Gurmeet Chadha, Managing Partner and CIO at Complete Circle, said GST changes must ensure that consumers see real benefits. “Eventually you want more money in the hands of the consumer, and not too much of a rejig,” he said. Travel and hotels remain important parts of the consumption theme, with stocks like Lemon Tree already moving on expectations of a lower slab. Chadha added that disputes in classification and the inverted duty structure need resolution so that input and output taxes are aligned.
Also Read | GST Cut On Textiles: These stocks are likely to see a reactionCement
Jyoti Gupta, Research Analyst at Nirmal Bang Institutional Equities, said the impact on cement may take time. “When you’re reducing it from 28% to 18%, it will have some impact on the operating incomes of the company, and that could be offset by an increase in demand in a later part of the year,” she said. Gupta noted that cement demand in India does not always respond quickly to price changes, and the effect may only be visible in later years.
AutosChadha highlighted that two-wheelers could benefit from GST changes, which are supported by rural demand. “Two wheelers are a big beneficiary,” he said. Ancillary makers such as Uno Minda and Lumax have also gained. Among four-wheelers, Chadha pointed to Mahindra & Mahindra (M&M) as a top pick, given its position in SUVs. Tractors and farm equipment may also see relief if rates move lower.
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Consumer Stocks
On the consumer side, Chadha said investors need to separate core and tactical plays. Companies such as Nestle, Tata Consumer and Bikaji could benefit from demand in packaged foods and beverages, while Trent and online platforms like Nykaa and Swiggy remain part of the broader consumption story. “You play that in terms of core, New Age, traditional,” he said.
For the full interview, watch the accompanying video
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(Edited by : Unnikrishnan)
