Tile stocks decline due to weak demand and pricing pressures

Tile stocks are declining as companies face weak demand and pricing pressures. Major tile makers like Kajaria Ceramics and Cera Sanitaryware have seen their share prices drop 24-32% this fiscal year, hitting new lows in March. Earnings for the first nine months of FY25 fell 14.2% year-on-year, impacted by sluggish demand and high freight rates. Although freight costs have decreased, exports remain uncertain, and competition from Morbi players is increasing. Management forecasts for volume growth have been lowered, with Kajaria expecting 8-9% growth, down from double digits. Brokerages have reduced FY26 earnings estimates for tile makers, reflecting ongoing challenges in the market.