Anti-dumping duty puts plywood stocks in limelight.

MUMBAI: Shares of companies including Century Plyboard, Rushil Decor, Uniply Industries, Greenply Industries, Mangalam Timbers and Greenlam could be in focus in the coming months as the government imposed a heavy anti-dumping duty on imports of medium density fibre board (MDF), mainly used in decorative furniture.

Anti-dumping duty on plain MDF Board — known as customwood or craft-wood — will be levied on boards having a thickness of 6mm or above and will be valid for five years. "The duty is highly positive for laminate and plywood stocks as these companies may be able to improve their business margins in the coming quarters," said Arun Kejriwal, director, KRIS research. "Import of MDF from China, Vietnam and Indonesia had killed the competitiveness of domestic companies, which now would be able to upgrade production technology and bring down cost."

Shares of Mangalam Timber, Greenply Industries, Uniply Industries, Rushil Decor, Greenlam and Greenply Industries among others have gained 4-30% in a week. Analysts said the total market size of laminates and decorative veneer in India is Rs 5,000 crore with an unorganised market forming around 30% in 2015 compared to 40% in 2013.

Source : economictimes.indiatimes.com