Shares of Doms Industries Ltd surged 6.77% to ₹2,672.80 on Thursday, September 4, after the GST Council cut taxes on key education-related items to nil, a move widely seen as a direct positive for the stationery sector.
GST relief for education products
Under the revised GST structure, effective September 22, the following cuts have been announced:
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Maps, charts, globes: 12% → 0%
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Pencils, sharpeners, crayons, pastels: 12% → 0%
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Exercise books, notebooks: 12% → 0%
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Erasers: 5% → 0%
This reform is expected to make stationery items more affordable, spurring consumption across schools and households.
Doms emerges as key beneficiary
As one of India’s largest stationery and education products manufacturers, Doms stands to benefit significantly from lower tax incidence. The company, known for its strong presence in pencils, crayons, and notebooks, is expected to see higher demand volumes once the revised GST rates are implemented.
Sector-wide impact
Other listed stationery and education-focused companies are also likely to gain from this reform. Analysts believe the GST exemption will not only boost domestic sales but also support export competitiveness for Indian stationery players in global markets.
Market outlook
Brokerage experts suggest that the GST cuts could improve margins and accelerate growth for Doms Industries in the coming quarters. The move also aligns with the government’s push for affordable education and could be a sustained tailwind for the sector.
