Mahindra & Mahindra is GST 2.0’s biggest auto winner. 5 reasons why
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Mahindra & Mahindra shares emerged as the standout gainer in India’s auto sector after sweeping tax cuts under the new “GST 2.0” regime, with the stock suring up to 9% since Thursday as brokerages including Emkay Global, Jefferies, Motilal Oswal, and ICICI Direct said M&M is uniquely positioned to benefit from across-the-board rate reductions, from SUVs to tractors, making it the single-biggest winner of the overhaul. Finance Minister Nirmala Sitharaman on Wednesday announced the restructuring of the goods and services tax (GST), collapsing four slabs into two rates of 5% and 18%, while maintaining a 40% levy on luxury and sin goods. For the automobile sector, the changes slash GST on most categories from 28% to 18% and cut tractors to 5%. SUVs above four meters will be taxed at a uniform 40%, down from 43–50% earlier. The changes take effect on September 22. 1. SUV portfolio gets a direct boost M&M’s dominance in the large SU...