New Delhi, Oct. 1 -- China's abrasive (materials used for grinding, cutting and polishing) products are losing export rebates, and this could benefit Indian-made abrasive more competitive. The sector is witnessing a blend of capex up-cycle with structural premiumisation, according to Monarch Networth Capital which sees up to 56% upside potential (bull case) in stocks like like Grindwell Norton, Carborundum Universal, and Wendt India.

Demand from automotive precision, aerospace, electronics, semiconductor and EV-adjacent applications may also drive growth in the sector. The brokerage sees a nascent upcycle in the sector lifted by premiumisation.

The brokerage remains bullish on three stocks in the sector, ie Grindwell Norton, Carborundum...