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GSTJuly1rolloutinsight5stockswhicharelikelytobenefit
themost
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tobenefitthemost2249795.html

TheLokSabhaonWednesdaypassedfourcruciallegislationstointroduceacountrywideGoodsandServicesTax
(GST)bringingIndiaclosertoaunifiedtaxregimeandwhileputtinganendinguncertaintywhichispositivefor
markets.

TheLokSabhapassedtheCentralGSTBill,2017(CGSTBill),IntegratedGSTBill,2017(IGSTBill),Union
TerritoryGSTBill,2017(UTGSTBill)andtheGST(CompensationtotheStates)Bill2017aftermorethaneight
hoursofdebate.

ThepassageoftheBillsmarksabigstepforwardinIndiasplanstorolloutGSTfromJuly1.

Thefifthlaw,SGSTBillwillbetakenbythestategovernmentsthroughtheircabinetstotherespectivestate
assemblies.

MacquarieSecuritiesGroupbelievesthattheriskrewardisinfavourofinvestorsandonecouldlookatdomestic
storiesinthecurrentsetupwithameasuredapproach.

Thereareheadwindsinthecaseofexportstoriesduetopoliticaluncertaintyandregulatoryissues,Sandeep
Bhatia,HeadEquity,India,MacquarieSecuritiesGrouptoldCNBCTV18.

BhatiahasaportfoliostrategythatisfocusedonIndia.HerecommendslookingatbeneficiariesfromGST
implementationsuchasITC.

Wehavecollatedalistoftop5stocksrecommendedbyvariousbrokeragefirmswhicharelikelytobenefitmore
fromtheimplementationofGST:

GodrejIndustries:BUY|TargetRs594

SMCGlobalSecuritiesmaintainsabuyratingwitha12monthtargetpriceofRs594.InFY18,management
expectstheimplementationofGSTwouldprovidestrongmomentumforamuchbettereconomicenvironmentand
strongerconsumerdemand.

Goingforward,throughitsCREATEstrategy,thecompanywouldcontinuetostrengthenitspositioninallitscore
businesseswhilefosteringaninspiringgrowthwasaheadofsalesgrowth,despiteastrongplacetowork,saidthe
note.

SMCGlobalexpectsthestocktoseeapricetargetofRs594in8to10months.Thecompanychemicalsbusiness
hasalsoP/Eof41xandFY18(E)earningsof14.48.

DaburIndia:BUY|TargetRs333

EdelweissSecuritiesmaintainsabuyrecommendationonDaburIndiawithatargetpriceofRs333.The
brokeragefirmexpectsarecoveryinvolumesandpremiumisation.Theuptickinruralspending,newlaunchesin
herbalandgovernmentsstimulusremainkeytriggers.

VolumegrowthisexpectedtostabilisestartingQ1FY18,thoughQ4FY17couldremainmuted.Volumegrowthcan
beinmidtosingledigitsinH1FY18andlowerdoubledigitinH2FY18.

Q4FY17willseeasignificantcutinpromotions,whichwillbeploughedtoadspends.Daburlaunchedgelformat
ofRedtoothpasteinfewstates.Distributorinventoryhasdeclinedto25daysfrom37earlier.GSTimplementation
canimpactperformanceinshortterm.Daburlost300bpsmarketshareinChyawanprashand600bpsinhoney,
saidthereport.
6/22/2017 PrintFriendly.com:Print&PDF

VRLLogistics:BUY|TargetRs320StopLossRs296

AmrapaliAadyaTrading&InvestmentsmaintainsabuyratingonVRLLogisticswithashorttermtargetpriceofRs
296.Forquitesometime,thestockwastradingatcongestionzonearoundRs300.WithroadblockclearforGST
playfromJuly2017ithasnowcomeoutfromitslongcongestionperiodonWednesday.

IthasstrongsupportplacedatRs295whichisalsoitsshorttermandlongtermmovingaverage.Onthedaily
chart,ithasformedastrongbullcandlewhichcloseshigherbreakingaboveitsrange.

TransportCorporationofIndia:BUY|TargetRs272

BonanzaPortfoliomaintainsabuyrecommendationonTrasportCorporationofIndiawithatargetpriceofRs272.
TheIndianlogisticsindustryisplaguedbymultiplelevelsofstateandcentraltaxes.Theproductispronetodouble
taxationastaxesalreadypaidoninputsarenotadjustedonthecalculationoftaxesonthefinalproduct.

ImplementationofGSTwouldleadtorationalizingoftaxesonproduction,distributionandinventorymanagement.
GSTwouldsimplifythesecomplicationsandbenefitconsumers,producesandthegovernment.

Giventhegovernmentstressoncoastalshipping,benefitfromGSTanddemergerofXPSdivision,TCIisbetter
placedtoincreaserevenuefromitsfreightbusiness,henceassigningaP/Emultipleof16xonFY18EEPSofRs
17.06toarriveatafairpriceofRs272/share,saidthereport.

TeamLeaseServices:BUY|TargetRs1,200

KotakInstitutionalEquitiesupgradedTeamLeaseServicestobuyfromAddearlierinthemonthofMarchwitha
targetpriceofRs1,200.

Thebrokeragehousebelievesrecentcorrectionandunderperformanceofthestockpricepresentagoodbuying
opportunityintoTeamLease'slongtermstructuralgrowthstoryoforganisedstaffing,underpinnedbyGST
implementationandsimplificationoflabourlaws.

ItfeelsGST(goods&servicestax)implementationcanreducethepricinggapbetweenorganisedand
unorganisedstaffingcompanies.Currently,unorganisedstaffingcompaniesarecheaperby2025percentbelow
organisedcompanies,largelyduetononpaymentofstatutoryleviessuchasemployeeprovidentfund.

KotakupgradeditsEPSestimatesby1622percentasitbuiltinachangeinaccountingpolicyrelatedto
amortisationofgoodwill.ThetaxratemayalsobelowasTeamLeasemaystillbeabletotakeincometax
advantageofaroundRs3croreayearfor10yearsongoodwillamortisationwithinitssubsidiarypostahighcourt
approval.

Disclaimer:Theviewsandinvestmenttipsexpressedbyinvestmentexpertsonmoneycontrol.comaretheirown,
andnotthatofthewebsiteoritsmanagement.Moneycontrol.comadvisesuserstocheckwithcertifiedexperts
beforetakinganyinvestmentdecisions.

tags#GST#logistics#LokSabha#Macquarie#StocksViews#TeamLease

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