Shares of Inner wear maker Page Industries fell 0.5 percent after global brokerage Credit Suisse downgraded the company to `Underperform' from `Neutral' based on fears of the GST risk not priced in.
Page Industries fell 62.20 rupees to 14,670 on the National Stock Exchange. Nearly 4,500 shares changed hands on the Exchange. Page has surged 90 percent over one year and enjoys a market capitalisation of 16,300 crore rupees.
Credit Suisse says the rates of Indirect taxes on branded garments are likely to go up to 25 percent from 5 percent now, under the GST regime which is to be implemented in India. Both the timing of the implementation and the extent of higher taxation, however, are not known.
CS says Page's volume growth will be impacted in the year of GST's implementation even though the company had the necessary fire power to pass on the rise in taxes to the final consumer.
While it cut its rating on Page, CS raised the price target to `13,000 from `11,400 for the stock.
(Image credit: Indiatimes)