 "A key trigger for the domestic tile sector has been the steady growth in exports.")
Tile manufacturers in India had a strong April-June quarter (first quarter, or Q1), aided by robust volume growth and higher realisations. Although demand trends for the rest of 2022-23 (FY23) are expected to be healthy, there are multiple headwinds that could offset these gains in the near term.
While higher competitive intensity from Morbi-based tile makers could exert pressure on realisations, the bigger worry for leading listed players in the tile and bathware segment is a sharp rise in input costs.
Given these headwinds, some stocks in the tile and bathware (faucets and sanitaryware) sector have been feeling the squeeze.
