Colgate, Britannia among top gainers from India's consumer tax cuts, analysts say

Colgate-Palmolive

04/09/2025 09:23

** Analysts at Nomura and Jefferies say Colgate COLG.NS, Britannia Industries BRIT.NS and Nestle India NEST.NS  will be the key beneficiaries of tax cuts on everyday items

** Government slashed rates to 5% on a wide range of everyday items including personal care products, household goods and packaged foods.

** Colgate, up 3.6%,  was the top gainer on Nifty FMCG index .NIFTYFMCG which rose 0.7%

** Britannia, Dabur and Nestle were also among the top gainers on the index, gaining 3%, 2.2% and 1.7%, respectively

** Nomura expects 100% of COLG's portfolio to benefit from tax cuts, while Jefferies estimates that number to be 95%

   ** 85% of Britannia's portfolio to benefit - Nomura and Jefferies

   ** Analysts flag that around 70% of Nestle's and 50%-60% of Dabur's portfolio to benefit

** Median PT for Colgate is 2472 rupees, Britannia's at 5900 rupees; Nestle and Dabur at 1200 and 545 rupees, respectively - data complied by LSEG

Key beneficiaries of India's GST rate reduction https://reut.rs/4m0eyfY

Key beneficiaries of India's GST rate reduction https://reut.rs/47WpoQQ

 (Reporting by Nishit Navin in Bengaluru)

 ((nishit.navin@thomsonreuters.com))