Building Materials Conf.: Ceramics - Trends & Strategies, post COVID

Ritesh Shah, Analyst- Building Materials, Investec India hosted Mr. Abhishek Somany, the MD of Somany Ceramics, to understand potential trends and strategies, post COVID. Demand trends are uncertain and priority remains on WC discipline, supporting dealers, and to make good of higher exposure to Ex tier-1 cities. Exports could move surplus Morbi capacity away (only gradually). Pricing power for the sector remains elusive and it will be a function of cost curve movement (gas prices), govt.’s thrust on tax compliance, export trends and local demand. Earnings for Ceramic companies would remain challenged in the near term, though efficient capital allocators should see a re-rating in the long run.