We have recommended pokarna at 107 levels as of our Multibagger picks and recently have updated our note on blog also.
Very important read carefully
Big Opportuniy for Pokarna in Coming Months
As you know in recent months, the Trump administration has imposed tariffs on goods coming into the United States from China.
The quartz tariff has escalated in stages along with the tariffs imposed on other Chinese goods and services.
In fact the current tariff on Chinese quartz is especially high because it is seen as an anti-dumping measure.Just to put in numbers tariffs have gone as high as 330 % to 700% under certain quality, There are five levels of quartz tariff overall. In other words, a piece of quartz with a customs value of just $500 could end up costing more than $1800 from China
Whereas for India tariffs are just 2.67% to 5% depending on quality and type of Quartz for pokarna duty imposed is 2.67% lowest in india
Size of overall quartz market in USA Inr Rs 11,000 cr which was dominated by china with 51% share followed by Spain and India with just 6% share (around 1000 cr).
Over the next few quarters we will see a good market share shift from China to India in this segment thus leading to higher revenue and profits for already well-established player such as Pokarna
Also new capacity of quartz if already coming online in this month which will take quartz capacity 1.3 times higher company has spend 400 Cr on increasing this capacity and Mcap today is 400 cr
Hence we have increased our Weight from 10% to 20%
We won’t be surprised too see pokarna doing 1000 crore topline and 200 cr pat with Debt free balance sheet
With no capacity coming up in the next few months except pokarna we expect established players like pokarna to take a larger pie of the opportunity present
Also if you wish to get industry overview just listen to Asian granito concall which was done on 3rd July and is uploaded on research byte website asian granito has very small capacity of quartz and management is planning to invest in a big way to hike quartz production
We don’t have any view or position in asian granito nor do we recommend to buy but we have a very bullish call on pokarna
If you have any doubt regarding the same feel free to contact us 👍
Investment Horizon 12 Months
It is safe to assume that me and my family along with our clients have investment in pokarna and our views are biased
I AM NOT A SEBI REGISTERED RESEARCH ANALYST PLEASE CONSULT YOUR ADVISOR BEFORE INVESTING
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