Shares of snack makers such as Bikaji Foods and Gopal Snacks soared over 5 percent on September 10 after the government slashed GST rates of namkeen and savoury products.
At Monday's 54th GST Council meeting, Finance Minister Nirmala Sitharaman announced that the GST rate on such products has been reduced prospectively to 12 percent from 18 percent earlier.
The FM stated that snacks made using the extrusion process would be taxed at 18 percent. However, other snacks and savoury items, such as bhujia, could potentially be subject to a 12 percent GST.
However, un-fried or uncooked snack pellets produced through extrusion will continue to be taxed at a GST rate of 5 percent.
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Bikaji Foods International is an ethnic snacking company primarily involved in the manufacturing, purchase and sale of snacks food. The company offers a range of products across six categories: bhujia, namkeen, sweets, papad, western snacks and other snacks.
At 9:30 am, shares of Bikaji Foods were trading 5.2 percent higher at Rs 879 on the National Stock Exchange (NSE). So far this year, the stock has surged around 53 percent.
Prataap Snacks is also a snack food company engaged in manufacturing and marketing of multiple product variants like potato chips, extruded snacks and namkeen (traditional Indian snacks) under the Yellow Diamond brand.
Prataap Snacks stock was up 5.7 percent at Rs 859 on NSE. On a year-to-date basis, the counter is down around 27 percent.
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Gopal Snacks is an FMCG company dealing in ethnic snacks, western snacks, and other products. It is engaged in the business of manufacturing various types of ready-to-eat namkeens, snack pallets, corn products, potato chips, papad, besan, spices, etc.
Gopal Snacks shares were trading 4.5 percent higher Rs 341.40 on NSE. So far this year, the stock has fallen over 9 percent, underperforming benchmark Nifty 50 which has gained around 14 percent during this period.
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