An employee arranges tiles before packing into the boxes at production facility. (Photographer: Asim Hafeez/Bloomberg)

Tilemakers Crack But Analysts Remain Bullish. Here’s Why

Shares of India’s three listed tilemakers tumbled in the last six months. Yet, analysts remain bullish on them.

The stocks fell in the range of 38-60 percent since April, according to Bloomberg data. Asian Granito India Ltd., the smallest among the three, has no ‘Sell’ rating. It also has the highest percentage of ‘Buy’ ratings compared to its two peers and offers a potential upside of 72.3 percent. Its larger peers Kajaria Ceramics Ltd. and Somany Ceramics Ltd. have one ‘Sell’ call each with an upside potential of nearly 55 percent and 64 percent, respectively.

Edelweiss is upbeat on the sector as it expects the benefits of e-way bill implementation and the government’s push towards affordable housing to materialise for the tilemakers in the long term. It also expects their earnings to grow at an annualised rate of 16.5 percent over the financial years through March 2017 to March 22.

Tilemakers Crack But Analysts Remain Bullish. Here’s Why