Moneycontrol
Nov 14, 2017 07:02 PM IST | Source: Moneycontrol.com

Credit Suisse upgrades HUL, Havells to outperform owing to GST rate revisions

Credit Suisse increased its earnings estimates for Jubilant Foodworks, Crompton Consumer, Nestle and GSK Consumer.

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Global brokerage house Credit Suisse has upgraded HUL & Havells to outperform from neutral owing to GST rate revisions.

It has raised target price for HUL to Rs 1,500 per share from Rs 1,250 and for Havells to Rs 600 from Rs 550.

The research house also increased its earnings estimates for Jubilant Foodworks, Crompton Consumer, Nestle and GSK Consumer.

It has maintained outperform rating on Nestle, GSK Consumer, Crompton Consumer and Jubilant Foodworks, with increased target price at Rs 8,700 (from Rs 8,200), Rs 7,100 (Rs 6,500), Rs 315 (Rs 290) and Rs 2,140 (Rs 2,000), respectively.

Last week, the Goods and Services (GST) Council, which met in Guwahati for a 2-day meet, slashed rates on 178 items to 18 percent from 28 percent.

The changes made to the GST Tax slabs will be applicable from 15th November 2017.

Of the 228 goods that are currently under the highest tax slab, 178 will see a reduction in taxation. These primarily include mass consumption products, leaving only 50 luxury and sin/demerit goods like air conditioners, automobiles paints, cement, washing machines and tobacco, among others, in the 28 percent slab.
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