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ITE's been getting smashed on the broader consumer slowdown, but building materials are actually sticky when rand weakens like this. Input costs hurt margins but volumes should pick up once rate cuts start flowing through, probably next year. Long-term view hasn't changed, lot of noise right now with load-shedding killing the construction sector short-term.
Building materials retail is cyclical but the structural demand in SA isn't going anywhere, loadshedding or not people still renovate and build. ITE's been beaten down on sentiment but at R8.51 you're getting a player with actual store footprint and supplier relationships that took years to build, not some concept. Margins compressed sure but once the housing cycle turns this thing has serious upside, been through worse cycles and came out fine.
imo the building materials space got hammered but ite's got actual store estate and a captive customer base. fwiw their last results showed decent cash generation even with load shedding headwinds. could be wrong but at r8.51 this feels like panic rather than the business actually breaking.
ITE getting hammered on weak demand signals, retail is just not moving in this environment. Sanitaryware volumes down, margins compressed. Compare that to Afrimat or Cashbuild, those guys have pricing power ITE doesnt seem to have. Struggling to see the catalyst here unless construction picks up properly.
Picked up some ITE at 8.65 this morning before the pop, reckon the housing market chatter is bringing some life back to these retail plays after they got hammered last year.
ite sitting at r8.49 and people sleeping on the building materials recovery story here. ceramics and sanitaryware demand gonna spike when construction picks up, look what happened to bids and construction stocks when sentiment shifts. been holding since the dip and this is a multi year play, best is yet to come!!
ITE has been getting hammered but look at the property cycle, load-shedding is killing new builds short term but once Eskom sorts itself the construction rebound will be massive. Store network is already there, just needs volume. Housing shortage isn't going away, sanitaryware and tiles aren't discretionary, people still gotta build and renovate.
ITE sitting at R8.49 is decent value if you reckon the building materials cycle picks up. Sanitaryware and tiles are boring but people always need them, and once load-shedding sorts itself the construction side should move again. Held this for years, not expecting fireworks but the dividend yield keeps it honest.
ITE got hammered 3.14% today and honestly the housing slowdown narrative keeps weighing on the stock. Until we see actual foot traffic recovery or management guides revenue growth again, this remains a show-me situation rather than a buy.
Interesting numbers on ITE at R8.90, basically where it was pre-covid in real terms. Property market still flat but at least load-shedding hasn't killed the DIY renovation thing entirely, fwiw. Management's been cutting costs which helps margin, but till we see actual volume growth in store footprint it's just treading water imo. Worth noting the sanitaryware side is a bit more resilient than pure tiles anyway.
ITE sitting at R8.90 looks interesting if you believe building materials demand picks up when load-shedding eases and construction activity returns. Tiles and sanitaryware are defensive but cyclical, and the housing market recovery could be a real catalyst moving forward. Risk reward compelling at these levels, more eyes on the prize.
ITE sitting at R8.90 is decent value given the construction recovery we're seeing. Retail has been hammered but tiles are a defensive play when people start fixing up their places again. I've been nibbling on dips here, good day to top up if you believe in the residential building cycle bouncing back.
ITE's modest 1.38% pop today off R808 feels disconnected from the broader retail headwinds. Has anyone run the numbers on what implied volatility across the June puts would price in for earnings, or are we still assuming the housing recovery narrative holds enough water to justif
ITE at 800 bucks is still moving sideways but honestly the home improvement thing should come back when the economy stops being so sketchy, so I'm holding longer term. Might not moon but feels like the kind of thing that bounces when things normalize again.
Eish, Italtile dropping 2.80% today, but is this a chance to get in for long-term or should we stay away from the building materials game right now?
Italtile's structural headwinds remain acute given the cyclical nature of SA residential construction and the persistent real rates environment that continues to suppress discretionary spending. The equity has compressed to levels that price in extended demand weakness, but until
Took a small position in ITE at 880 this morning after watching it consolidate around 865, reckon the building materials tailwind could push this higher but I'm not betting the farm on consumer discretionary right now.
ITE's been relatively flat today at R877, but I'm curious whether retail property exposure through their store estate is enough to justify the valuation when discretionary spending keeps getting squeezed. Are folks here viewing this more as a property play with retail earnings at