Volatile ride for Pokarna owing to fear of antidumping duty

Pokarna Limited, a leading granite exporter which is the only granite company in India to be fully integrated from quarry to marketing has gone through a roller coaster ride in recent times. The major revenue of Pokarna comes from the US markets (nearly 98 per cent) and quartz contributes nearly 68 per cent to overall revenue. The United States International Trade Commission (USITC) has determined a reasonable indication of material impact on the US market owing to the import of quartz from India and Turkey which may lead to the imposition of anti-dumping duty on quartz.

The stock of Pokarna hit its 52-week high of Rs. 199.05 apiece on May 28, 2019 but after this development, the stock went down nearly 35 per cent to touch its 52-week low of Rs. 120.5.

However, on Monday the stock of Pokarna stage a recovery and surged nearly 17 per cent to touch an intra-day high of Rs. 144 per share as against its previous close of Rs. 123.

If any additional duty on the import of quartz from India is levied, it would be a big concern for players like Pokarna who earn major revenue from the US market. Going forward, it would be interesting to watch what decision USITC would take.