Summary: The brokerage has maintained a hold rating on Kajaria Ceramics and a buy rating on Somany Ceramics.
Mumbai: The Gulf Cooperation Council’s (GCC) proposal to slap an anti-dumping duty of 40-106 per cent on Indian tile imports is likely to dull growth visibility for Indian tile companies which are already seeing tepid demand, said Edelweiss. The brokerage has maintained a hold rating on Kajaria Ceramics and a buy rating on Somany Ceramics. “The GCC ADD (anti-dumping duty) on Indian tiles imports is more severe than that on Chinese imports, which are likely to face an ADD of 24 per cent. Naturally, this would make Indian exports unviable,” said Edelweiss. The duty is likely to pressure domestic players in the near term as GCC countries account for a major share of Indian tiles exports, the brokerage said.