Hi all
It appears the company’s biz performance should be ideally linked to housing market in the US. Housing market in the US has cooled down since the beginning of the year ( United States Housing Starts – July 2022 Data – 1959-2021 Historical – August Forecast (tradingeconomics.com))
However, SJPL has managed to see resilient growth. What is leading to this trend? Some hypothesis include
- Full service players like Dupont are losing share to Epilay (SJPL’s front), even if market is slowing down
- Slowdown impact would been seen as a lag, potentially in the coming quarters?
This is an important question to answer because interest rates have been low since the GFC. With rising rates, housing market could slow down in the medium term, and unless SJPL is doing something structurally different, it should also see a contraction in growth.
@harsh.beria93 @rupaniamit would appreciate your views since you seem to closely track the company.
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