Institutional investors are trimming their exposure to construction stocks as they expect higher interest rates to put pressure on their bottomlines at least for the next two quarters. A quick look at the financial performance of mid-cap construction companies in June 2011 quarter reveals many are reeling under the pressure of rising interest.
Almost half the operating profits of most mid-cap companies have gone into servicing the huge debt burden on their books. This may increase, going ahead, say analysts……………………………………….Full Article: Source