India’s food industry, worth $400 billion, is among the world’s largest, contributing over 10% to the country’s GDP. It employs about 60 million people and includes agriculture, manufacturing, and retail. With a projected 12% CAGR growth, the sector is fueled by increasing demand and innovation.
In 54th GST Council Meeting on Monday, Finance Minister Nirmala Sitharaman announced that the GST rate on such products had been reduced significantly to 12% from 18% earlier.
Additionally, the Finance Minister also stated that snacks made using the extrusion process would be taxed at 18 percent. However, other snacks and savory items, such as bhujia, could potentially be subject to a 12 percent GST.
However, unfried or uncooked snack pellets produced through extrusion will continue to be taxed at a GST rate of 5 percent.
Here are the stocks that jumped up to 8% after Finance Minister announced a GST rate cut on snack products to 12%:-
Bikaji Foods International Ltd
Bikaji Foods International Limited is primarily involved in the manufacturing, purchase, and sale of snacks and food. The Company offers a range of products across six categories: bhujia, namkeen, sweets, papad, western snacks, and other snacks.
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With a market capitalization of Rs 21,764.47 crore, the shares were trading at Rs 869.25 per share, increased around 8 percent as compared to the previous closing price of Rs 834.95 apiece.
Gopal Snacks Ltd
Gopal Snacks Limited is a major operator in India’s fast-moving consumer goods (FMCG) sector, with an emphasis on the snack market in Gujarat. The company’s major activity is to manufacture and sell a wide variety of savory items.
With a market capitalization of Rs 4,289.51 crore, the shares were trading at Rs 344.25 per share, increased around 8 percent as compared to the previous closing price of Rs 326.30 apiece.
Prataap Snacks Ltd
Prataap Snacks Limited is engaged in the processing, manufacturing, and sale of various types of potato-based snacks, extruded snacks, namkeen, and ethnic sweets under the brand name, Yellow Diamond. The Company operates in the snack food segment.
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With a market capitalization of Rs 2,008.47 crore, the shares were trading at Rs 841.30 per share, increased around 8 percent as compared to the previous closing price of Rs 811.70 apiece.
Written by:- Abhishek Singh
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