Vedant Fashions, the parent company of Manyavar, saw its stock decline by 2.7% today, closing at ₹1,395.35. The stock opened at ₹1,422.05, hit an intraday low of ₹1,367.00, and faced selling pressure throughout the trading session.
The decline follows a CNBC-TV18 report that the Group of Ministers (GoM) under the GST Council is deliberating revisions to tax slabs across various goods, including ready-made garments, footwear, cosmetics, and luxury items such as handbags and watches. Manyavar, which operates in the high-end ethnic wear and luxury segment, could face challenges if GST rates on these items are increased.
The GoM has also proposed a “special rate” of 35% on tobacco and aerated beverages, fueling speculation about potential tax hikes in other discretionary and luxury categories. Such revisions could impact the company’s pricing strategy, profit margins, and consumer demand.
Investors are awaiting further clarity from the GST Council on the proposed changes, which could have broader implications for the luxury retail segment.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a financial advisor before making any investment decisions.
