GST 2.0 stocks to buy: List of 90 winners from top brokerages
India’s sweeping GST 2.0 revamp has triggered a broad-based market reset with tax cuts across autos, FMCG, cement, insurance, consumer durables and more. Analysts at JM Financial, Motilal Oswal, Emkay Global, Jefferies and Prabhudas Lilladher have identified over 90 stocks that could benefit. The new rates, effective September 22, are expected to boost consumption, profitability and investor sentiment. Here’s the sector-wise list of winners.
Two-wheelers under 350cc and small cars will now attract 18% GST, down from 28–31%. Jefferies called SUV tax cuts a “surprise win” for Mahindra & Mahindra, while Kotak Securities’ Arun Agarwal said price reductions across categories could be in the mid-to-high single digits. Auto components also see GST reduced to 18%, benefitting Endurance Tech, Uno Minda, Exide, Sona BLW and Motherson.
GST has been slashed to 5% for items like biscuits, chocolates, noodles, juices, shampoos and soaps. Analysts expect demand volumes to rise as retail prices fall. Other names in focus include GCPL, Colgate, Marico, Bikaji, Emami and Patanjali.
Garments priced between Rs 1,000–Rs 2,500 now attract 5% GST, down from 12%. Footwear GST has been cut from 18% to 5%, a boost for mass-market players like Metro, Bata and Relaxo.
GST on cement has been lowered to 18% from 28%. Jefferies said the 10ppt cut creates volume upside and headroom for price hikes. Grasim and other producers are also expected to gain from lower input costs.
Life and health insurance policies have been exempted from GST. Brokerages view this as a positive structural shift for penetration in the sector. Other beneficiaries include Max Life, Niva Bupa and NIACL.
Tax on ACs, TVs and other durables has been cut to 18% from 28%. Analysts say this will lift demand, with Amber, IFB Industries and Crompton also in focus.
Rooms priced below Rs 7,500 will now be taxed at 5% without input tax credit, compared with 12% earlier. Smaller hotel chains are expected to see a demand lift.
Consumption-driven demand recovery is expected to support lenders. Brokerages see NBFCs and consumer finance names among the beneficiaries.
Stocks in focus include Tata Chemicals, Deepak Fertilisers, PI Industries, Hindustan Zinc and Dhanuka Agritech. GST cuts are expected to ease costs across the sector.
The GST rate cut to 5% is a tailwind for textile and apparel makers. Other beneficiaries flagged by brokerages include Sanathan Textiles, Vardhman, Alok Industries, Vedant Fashions and KPR Mill.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
