Synopsis:
Carysil Ltd may face business impact as the US imposes 50% tariffs on kitchen cabinets and vanities, effective October 1.
The shares of Small-Cap Company, specializing in manufacturing and exporting a diverse range of premium kitchen and bathroom products, fell by upto 9 percent following Trump’s new tariff blow on Kitchen Cabinets and Bathroom Vanities.
With a market capitalization of Rs. 2,217.67 Crores on Friday, the shares of Carysil Ltd declined upto 9.59 percent, reaching a low of Rs. 768.15 compared to its previous closing price of Rs. 849.70.
What Happened
Carysil Ltd, engaged in manufacturing and exporting a diverse range of premium kitchen and bathroom products, is in focus following recent US tariff announcements. The Trump administration has imposed a 50% tariff on kitchen cabinets and bathroom vanities, along with a 30% tariff on upholstered furniture, in addition to the 100% tariff on branded and patented drugs.
These tariffs will take effect from October 1, and as per Carysil’s FY25 their 21.5 percent of its consolidated topline came from the US markets. The imposition of tariffs could potentially make them less competitive and impact the company’s sales. This may result in reduced revenue from the US market, margin pressure, and the need for the company to explore alternative markets or cost-saving measures to offset the impact.
Company Overview & Revenue Drivers
Carysil Ltd is a leading Indian manufacturer specializing in premium quartz and stainless steel kitchen sinks, faucets, and a wide range of built-in kitchen appliances such as chimneys, cook-tops, ovens, wine chillers, and dishwashers. Established in 1987 and formerly known as Acrysil Limited, the company is the largest producer of quartz kitchen sinks in Asia and the fourth largest globally.
Carysil has a global footprint, with operations extending to numerous countries and subsidiaries in the UK, Germany, and the UAE. The company is recognized for its German-engineered technology, combining innovation, craftsmanship, and style to enhance modern kitchens.
In Q1 FY26, Quartz sinks remained the largest revenue contributor for the company, accounting for 49.8% of total product-wise revenue. Surface products followed with a share of 25.7%, reflecting the company’s diversification. Appliances and others contributed 14.8%, while Steel sinks made up the remaining 9.7%.
In Q1 FY26, the UK remained the largest revenue contributor by geography at 34.0%, followed by the USA at 26.8%. Europe accounted for 13.2%, while India contributed 17.7%. The remaining 8.3% came from the Rest of the World (ROW).
The company’s revenue rose by 12.82 percent from Rs. 201 crore to Rs. 227 crore in Q1FY25-26. Meanwhile, Net profit rose from Rs. 16 crores to Rs. 23 crores during the same period.
The company has a median sales growth of 15.1% over the past 10 years. It shows a healthy return on capital employed (ROCE) of 15.4% and return on equity (ROE) of 14.5%. Its stock trades at a price-to-earnings (P/E) ratio of 31.7, which is lower than the industry average of 57.7.
Written by Sridhar J
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