The Directorate General of Trade Remedies (DGTR) has recently imposed anti-dumping duties on several industries to counter unfair pricing and support the local crane industry. One of the industries added to the list is cranes. Let’s take a closer look at this development here.
According to sources, the Directorate General of Trade Remedies has imposed anti-dumping duties on imports from certain countries, aiming to support key players in India’s construction equipment and agricultural machinery sectors. However, the overall effect will depend on factors like the exact duty rates, how foreign manufacturers respond, and demand trends within India’s construction and infrastructure markets.
Benefits of Anti-Dumping Duties?
- Protect Against Unfair Competition: They prevent foreign manufacturers from selling products at artificially low prices, which can hurt domestic businesses.
- Support Local Manufacturing: With reduced price pressure from imports, Indian companies can increase production and expand operations.
- Improve Profit Margins: Domestic firms can maintain healthier pricing and margins without being undercut by cheaper imports.
- Encourage Investment: A more stable and fair market environment attracts more investments in R&D, technology, and infrastructure.
- Boost Employment: As Indian manufacturers grow, they generate more jobs across production, supply chain, and related sectors.
- Promote Make-in-India Initiative: These duties align with the government’s push to encourage local manufacturing and reduce import dependency.
Here are the stocks to look out for
Action Construction Equipment Ltd
ACE is a leading Indian manufacturer of construction and material handling equipment, including cranes, forklifts, loaders, and agricultural machinery. With a dominant position in the domestic crane market, ACE plays a crucial role in infrastructure and industrial development across India. The anti-dumping duties on imported cranes will reduce pricing pressure from foreign competitors, allowing ACE to strengthen its market share and improve profit margins. The company is the world’s largest Pick & Carry cranes manufacturer with over 63% market share in the Mobile cranes segment in the country.
The company shows strong financial performance with a ROCE of 40.1% and ROE of 28.6%. Its stock trades at a P/E of 32.6, lower than the industry average of 37.6. It has delivered impressive profit growth of 51.1% CAGR over the last 5 years and maintains a solid 3-year average ROE of 26.8%.
The company’s revenue declined by 11.19 percent from Rs. 734 crore to Rs. 652 crore in Q1FY25-26. Meanwhile, the Net profit rose from Rs. 84 crore to Rs. 98 crore during the same period.
Escorts Kubota Ltd
Escorts Kubota Ltd is a key player in the Indian agricultural and construction machinery space, known for its advanced tractors, engines, and construction equipment. The company combines Escorts’ strong domestic legacy with Kubota’s global technology expertise. The duties will support Escorts Kubota’s crane and construction equipment segment by reducing cheaper imports, enhancing demand for locally manufactured equipment, and promoting growth under the Make-in-India initiative.
The company has a low debt-to-equity ratio of 0.01, showing strong financial stability. Its stock trades at a P/E of 34.7, slightly below the industry average of 38.9. It has delivered solid profit growth of 21.5% CAGR over the last 5 years and maintains a healthy dividend payout of 19.2%.
The company’s revenue declined by 2.86 percent from Rs. 2,574 crore to Rs. 2,500 crore in Q1FY25-26. Meanwhile, the Net profit rose from Rs. 302 crore to Rs. 1,397crore during the same period.
Written by Sridhar J
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