Cera Sanitaryware rallied 8 per cent to Rs 2,934, while Kajaria Ceramics gained 4 per cent to Rs 600 on the BSE in intra-day trade today. Somany Ceramics, too, surged 8 per cent to Rs 249, trading close to its 52-week high level of Rs 252.85 touched on January 2020. In comparison, the S&P BSE Sensex was down 0.23 per cent at 43,255 points, at 12:49 pm.
The central government on Thursday announced increasing the budget outlay for urban housing (under the Pradhan Mantri Awas Yojana – PMAY). The additional Rs 18,000 crore spending under PMAY will help funding for stuck housing projects. As the real estate sector is connected with many others allied sectors the move is likely to boost demand in multiple sectors including steel and cement products.
Meanwhile, the ceramic tiles companies reported resilient July-September quarter (Q2FY21) numbers as organised tiles players exhibited stronger recovery back to pre-Covid volumes. Anti-dumping duty levied on China by many countries (including the US, Brazil, Indonesia) along with “China plus one” strategy have favoured Indian tiles and sanitaryware manufacturers, due to which Morbi has become an export hub for unorganised units there.
Also, dealers are favouring organised players in the domestic market with better stock availability, convenience to customers at its exclusive showrooms in uncertain times of Covid-19 pandemic, and absence of deep discounts/better pricing from Morbi players. The sustainability of these key trends will be the key monitorable, analysts at ICICI Securities said in a note.