Trade of the Month: Italtile vs Cashbuild
Both are solid firms, but Italtile did better than Cashbuild
The SA construction sector has been extremely challenging for a number of years and a lack of new home builds has hit many role players. But there was a degree of comfort for certain players from homeowners who made additions to or refurbished their homes.
Because of differing target market demographics and mix of products, some listed stocks did better than others. The two mentioned in this column are both well-known, profitable, highly cash-generative and well-regarded businesses; but Italtile has fared better over the past couple of years than Cashbuild, and IM expects that trend to continue into 2020.