The Goods and Services Tax (GST) Council recently tweeted that they will meet on 7th October 2023 for the purpose of discussing some pending reforms. One of the points on the agenda is with respect to the ‘Molasses’ wherein the Council is likely to reduce the GST from 28 percent to 5 percent.
Listed below are a few Alcohol stocks, since molasses is considered input for such companies, that may benefit from any favourable decision during the GST Council meet tomorrow:
Jagatjit Industries Limited
With a market capitalization of Rs 604.45 crores, the stocks of Jagatjit Industries Limited started their trading session on Friday at Rs 136.60 and currently is locked in the 5 percent upper circuit at a price of Rs 137.65.
Having a glance at the company’s past annual performance, the company has successfully increased its operating revenues as well as net profits with the former rising from Rs 445 crores during FY21-22 to Rs 505 crores during FY22-23, and, the latter moving up from Rs 60 lakhs to Rs 7 crores keeping the timeframe the same.
In addition to the above, the company’s profitability metrics have shown positive movements with the return on equity (RoE) increasing from 0.92 percent during FY21-22 to 10.94 percent during FY22-23, and, the return on capital employed (RoCE) also improving from 8.50 percent to 11.41 percent.
Tilaknagar Industries Limited
With a market capitalization of Rs 4,127.89 crores, the stocks of Tilaknagar Industries Limited started their trading session on Friday at Rs 207.55 and currently trades at Rs 215.30, gaining around 3 percent as compared to the previous closing price of Rs 209.
Having a glance at the company’s past annual performance, the company has successfully increased its operating revenues as well as net profits with the former rising from Rs 783 crores during FY21-22 to Rs 1,164 crores during FY22-23, and, the latter moving up from Rs 45 crores to Rs 149 crores keeping the timeframe the same.
In addition to the above, the net profit margin of the company rose from 5.76 percent during FY21-22 to 12.87 percent during FY22-23. The return on capital employed (RoCE), too, improved from 15.65 percent to 19.45 percent.
Radico Khaitan Limited
With a market capitalization of Rs 16,312.33 crores, the stocks of Radico Khaitan Limited started their trading session on Friday at Rs 1,209.95 and currently trades at Rs 1,220, gaining 1.20 percent as compared to the previous closing price of Rs 1,206.45.
Having a glance at the company’s performance during the past few quarters, the company has successfully increased its operating revenues as well as net profits with the former rising from Rs 831 crores during Q4FY22-23 to Rs 953 crores during Q1FY23-24, and, the latter moving up from Rs 37 crores to Rs 63 crores keeping the timeframe the same.
In addition to the above, the company’s profitability metrics, due to increased operating costs and interest obligations, have shown a dip with the return on equity (RoE) decreasing from 12.98 percent during FY21-22 to 9.98 percent during FY22-23, and, the return on capital employed (RoCE) also declining from 16.20 percent to 11.28 percent.
United Breweries Limited
With a market capitalization of Rs 41,338.42 crores, the stocks of United Breweries Limited started their trading session on Friday at Rs 1,555 and currently trades at Rs 1,563.45, gaining around 0.60 percent as compared to the previous closing price of Rs 1,554.15.
Having a glance at the company’s performance during the past few quarters, the company has successfully increased its operating revenues as well as net profits with the former rising from Rs 1,765 crores during Q4FY22-23 to Rs 2,274 crores during Q1FY23-24, and, the latter showing a drastic movement from Rs 9 crores to Rs 136 crores keeping the timeframe the same.
In addition to the above, the company’s profitability metrics, due to increased cost pressure, have shown downward movements with the return on equity (RoE) decreasing from 9.28 percent during FY21-22 to 7.66 percent during FY22-23, and, the return on capital employed (RoCE) also declining from 12.81 percent to 11.36 percent.
Written by Amit Madnani
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