Which stocks will benefit from GST?

Is it the logistics sector?

 

GATI and other logistic stocks

 

To find out "What kind of cos will benefit if GST is implemented?", Check this link :
https://www.moneycontrol.com/news/m...ll-benefit-if-gst-is-implemented_4359781.html

 

@New_Investor The answer given by expert is bogus. He says "We are long-term investors. We do not try and time regulatory incidence of movement in stock prices but I assume someone who is trying to time this, would need to look at the indirect tax incidence of companies where they are paying taxes higher than GST rate and that would theoretically be the savings that those companies make."

If investor has to figure out himself what is role of expert?

I think TCI is better buy because of demerger of xpress division. So even if GST fails demerger talk will prove beneficial for TCI.

 

Success of Tea party at PM Modi's residence will decide the fate of GST Bill.

 

GST Bill stalemate: PM Narendra Modi breaks ice, reaches out to Sonia Gandhi, Manmohan Singh

https://economictimes.indiatimes.co...andhi-manmohan-singh/articleshow/49951592.cms

 

I have TCI and Gati. Both should do well.

 

At least the two parties are ready to sit and talk seriously regarding GST. Maybe because ASSOCHAM and the other Industrial associations and big Corporates are pressuring them to discuss the matter and try to solve it. So there are hopes. Positive hopes that GST bill will be cleared in the winter session of parliament. Even if GST bill is cleared in the current session rollout of GST from April 2016 is still difficult.

 

What do you think about patel integrated logistics?

 

Should do well. But big investors like Kacholia and Damani are in TCI and Gati.

 

Ok. Thanks.

 

Logistics shares in focus; Transport Corporation hits 52-week high

Transport Corporation, Gati, Allcargo Logistics, TCI Ind, VRL Logistics, Gateway Distriparks and Patel Integrated were up 2%-8% on the BSE.

Shares of logistic companies are trading higher for a second straight day on the bourses on reports that the government on Thursday exuded confidence of having the Goods and Services Tax (GST) Bill passed, with several Opposition parties coming out in open support.

https://www.business-standard.com/a...oration-hits-52-week-high-115112700196_1.html

 

Is it right time to invest in logistics for immidiate gain?My opinion is -no.

 

GST will lower product costs by 10-15%: TCI

The Goods and Services Tax (GST) if passed will help Transport Corporation of India (TCI) in smoother movement of trucks across states, says managing director Vineet Agarwal.

Speaking to CNBC-TV18, Agarwal says GST can help end users by lowering product prices by 10-15 percent. Furthermore, Agarwal says there was some improvement in demand during the festive season, but it fell almost immediately.

Below is the verbatim transcript of Vineet Agarwal’s interview with Latha Venkatesh & Sonia Shenoy on CNBC-TV18.

Sonia: Hypothetically, if and when the goods and service tax (GST) bill does get passed what kind of befits will your company see in terms of supply chain, XPS division or freight or seaways in terms of the cost coming down can you quantify that for us in anyway?

A: Essentially, what has been studied that once GST comes about there should be a 10-15 reduction in cost of products. Now how will this come about? Essentially what will happen is - consider a company that has let us say five manufacturing plants all over India and today they have may be 25 warehouses virtually in every state because of the CST and essentially to save taxes. So, the distribution matrix is 5x25 so there is a lot of movement going to these 25 warehouses.

Once GST come about the taxation structure becomes common. So, you don’t need to necessarily have 25 warehouses. You will probably have warehouses closer to the consumption centers. Hence you might have closed to maybe 15 warehouses. So, now your distribution matrix is changed from 5x25 to 5x15 so that has two major impacts.

First – is that kind of warehouses that you would need would be much larger. Instead of 25 warehouses now you have consolidated that in to 15 warehouses which means larger space, more management, better visibility of inventory hence lower cost and better economies of scale.

Secondly, the movement that will happen between these locations would increase because volume is a same but it has now been concentrated into 15 locations. So, that movement would mean there is a hub-and-spoke kind of movement. That could be multi model; it could be by road, by rail, by sea so that you get better cost efficiencies and hence lower prices.

The other thing that will happen hopefully with GST is that the movement of trucks between the states should improve. We should have smoother movement; we should have faster movement and less waiting time at the borders. So, all of this will have a direct impact on companies like us.

Read more at: https://www.moneycontrol.com/news/business/gst-will-lower-product-costs-by-10-15-tci_4437341.html