Complex fertiliser makers to benefit more from lower GST

Deepak Fertilisers, GSFC were among top gainers in the fertiliser space

The government’s last-minute move to reduce the goods and services tax (GST) rate to 5 per cent from the proposed 12 per cent boosted the Street’s sentiment on Monday. The stocks of fertiliser producers such as Zuari Agro, Coromandel International, Chambal Fertilisers, National Fertilizers and Deepak Fertilisers gained between 1.4 and 11.33 per cent on Monday. And for good reason.
 

The earlier 12 per cent rate under the GST regime compared to about 5 per cent that existed in most states prior to the GST era, was a cause of concern. There was no clarity on how companies will pass