

• Water resources management – another key area

• India set to benefit from global demand supply imbalance

Source Excerpted From: ICICI Direct. Article from StockIdeas.org