🔑 GST 2.0 – Key Highlights and stocks to buy now | Researched by VLA Ambala (SEBI RA)
- GST slabs simplified from 4 (5%, 12%, 18%, 28%) → 2 slabs (5% & 18%).
- A 40% slab introduced for sin & luxury goods (alcohol, cigarettes, luxury cars).
- Tax cuts on essentials like soaps, shampoos, small cars, ACs, TVs, insurance, and agri machinery.
- Expected to boost GDP by 1–1.2% over the next 4–6 quarters.
📉 Old vs New GST Rates
| Category | Old GST | New GST | Impact |
|---|---|---|---|
| Small Cars, 2W, Hybrids | 28% | 18% | Vehicles more affordable |
| FMCG Essentials | 18–28% | 5–18% | Everyday items cheaper → volume growth |
| Consumer Durables (AC, TV) | 28% | 18% | Big-ticket affordability ↑ |
| Cement & Building Materials | 28% | 18% | 7–8% cheaper construction |
| Insurance | 18% | 0–18% | Policies more affordable |
| Agri Machinery | 18% | 5–12% | Boost to rural spending |
| Education Supplies | 12–18% | 0–12% | Cheaper books, stationery |
📈 Sectors & Stock Beneficiaries
🚗 Automobiles
Lower GST will make cars and two-wheelers more affordable.
- Stocks: Maruti Suzuki, Tata Motors, M&M, Hero MotoCorp, Ashok Leyland
🛒 FMCG
Everyday essentials get cheaper, boosting consumption.
- Stocks: HUL, ITC, Britannia, Dabur, Nestlé
📺 Consumer Durables
Price cuts will improve sales of appliances.
- Stocks: Voltas, Havells, Blue Star, Whirlpool
🏗️ Cement & Infra
Cement prices fall 7–8%, aiding real estate and infra growth.
- Stocks: UltraTech Cement, JK Cement, Dalmia Bharat
🏦 Banking & Insurance
Insurance GST cuts make policies affordable, credit demand increases.
- Stocks: HDFC Bank, ICICI Bank, Bajaj Finance, HDFC Life, Max Life
👗 Retail & Hospitality
Lower GST on goods and services → festive demand boost.
- Stocks: Bata, Trent, Vedant Fashions, Indian Hotels, Lemon Tree
🌾 Agriculture
Tax cuts on tractors & agri machinery support rural economy.
- Stocks: Escorts Kubota, VST Tillers, PI Industries, Coromandel
🏥 Healthcare & 📚 Education
Insurance & diagnostics cheaper, school supplies affordable.
- Stocks: Dr Lal PathLabs, Navneet, S Chand, Star Health
🚚 Logistics
Higher consumption → more deliveries.
- Stocks: Delhivery, Blue Dart
💡 Mid-Cap Hidden Gems
- FMCG Value Plays: Mishtann Foods, Sanwaria, JHS Svendgaard
- Food Processing: Ajanta Soya, ANS Industries, Sarveshwar Foods
- Agri Inputs: Dhanuka Agritech, VST Tillers
- Education: Navneet, S Chand
- Insurance: Niva Bupa, Star Health
📊 Investment Strategy
- Short Term: FMCG & Auto → Quick consumption rally.
- Medium Term: Cement & Infra → Capex cycle boost.
- Long Term: Insurance, Agri, Consumer Durables → Structural growth plays.
Investor Tip: Use dips to accumulate quality stocks in these sectors. GST 2.0 is not just a tax reform, it’s a consumption booster for India’s economy, though keep in mind the economy grows when “It’s focus on Production, not on Consumption.
Stock to watch after GST 2.0 reforms on the basis of
Company Overview– Key Financials & Growth Drivers– Technical/Valuation View-Investment Strategy (Entry, Target, SL, View Period)
📌 Stock Recommendation Note
1️⃣ DELHIVERY (CMP: ₹478 | Market Cap: ₹35,693 Cr | Mid Cap)
📍 Business Overview:
India’s leading integrated logistics and supply chain services company, providing express parcel, part-truckload, full-truckload, cross-border, and supply chain software solutions. Strong presence in e-commerce logistics.
📊 Financial Highlights (Q1 FY26 – Jun 2025):
- Revenue: ₹2,294 Cr (+5.6% YoY, +4.7% QoQ)
- Operating Profit: ₹148 Cr (+53% YoY, +25% QoQ)
- Net Profit: ₹98.6 Cr (+177% YoY, +77% QoQ)
- ROE: 3.78% | PE: 179.5
🌟 Growth Drivers:
- Rising e-commerce penetration in India.
- Increasing focus on high-margin services (returns, fraud detection, supply chain SaaS).
- Strong operating leverage visible from margin improvement.
📈 Investment Strategy:
- Buy Zone: ₹410 – ₹380
- Target Price: ₹480 – ₹700
- Stop Loss: ₹350
- Time Horizon: 6 to 20 months
- View: Positive, strong re-rating candidate with focus on profitability and scale.
2️⃣ ABB India (CMP: ₹5,163 | Market Cap: ₹1,09,943 Cr | Large Cap)
📍 Business Overview:
Global tech & engineering leader in electrification, robotics, automation, and motion control. Strong presence in power transmission, factory automation, and sustainable energy solutions.
📊 Financial Highlights (Q1 FY26 – Jun 2025):
- Revenue: ₹3,175 Cr (+12% YoY, flat QoQ)
- Operating Profit: ₹206 Cr (-23.7% YoY, -28.9% QoQ)
- Net Profit: ₹351 Cr (-20.7% YoY, -25.9% QoQ)
- ROE: 26.45% | PE: 61.1
🌟 Growth Drivers:
- Government focus on energy transition, smart factories, EV infra, and renewables.
- Long-term play on automation & green energy in India.
- Short-term margin pressure due to input cost inflation, but robust order pipeline.
📈 Investment Strategy:
- Buy Zone: ₹5,000 – ₹5,150
- Target Price: ₹5,700 – ₹8,000
- Stop Loss: ₹4,500
- Time Horizon: 6 to 20 months
- View: Accumulate on dips, strong large-cap compounding story.
Perfect 👍 Let’s continue the professional stock recommendation note format for DIXON and DABUR.
📌 Stock Recommendation Note
3️⃣ DIXON TECHNOLOGIES (CMP: ₹17,852 | Market Cap: ₹1,07,436 Cr | Large Cap)
📍 Business Overview:
Dixon Technologies is India’s largest EMS (Electronics Manufacturing Services) player, catering to consumer durables, lighting, mobile phones, LED TVs, and washing machines. It also provides electronics repair and backward integration services.
📊 Financial Highlights (Q1 FY26 – Jun 2025):
- Revenue: ₹12,835 Cr (+95.1% YoY, +24.7% QoQ)
- Operating Profit: ₹482 Cr (+94.6% YoY, +8.9% QoQ)
- Net Profit: ₹273 Cr (+106% YoY, -40.7% QoQ)
- ROE: 21.7% | PE: 90.5
🌟 Growth Drivers:
- Government PLI (Production Linked Incentive) scheme boosting manufacturing.
- Growing demand for “Make in India” electronics – mobile, consumer appliances, lighting.
- Strategic partnerships with global brands (Samsung, Xiaomi, etc.).
📈 Investment Strategy:
- Buy Zone: ₹17,200 – ₹17,560
- Target Price: ₹19,000 – ₹23,000
- Stop Loss: ₹15,400
- Time Horizon: 6 to 10 months
- View: Strong growth momentum; long-term beneficiary of India’s electronics manufacturing shift.
4️⃣ DABUR INDIA (CMP: ₹543 | Market Cap: ₹98,067 Cr | Large Cap)
📍 Business Overview:
Dabur is the world’s largest Ayurvedic & Natural Products company, with a diverse portfolio in FMCG – healthcare, personal care, and foods. Brands like Dabur Chyawanprash, Real Juices, Vatika, and Dabur Honey dominate the market.
📊 Financial Highlights (Q1 FY26 – Jun 2025):
- Revenue: ₹3,404 Cr (+1.6% YoY, +20.3% QoQ)
- Operating Profit: ₹667 Cr (+1.9% YoY, +56.4% QoQ)
- Net Profit: ₹508 Cr (+2.9% YoY, +62.7% QoQ)
- ROE: 16.37% | PE: 54.1 | Dividend Yield: 1.47%
🌟 Growth Drivers:
- Strong rural & semi-urban demand recovery.
- Rising preference for Ayurveda, health & wellness products.
- Expanding international presence across Middle East & Africa.
📈 Investment Strategy:
- Buy Zone: ₹540 – ₹555
- Target Price: ₹640 – ₹720
- Stop Loss: ₹490
- Time Horizon: 12 months
- View: Defensive FMCG bet with consistent compounding potential.
More stocks to watch
DELHIVERY
ABB
DIXON
ACC
ITC
DEEPAKFERT
ESCORTS
INDHOTEL
M&M
STARCEMENT
AARTIIND
DABUR
BATAINDIA
KHADIM
OLAELEC
ACC
TATAMOTORS
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DATE – 4th September 2025