We had earlier shared two updates regarding on-going CVD & ADD investigation against quartz exports from India and Turkey to US:

1). https://investor.stalwartvalue.com/report_updates/336?from_updates=true

2). https://investor.stalwartvalue.com/report_updates/369?from_updates=true

In October 2019, a preliminary countervailing duty of 4.32% was levied on Pokarna, while the outcome for anti-dumping investigation was expected by early December 2019.

In a dramatic turn of events, the US Department of Commerce has amended preliminary countervailing duty to 83.79% which company says is 'unfounded, absurd & divorced from reality' and they expect it to be corrected in the final determination.

However, as mentioned in our initial update regarding duty investigation, we did see some scope of irrational decision amidst on-going trade war and upcoming US elections.

We initially invested 3% of portfolio in this business. This has always been a tracking position and one in which a lot went wrong from company surrendering allotted land causing a two-year delay in new plant commissioning to going back on the decision to divest loss-making textile segment, which is why we never added to this position despite a significant price drop. The current model portfolio weightage is 1.5% (could be different for subscribers due to different entry timings) which is why either ways it is too small a position to make much difference at portfolio level.

For now, we continue to hold and will take a decision once there is clarity on duty investigations outcome & its implications.