Probably the reason for the fall in stock price on Friday. There is such high information asymmetry. This might be a death knell for the company given they have just finished a huge debt driven capex.
Just a clarification, the final hearing is due on 4th December right? Also, the number looks just absurd. India is one of the least manufacturing friendly nation and these guys think that Pokarna got govt. benefits.
Regards
Kanv
Seems like the DoC was waiting for the 3Q results to see how much money they are making. May be just a coincidence. Hold a substantial position in Pokarna and havenāt sold out. Waiting to see how this plays out.
While ADD concern ongoing, I want to point out one issue among good H1 results supported by outstanding Q1 results of the company. On consolidated basis, current ratio is first time below 1. Current assets are 201 Cr Vs current liabilities of 232 Cr. When we deduct inventory of 92 Cr from current assets - situation is of quite concern. Good reduction in outstanding receivables may be one of the reason for lower current assets. Any other thing I am missing out?
Disclosure: holding position for more than 4 years and watching situation.
This situation reminds me of what happened with Noida toll road company. Sometimes S#it happens in investing, itās advisable to diversify to 15-25 stocks and not to concentrate too much in a mid cap
Any thoughts why the market is discounting the stock so ruthlessly ?
The ADD is only for US and US is its major export market but stock has got pounded below its book value.
Stocks are like bonds, but when growth stops or growth becomes too uncertain theyāre treated worse than a bond. In current environment, Pokarna might be too risk a bet. Almost like playing Russian roulette, I think 50% of their sales come from US markets.
In the current business the revenue share form US could be a lot more.Their major revenue is now from Quartz which is mostly sold in US, i had a discussion with CEO, their new capacity of Quartz will also serve US market. Sad about the trade war.
"However, the USITA announced it will continue to review additional information from Pokarna concerning purchases of land like the property leased by the company. The data arrived too late to be considered as part of the preliminary tariff decision.
A slight adjustment in benefits accrued by Pokarna on duty-free imports of capital goods raised the total rate for Pokarna from 4.32% to 83.79%."
The good results is because, the chinese companies are levied with 500% duties and intermittently Pokarna was levied with only 4% which was a wrong calculation by US trade team. The big gap in Chinese and Pokarna cost was the reason for increase in sales.
Now the issue has reversed and ADD duty is yet to be decided. Better to wait and watch, instead of adding the stock now.
The local US fabricators who import quartz from CHina and India are also huge in number who will suffer due to reduced imports.
Read another article that US and CHina are discussing about slowly reducing the trade war. All are speculation. I am closely watching to take a plunge when situation becomes clear.
THings might also change, but may not be in near future
But as of now, its very dangerous to enter or average out. After ADD, the stock might touch 40 to 50 levels i presume considering the future profitability
Exited the stock today after booking almost 50% loss at 87 Rs. I averaged it up after initial CVD announcements. I think rise in CVD might be the precursor of what is about to happen in first week of December. I had anticipated while buying the stock that I might be able to find exit after any adverse announcement but I was proven wrong.
No regrets since risk reward was deeply in favour after 4.32% initial CVD announcement.
Regards
Kanv
Isnāt there a chance for appeal ? Since these are only preliminary CVD ?
Youāre not alone 
After CVD declaration my plan was to take position and watch price volume action until last week of november and take exit if it is not bullish before ADD deadline.
I had also taken a position after initial CVD declaration considering the risk reward ratio but the āministerial errorā came in as a googly and stumped!
I exited as well recently. Letās see how this turns out for the company!
Putting my 2 cents in before December 4th:
The quartz products of this company interest me as a long term play.
For new investors, the proposed US tariffs may currently be offering a great entry opportunity if not implemented (stays at 4%).
Even technical analysis timed entries have led to at least two recent losses when using monthly RSI and ADX/DMI charts. May have to wait out the next few entry opportunities or act on the announcement on December 4th.
Iām not invested but I am tracking this company after recently reading about it on ValuePickr.
Iām not SEBI registered so please donāt take my commentary as investment advice.
Just tried to get the news as we were suppose to get some news on 4th December but didnt find anywhere and also stock hasnt reacted today.
Can anybody post what was the verdict?
e529d8c2-c97f-4653-9ef4-8ea530f2b39d (1).pdf (68.6 KB)
Anti dumping duty at 2.62%
This is only prelim determination and final determination of both cvd and ADD is on next year june
Will this cause decreased duty rates for China and the same existing for India, which will give more advantage to China?
Final hearing is scheduled in Apr-20 and any other matter not discussed so far can be submitted by May-20. Hopefully, the new plant will be up and running by then.
Results are announcedā¦ http://www.bseindia.com/xml-data/corpfiling/AttachLive/993649c2-d9c5-46a1-8511-ca17546302fc.pdf
Did the company say why top line dropped so much in Q3FY20?