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Entry Price

123.00

Target

140.00

Recommend Date

28-06-2019

Return

13.82 %
BUY

Date : 28-06-2019

In its June 24, 2019 press release, the United States International Trade Commission (USITC) determined reasonable indication of material injury caused to the US market due to imports of quartz from India and Turkey. The quartz division contributed ~68% to overall revenues worth | 462.2 crore in FY19. It derives almost entire revenues from the US market. While the matter will be further investigated by the US Department of Commerce, the affirmation by the USITC is sentimentally a negative development for Pokarna and could remain a key overhang on the stock. Nonetheless, while we await further clarity on the matter, it is difficult to quantify the impact of this development on Pokarna’s earnings till any announcement regarding the quantum of antidumping is made by the US.