18% GST will be taken, yet will not be expensive for Swigi-Jomato? Know the game behind the curtain:

News India Live, Digital Desk: Stock Market: If you too often order food from Swiggy and Zomato or are thinking of putting money in their shares, then the news of 18% GST must have worried you too. The discussion in the market is hot that the government may soon impose 18% GST on the charge (such as delivery fees) on food delivery platforms. As soon as this news comes, questions started to arise in the minds of the people – will it become very expensive to ask for food online now? Will this make the business of these companies come to a standstill?

But wait, a big brokerage firm says that it is not as bad as it looks. Renowned financial firm Motilal Oswal has released a report on this, in which he has said that this GST will not have any special negative effect on Swiggy and Zomato business and there is absolutely no need for investors.

Why is there nothing of anxiety?

Experts of Motilal Oswal believe that even though 18% seems big to listen to GST, this effect will be very modest when you see it on your entire order. Let’s understand it in easy language:

• Very small effect: According to the report, even if this tax is levied, it will have only 1.5% to 2% effect on the total order value of the customer. That is, your order of 500 rupees will probably make a difference of 8-10 rupees.
• Customers are addicted: Today’s customers have already become accustomed to pay things like delivery fees, platform fees, and surge charge at peak time. In such a situation, due to a small increase of Rs 8-10, they will stop ordering food, it is very less likely.
• Focus on profits: These companies are now focusing on their profits more than increasing the number of customers. Therefore, they are already adjusting their fees in this way, so that their earnings will remain.

Good news for investors: 30% profit estimate

Given this stable approach, Motilal Oswal is quite positive about the future of Swiggy and Jomato. He has said in his report that despite these concerns, the company’s shares still have power.
The brokerage firm has estimated a 30% increase for Jomato shares, ie they believe that the stock can go up 30% from the current price. They believe that these companies are constantly moving towards profits, their customers are standing on them, and their grip in the market remains strong.

Overall, if you are a customer then be ready for a little inflation, and if you are an investor then there is no need to panic with this news, because the future of these companies is looking bright in a long race.