GST May Pass Next Week; Grab These 7 Stocks

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If GST becomes a reality, a few companies that face fierce competition from the unorganized sector would benefit. This is because the unorganized sector would have to start paying taxes. Here are 7 companies that would benefit.

Greenply

The company is a major player in plywood, wooden floors, decorative veneers etc. The company faces heavy competition from the unorganized sector. When they come under the ambit of taxes after the implementation of GST, it could benefit Greenply as they would have to hike product prices. 

The stock of the company closed at Rs 259.50 on the NSE.

Century Plyboards (India) Limited

Century Plyboards is another beneficiary on the same lines like Greenply.

Heavy domination by the unorganised sector could benefit the company after the implementation of GST. Century Plyboards is a manufacturer of plywood, laminate sheets, fiberboard, marine wood, MDF boards etc. The stock of Century closed at Rs 234  on the NSE.

Finolex Cables

Rough estimates have placed the share of the unorganised sector in the cables business at around 40 per cent.

This will allow companies like Finolex Cables the leverage on the pricing front, as these companies would now have to pay taxes. Again, a good strong player with decades of experience in the cables business.

The stock closed at Rs 394 on the BSE.

PVR

Mutiplex players tend to get affected by higher entertainment tax. With GST, it could reduce the prices of tickets, adding to footfalls.

The shares are already trading very high in anticipation of better prospects after the implementation of GST.

 

HUL

Hindustan Unilever would benefit from rationalization of taxes and lower warehousing costs once GST is implemented.

However, demand for the company's products  over the last few quarters has not really grown as anticipated. So, watch for the fundamentals before you buy the shares.

Maruti

Maruti is the country's biggest small car players. With the implementation of GST, it is likely that taxes on small cars would fall thus boosting margins for the company.

Shares of Maruti last closed at Rs 4,755 on the NSE.

Inox Leisure

Inox Leisure like PVR would gain from lower entertainment taxes. There is a likelihood that the company gains from higher footfalls due to lower taxes. The stock has run up significantly in the last few weeks and is now trading at Rs 246.

Disclaimer

The article is not a solicitation to buy, sell in securities or other financial instruments. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and do not accept culpability for losses and/or damages arising based on information in this article.

 

 

Read more about: gst
Story first published: Saturday, July 30, 2016, 6:07 [IST]
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