June quarters results being released too late - there might factors that board wanted to introduce results during correction so that any cuts/bruise to stock can be acceptable.
The realization of Quartz tiles is majorly after May-June because the import duty realization was released on May-June.
Disc : Reduced stake, will wait till this week for the next for re-entry.
I might be wrong - board members can provide your views
Pokarna issues are excellent example of real life business not working as per excel sheet calculations, The dynamics and complexity of real world are at another level. For retail investors, its pure luck that it works out for them.
True, esp. for company almost totally dependent on exports, global competition and various trade barriers! But fundamentally Quartz it seems is a better product overall than just stone (except for heat resistance maybe). Just look at the valuation for Quartz sinks (Acrysil) which is 3x of Surfaces (Pokarna).
If this material can work in place of both stone/granite and stainless steel, it is quite good!
Pokarna has the right tech, but management is bit distracted by other ventures which they are now hopefully selling off in some time. India is the best sourcer and they do the basic raw material production themselves, which may add to risk but overall material quality requirement is not that high. With China out of the race and maybe difficult for others also, such as Turkey, the booming export market is there for good growth.
If they can gain more business locally then that will be even better of course.
Disc: invested
Really bad results as expected for Q1 FY21, swings to net loss of 9 Cr from 30 Cr profit (YoY).
https://www.bseindia.com/xml-data/corpfiling/AttachLive/b89b7a95-15fb-4897-9914-92fe3bba5e3c.pdf
The results are worse than I had expected. Sadly the management has stopped doing conference calls and we canât ask important questions.
Sir any idea why this bad set of nos. Is plant was effected or shut down due to corona
Looks like Covid situation hit them badly, 2 months were total washouts. Can only imagine that even June was also at sub-par capacity, roughly 50%. This fits with the YoY drop of 80% in revenues for the quarter.
Yes sir seems correct. But at the same time ASIAN granito was exporting quartz to the U.S
Why is the share price going up inspite of the bad results? Is market expecting a good Q2?
As definite the results were bad - going ahead there will be a better outcome.
Tailwinds : Anti dumping duty to Indian Quartz are at 2-3%
Sales - Sure to find out in next Quarter
Company - Has extended its capacity to double already running at 100% and if new capacity is completed as earliest then we can see double growth.
Scuttle Butt :
USA Sales
Recession/Liquidity in US markets
Price Entry barrier
Nippon MF has purchased 7% stake in Pokarna. As per exchange filing.
As per Stoneupdate MagzineâŚCopying as it is from Stoneupdate Magzine
The General View: Julyâs hard-surfaces import-value total of $329.5 million topped June by 33.1% â just barely short of increasing by a third. COVID-19 is making a foolâs game worldwide of optimism based on early numbers, but hopefully this recovery will remain strong for the rest of the year.
The Expected: Quartz-slabâs rebound in July, with its 10.1 million ft² besting June totals by 44%. Both India and Turkey seem to be getting back on track; the two increased shipments by 1.3 million ft² in one month.
The Unexpected: Granite (35.5%) and marble (50.9%) showed better-than-average growth in import values from June to July. Banking on early numbers can be dangerous, but granite could be reversing a slump ⌠especially with its 124K in metric tons for July surpassing June by 49.5%. Marble-shipment volume in July jumped 39.6% from June.
The Strange: The increases in July traffic at U.S. ports-of-entry didnât raise all boats equally after unloading the freighters. The volume of porcelain shipped to the United States increased 18% from June to July; thatâs still good news, but well below other major hard-surface sectors. Travertine, meanwhile, trudged from June to July with shipments growing by only 3.7%.
Next Month: How long will the good news last? August (and September) should tell whether the uptick is either a one-time rush or a steady trend.
They already had 7% stake. Now they increased it by about 0.2% purchasing around 50k shares.
How to read June 2019 what it mean buddy
Any recommendations for Pokarna.
Please share any references for anti dumping trigger.
As mentioned in the link posted by @axiskumar July has seen a good jump in US exports from India for Quartz slabs. Of course, this is still nothing extraordinary because the base of June 20 was exceptionally low due to covid/lockdown but its good to see a strong trend towards normalcy.
In the recent concal of Asian Granito, the company sounded extremely bullish on Quartz export. It was clearly stated that it is a 5000 Cr opportunity (only for US) due to the shift from China and they are no 2 in the country currently in terms of Quartz export and are planning for a 2x increase in capacity over 24 months, which will make them as No 1.
My understanding is that Pokarna is the current No 1 in terms of Quartz and with new addition of 1.3x they will have a significant opportunity to tap this opportunity. As they have the capacity at hand to utilize this opportunity
However, the above July data shows export to US is around 90 M but China is hardly exporting anything now. So the opportunity has already moved to Spain, Vietnam etc . Unless there is some evidence that Spain/ Vietnam are expensive , I am not sure why would this move to India.
What am I missing here ? Any guidance
Also why would someone like to put a capex plan now in this scenario to expand when Cash is King. This is what is driving me to dig deeper. Any inputs / suggestions are welcome
Disclaimer : Have a small token stake in the company and willing to exit/add depending on further analysis
In AR they have mentioned that new greenfield expansion is delayed by 9 months due to covid.
Earlier it was planned in April 2020 and now think Moved to Dec 2020
This need to be checked once, may be they are referring to earlier delayâŚin one of the interview, Mr Prakash Jain mentioned that the plant is ready and covid has started
