From Ultratech Cement to M&M, these GST beneficiaries hit a record high in today’s trading session after the rate rationalisation. Find out whether analysts expect more upside on the stock.
1 / 6The GST Council on Wednesday night approved sharp cuts to existing tax rates and approve a two-slab structure in a move aimed at boosting consumption in the country. Auto, FMCG, tractor, footwear stocks are some of the key beneficiaries of such a move and any stocks have also hit a record high in Thursday’s trading session. Here’s a look at some of those names and whether they have more upside left as per consensus estimates.
2 / 6Mahindra & Mahindra | The stock hit a record high of ₹3,550 in early trading on Thursday having gained as much as 7.5%. 43 analysts have coverage on Mahindra and Mahindra, of which 41 of them have a “buy” rating and two have a “hold”. No analyst has a “sell” recommendation on the stock. Consensus estimates are projecting a further 5.5% upside for the stock. Not just automobiles, M&M is also a beneficiary of the GST cut on tractors.
3 / 6Eicher Motors | The manufacturer of Royal Enfield Motorcycles hit a record high of ₹6,713 on Thursday, but has cooled off marginally from those levels. 86% of its product portfolio falls under the 350cc category, where the GST has been cut to 18% from 28%. 41 analysts have coverage on Eicher, where 22 have a “buy” rating, 11 say “hold” and eight have a “sell” rating. Consensus estimates are projecting a potential downside of 12.5% on the stock. At least four out of the 41 analysts still have a price target in excess of Eicher’s current market price.
4 / 6TVS Motor | The stock also hit a record high of ₹3,500 on Thursday after the GST rate rationalisation, which will benefit two-wheelers. 42 analysts have coverage on TVS Motor, of which 25 have a “buy” rating, 10 have a “hold” and seven have a “Sell” rating. Consensus is projecting a potential downside of 13.4% from current levels. Only two analysts now have a price target in excess of TVS’ current price.
5 / 6Lemon Tree Hotels | The GST Council on Thursday approved the proposal to revise the GST on hotel room rates to 5% without an Input Tax Credit (ITC) from 12% with Input Tax Credit earlier for rooms costing up to ₹7,500 per night. The move has benefitted stocks like Lemon Tree Hotels, which made a record high of ₹176.5 on Thursday, but cooled off slightly from those levels. 23 analyst have coverage on Lemon Tree, 21 of them have a “buy” rating while one each have a “hold” and “sell” rating. 14 analysts still have a price target in excess of Lemon Tree’s share price.
6 / 6UltraTech Cement | Shares of India’s largest cement company also made a record high in excess of ₹13,000 after the GST rate on cement was cut to 18% from 28%. 46 analysts have coverage on UltraTech, 38 of them have a “buy” rating, and four each have a “hold” and “sell” recommendation. As many as 34 of those analysts tracking UltraTech, still have a target that is higher than the stock’s current market price.
