J.K. Cement share down by more than 3% today, on profit booking

J.K Cement shares are down today. At 1:00 p.m. IST today, 22^nd August, the share price is down by 3.88%, trading at Rs 6,857. Nifty 50 index is down by 0.66% at this time.

The share is seeing profit booking today, after the gains of the past two days. The stock has gained 5.66% in the past one month. Year-to-day the share has gained 49.65%. Nifty 50 index is up by 4.95% in this period. 52-week high price of J.K. Cement currently is Rs 7,565.50. 52-week low price of the stock is Rs 3,891.45.

JK Cement to benefit from GST rate cut

JK Cement is likely to benefit from the announcement that government will cut down GST rates by this Diwali. Cement is currently taxed at 28% GST rate. Under the GST reform approved by GST council of Ministers, the 28% tax slab will be done away with. There will be only two tax slabs of 5% and 18%. One additional slab of 40% will be there for goods classified as sin goods. So cement is likely to be taxed at a lower rate of 18% under the new GST structure.

This will be a big relief for cement companies like JK Cement. The price of cement for customers will go down. This in turn will give a boost to demand for cement. Cement companies can also retain some of the tax cuts as higher profit margin for themselves.

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Source: NSE