FMCG Stocks In Focus: These are the key beneficiaries of the GST rate change

The GST Council on Wednesday night approved a two-slab GST structure, that of 5% and 18%, with a special rate of 40% on Sin and Luxury goods. The existing slabs of 28% and 12% will be done away with. This confirms multiple CNBC-TV18 newsbreaks with regards to the GST rate rationalisation, which were reported since Prime Minister Narendra Modi's Independence Day address on August 15.

Brokerage firm Nomura wrote in a note that the council bringing down GST for a number of staples and essential categories from 18% to 5%, is a meaningful reduction and will bring relief to stressed consumption, aid volume growth, and drive formalisation, as quite a few categories in India have a notable share from unorganised players.

Here are some of the key FMCG stocks that are likely to benefit from this GST rate rationalisation:

Colgate

100% of the company's portfolio benefits as toothpaste, toothbrush and personal wash go from 18% to 5%, while toothpowder goes from 12% to 5%.

Britannia

Nearly 85% of its portfolio will benefit as biscuits and cakes, which account for 78% of its overall sales, go from 18% to 5%, while Dairy, which is 5% of Britannia's overall sales, also moves to 5%.

Nestle India

As much as 67% of the overall sales of the company will benefit, as coffee and chocolates, which is nearly a third of its overall sales, drop to 5% from 18%, while noodles, milkmaid, also drop to 5%. Noodles and Milkmaid form 35% of the overall sales.

Dabur

Nearly half of its consolidated sales will benefit from this move as 28% sales for the company comes from toothpastes and hair oils and shampoos, moves to 5% from 18%. Along with this, 25% of its overall sales, which come from juices, digestives, ethical and toothpowder also moves from 12% to 5%.

Hindustan Unilever

37% of HUL's overall sales, which comes from saps, shampoos, toothpastes, health food drinks and coffee goes from 18% to 5%, while sauces, jams, mayonnaise, noodles, which account for nearly 3% of the overall sales, move from 12% to a 5% GST rate.

This story will be updated with more names.