Dairy Sector Check - Likely Levy Of 5% GST On Curd, No Material Impact: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.We believe the likely levy of 5% goods and service tax on curd and lassi is unlikely to have any material impact on the financials of dairy companies. Curd and lassi account for 15- 25% of revenues of dairy companies. We believe most dairy companies will be able to avail input tax credit on the costs incurred such as packaging material, freight and transportation and ad-spend. Hence, we believe the effective impact of the likely GST levy will be 2-3% on the financials of dairy companies. We model most dairy companies to pass on the impact via price hikes. As consumers boil the milk before consuming, they are still ready to accept unorganised milk but as they consume the curd directly, they prefer buying packaged curd. Hence, we do not expect any material impact..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Dairy Sector Check - Likely Levy Of 5% GST On Curd, No Material Impact: ICICI Securities

Dairy Sector Check - Likely Levy Of 5% GST On Curd, No Material Impact: ICICI Securities

Choose a plan