Indiastockguru Team
Finance Minister, Nirmala Sitharaman announced a slew of GST cuts ranging from shared helicopter rides to cancer drugs to namkeens on September 10, 2024. “Namkeens, extruded, expanded savory food items, GST will be reduced prospectively, not retrospectively from 18% to 12%”, said Sitharaman at 54th GST council meet. Stock prices of three major namkeen and snack listed companies, Bikaji Foods International, Gopal Snacks and Prataap Snacks reacted positively after GST reduction.
Bhujia was already in the 12% category and now extruded and expanded snacks which are unfried will also offer lower GST rate to consumers. Bikaji is a major player with nearly Rs 2,400 crore annual sales in FY24. Namkeen constitutes more than 60% of Bikaji product portfolio. The company has received a pre-festive boost for H2FY25. The company’s stock price is up 66% over the past one year. Gopal Snacks and Prataap Snacks reported annual sales of Rs 1,400 crore and 1,627 crore respectively in FY24.
