GST reforms expected to lift auto, banking, cement stocks: Report

New Delhi – The upcoming rationalisation of GST slabs is likely to boost consumption and improve profitability across sectors including automobiles, financial services, cement, and consumer staples, according to a report released on Monday.

Passenger and commercial vehicles, currently taxed at 28 per cent, would see a boost if moved to the 18 per cent slab. “Maruti, Tata Motors, and Ashok Leyland are well placed to benefit from lower effective prices and rising volumes,” brokerage Motilal Oswal Financial Services (MOFS) said in its note.

Stronger household spending is also expected to spur demand for financing. ICICI Bank, HDFC Bank, and IDFC First Bank may see faster retail loan growth, while Bajaj Finance could benefit from lower EMIs on consumer durables.

In infrastructure, cement makers are seen as major gainers, with a GST cut from 28 per cent to 18 per cent potentially reducing cement prices by 7–8 per cent. Consumer goods players such as HUL and Britannia may also benefit as several raw materials move into lower tax slabs, easing input costs.

Durables manufacturers like Voltas, Havells, and Amber Enterprises could see volume growth, while hotel chains including Lemon Tree and Indian Hotels may become more affordable to customers. The report also noted that if GST on senior citizens’ health insurance falls from 18 per cent to 5 per cent—or is waived—insurers such as Niva Bupa, Max Life, HDFC Life, and Star Health would stand to gain.

Rising demand for staples, durables, and discretionary products is also expected to aid logistics companies like Delhivery. Quick-commerce platforms such as Swiggy and Zepto are forecast to benefit from higher household consumption.

Footwear and other mass products moving to lower slabs could reduce the tax advantage of the unorganised sector, supporting organised players like Relaxo, Bata, and Campus.

With inputs from IANS