Consumer durable stocks surge as PG Electroplast, Voltas, Amber rally up to 12% on GST cut hopes

Consumer Durable Shares Rally: Consumer durable stocks took off on Monday as investors grew hopeful about a possible GST rate cut on air conditioners and large TVs. Shares of PG Electroplast surged over 12 per cent, bouncing back after a rough patch, while Voltas and Amber Enterprises were up more than 8 per cent. Blue Star also saw strong buying, gaining around 7–9 per cent.

The rally comes on the back of Prime Minister Narendra Modi’s Independence Day speech, where he hinted at big GST reforms before Diwali — changes that could reduce tax rates for everyday consumers and businesses.

What’s driving the optimism in consumer durable?

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Right now, products like ACs and TVs over 32 inches fall under the 28% GST slab — making them more expensive for consumers. Analysts believe the government may soon move these items to the 18% GST bracket, bringing them in line with other electronics like smartphones, refrigerators, washing machines, and microwaves.

That’s a big deal, especially ahead of the festive season, when demand for appliances typically spikes.

What analysts are saying on consumer durable stocks

Brokerage firms are upbeat:

Jefferies sees a good chance that ACs could see a 10 per cent GST cut, which would boost affordability and drive demand

CLSA agrees, saying the move could help turn around a sector that’s been showing signs of weakness recently

If the tax cuts come through, it wouldn’t just lift sales — it could also improve profit margins for manufacturers who’ve been squeezed by rising input costs.