Ceramics Sector Update - Ceramic players call off strike-Positive for organized players - Emkay

- Morbi ceramic industry which was on strike since 27th November demanding cheaper gas and reduction in excise duty and value-added tax (VAT) has called off the strike after receiving assurance from the state government / PMO

- This development is likely to have positive impact on organized players since it will lower the cost advantage enjoyed by unorganized players due to use of coal gas

- Plant shut down to have adverse impact on production / sales in Q3FY14 however we expect margins to improve going forward

- We maintain our positive view on Kajaria as the company remains the largest beneficiary in organized segment due to its leadership position.

Source : Equity Bulls

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