Most of the categories have seen weak sales in the last 1-2 quarters plus build-up of channel inventory; Premiumisation is increasing (even in tier-II/III cities), especially in tiles and sanitaryware; Century Ply managements believe that the long-term demand drivers are intact and almost all of them have aggressive expansion plans; October was extremely weak, given the festival season-led shortage for construction labourers, and companies are launching new products and investing in brand/reach.
Well established brands with strong distribution architecture would be long-term winners, as home building material categories expand in scale amid rising brand awareness across India.
One can ADD on Decline and if you are already holding the stock, please continue to hold.
