Promoter buying after a long time
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Sharing some personal experience:
Iām in market for kitchen tops and during last two weeks I did number of market visits (Mumbai and Navi Mumbai markets) to select one. The options are (1) granite (2) Quartz (man made stone like structure) and very recently (3) Tiles. Cost-wise its granite, tiles and quartz - in increasing order.
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First of all, and little surprisingly, I did not see any sample of Pokarna/Quantra being offered in markets of Mumbai/Navi Mumbai. KalingaStone and AGL variety were available from Indian Mfg, at higher end I saw Ceaserstone and Deckton - both imported
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Most of the bigger dealers were offering all the above varieties, but most of them specifically mentioned that in Indian Quartz, light colours would be open to stains from Indian cooking and hence avoidable. If you still insist, they would ask you to go for dark varieties in quartz stone
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Price-wise Indian Quartz Rs.400 to 600/Sq Ft vs. Rs.1200-2000/Sq Ft for imported variety. Compare this with Granite starting range at Rs.90/Sq ft (mass-market), Rs.250-500 (mid-range) and Rs.500+ for high-end granite
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Quartz: Biggest disadvantage, apart from high cost is, you have to buy full slab (45-50 Sq ft). So if the dimensions doesnāt match, you can not buy say 60 sq ft in Quartz, you have to buy two slabs. In granite - you get and pay for exact requirement in 99% of the cases
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Second advantage for Granite is - considered rough & tough and suitable for Indian cooking (due to darker shades and structure, oil/haldi stains are not visible/ not marked on granite)
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Where Quartz wins is - number of shades, designs etc. especially marble-like designs (due to porous structure marble is not advisable as kitchen top ). Very even surface, and matt designs which you generally donāt get in granite
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Tiles as kitchen top is new variety and not many dealers are offering it, and have limited user reviews. So its too early to comment on their direct threat to Quartz as of now
So in summary
(1) there is a small, but growing market for Quartz in India, at least for kitchen tops
(2) it would not be very easy to replace/de-place Granite for kitchen tops
(3) tiles would be a second threat to Quartz in near future
Disclaimer: No holding
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What is stopping Pokarna to get into Quartz Kitchen sinks like Acrysil ?
Please share your views.
Sinks are there, but do not see much on company website!
Seems good times are here, given India shipping jumps 14x in January on YoY basis, flat on MoM. Also, Pokarna top-line is almost similar for Q4 FY20 and Q3 FY21, this means their shipped quantity should be seeing this jump starting to happen in Q4.
Overall the graph shows a huge change in market size which used to be seasonal but being exceptionally strong at this time, given winter might be slow for construction sector in US.
Disc: top holding
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On Quartz sinks is Pokarna is a direct competitor fro Acrysil ?
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This is to inform you that pursuant to Regulation 30(6) of SEBI (LODR) Regulations, 2015
read with Para B of Part A Schedule III, Pokarna Engineered Stone Limited, wholly owned
subsidiary of the Company, has started commercial production at its Unit 2, w.ef.
March 24, 2021.
Secunderabad, 24" March, 2021: Pokarna Engineered Stone Limited (PESL) is pleased to announce
the commencement of commercial operations of its second state-of-the-art quartz surface
manufacturing facility in the country. The new plant is located at Mekaguda Village in Telangana, India.
Equipped with the highest levels of process automation to support a wide range of Industry 4.0
standards, the factory supports PESLās objectives for eco-sensitive, sustainable production in keeping
with the highest global norms.
With a built up area of over 600,000 square-feet, PESLās Unit 2 is one of the worldās largest quartz
surfaces manufacturing facilities, equipped with most advanced āBretonstoneā technologies, from
Breton SpA of Italy, to produce Super Jumbo, Jumbo and Regular size slabs.
The new unit is equipped with a battery of multi-axis anthropomorphic robots to produce exotic natural
looking as well as studio designs and is also powered by a whole new generation of fabrication
equipment to ensure world-class quality with maximum speed and precision.
āItās indeed a memorable and a very proud moment for us today as we commence commercial
operations at Unit 2. This milestone will further increase PESLās capabilities to please its vast customer
base across North America, Europe, Middle East, India; from major existing markets to fast-growing
new marketsā, said Gautam Chand Jain, Chairman & Managing Director.
According to Paras Kumar Jain, CEO. āOur new unit is a unique hub of technology and automation
to deliver the best in class products for our customers and to further cement our leadership position in
the quartz surface industry.ā
Exported globally under the brand name of Quantra Quartz, PESLās surfaces and fabricated products
range from sinks and basins to shower trays and vanities and are now being launched in India.
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Market cap is still ~2.5 times the TTM salesā¦
ASI Industries also commenced production, however they will targeting India as per this release
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I was analysing yields on thier Cash & Cash equivalent and bank balances.
- If they are having Cash in Bank as they are claiming then why its not reflected proportional in interest income. Reason could be Cash is not available throughout the year but only on financial year ending. Appreciate if someone can ask management about same.
Average Cash + bank balance in year 2019-20
~ 9+25=34 crores whereas interest income was only 34 lakhs
1% yield and banks and liquid funds will give atleast 6%
I found Similar trend in previous years too
hello ,
i was going through the company ASI Industries website and products
and its been into Manufacturing since 1945
and has been listed from year 2000 ,
the company has completed a major capex
any idea why has this company underperformed for so long
any more fundamental inputs would be useful.
though Technically Now looks well placed for a good run.
Hi Mani, Please compare the Balance sheet of both, Main factor is the debt it holds, the debt is piled up because of very poor receivables which gives a doubt whether the sales is true.
Also the revenue growth and margins, if we can understand thoseā¦we can know why ASI is poorly price as of now.
But ASI has entered into Engr stones now and margins can increase, future growth possibilities is there but need to closelty monitor
I just roughly looked ASI now
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Since i did not find any thread on ASI INDS
Attaching monthly Chart for reference
any views are welcome
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While exploring the slab dealers in southern California, I learnt an interesting fact from Daltile sales person , she said Daltile now has its own Quartz plant in Tennessee, and doesnāt source it from anyone else except on special circumstances (she said ālike some exotic color thats specifically asked from a builderā) , I found it surprising because 4-5 years back I had confirmed with Daltile that they buy Quartz slabs from Quantra and sell. Did anyone know this already? while their capacity is increasing , it has lost a major customerā¦
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From latest Asian Granito (AGL) presentation:
This means Pokarna owns 32% of the total Indian quartz supplies (and AGL 18%). And there has been a 100% jump in Indian imports to US, in value terms, compared to past year, when it was not so bad anyway. (was at ~66% of peak EBITDA)
Yes, competition seems to be ramping up also. Hope is that premium quality of Pokarna meets the export requirements better.
Disc: Invested in both AGL and Pokarna.
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May be this could probably the reason for lower capacity utilization of Pokarna of its existing facilities. This will throw a challenge to Pokarna for utilization of its recently commissioned facilities.
Good catch up in the volumes : From past 5-6 months India has a strong supply side in terms of volumeā¦
India has a Good Numbers in Volume : Spain & Vietnam is the next competitor in line and you can see the value of India catching up compared to Spain & Vietnam. China trying to push in via Vietnam border to US - The numbers will go down as far i guess US customs will be having a close eye on the supply numbers.
Spain & Vietnam earns a big number in terms of value - Pokarna should do well this quarter result, awaiting for result arrival.
Containers is one risk issue due to covid around - there are hardly containers to export and if there are, then the cost of the containers are on high peakā¦ This might affect the raw material prices.
Quartz Eating the larger pie :
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