HUL, Colgate to gain if mass items taxed @18%: Religare Cap

Varun Lohchab, MD & Head, Research at Religare Capital Markets said that within the consume sector, it seems the new GST rates will be positive for ITC. For other FMCG items, it would depend on what slabs under which goods fall.

Mass consumption items if they were to fall under 18 percent and not 28 percent, beneficiaries will be Unilever and Colgate. For other companies, it will be difficult to say anything now, he said.

For Godrej, it could be a bit inflationary, he said, adding that it won’t be affected by new rates. "It might be close to neutral.”

He has a target of Rs 270 for ITC and a buy rating on the stock.