Monarch Networth sees up to 56% upside in abrasive stocks

Monarch Networth Capital initiated coverage on Indian abrasive sector stocks, projecting up to 56% upside in a bull case driven by China losing export rebates.

The brokerage prefers Grindwell Norton, Carborundum Universal, and Wendt India based on fundamentals, anticipating a nascent capex upcycle and structural premiumization.

Key drivers for the sector include growing demand from automotive precision, aerospace, electronics, semiconductor applications, and electric vehicle-adjacent markets.