Stationery stocks surged up to 10% during Thursday’s trading session after the Goods and Services Tax (GST) Council implemented significant tax rate reductions on educational supplies, a decision that is expected to alleviate household expenses and may boost demand for stationery products, as per experts.
Starting September 22, 2025, the GST on items such as pencils, crayons, pastels, drawing charcoal, chalk sticks, and tailor’s chalk will be reduced from 12% to zero. Additionally, exercise books, graph books, laboratory notebooks, and notebooks will also be exempt from GST, in contrast to the previous 12% rate.
Shares of DOMS Industries, Sundaram Multi Pap, Kokuyo Camlin, and Linc surged by 5-10%. As noted by Prabhudas Lilladher, the Council’s decision to exempt and lower taxes on essential educational supplies aims to alleviate costs for students and families. This is anticipated to boost sales in the stationery sector, which is mainly led by organised companies like DOMS Industries, Navneet Education, Kokuyo Camlin, Sundaram Multi Pap, and ITC’s Classmate brand.
Prabhudas Lilladher continues to hold a BUY recommendation with a target price of ₹3,087, indicating potential for further growth.
The brokerage notes that DOMS Industries, which has shown impressive growth, is benefiting from the timing of this tax reduction. The company recently announced Q1FY26 revenues of ₹5,623 million, reflecting a year-on-year increase of 26.4%, driven by strong performance in its primary stationery division. The introduction of new products and expansion of distribution (with 20,000 additional touchpoints over the past year) position DOMS well to seize additional demand.
Competitors such as Navneet Education and Kokuyo Camlin are also expected to gain from increased affordability and higher sales volumes during the back-to-school season and festive times, according to the brokerage.
The reductions in stationery taxes accompany a broad GST overhaul intended to simplify the system and promote consumption. Although these changes may lead to a temporary decline in government revenue, the Centre anticipates that increased demand will compensate for this through improved compliance and a broader tax base.
Technical Views
According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, DOMS Industries share price have seen a price and volume breakout, it has surpassed 200dsma and the positive momentum is likely to continue, immediate support is at 200dsa ₹2,500 whereas ₹2,900 is immediate target.
Further, Bhosale explained that for Kokuyo Camlin shares the morning gap up and gains have fizzled out and stock prices continue to trade in range. Positive momentum could trigger only on a close beyond ₹125.
Linc shares have gained 4% but the overall chart structure remains of consolidation, bullish breakout will be confirmed if ₹140 is crossed on flip side 120 is support, according to Rajesh.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
