Gopal Snacks Share
Gopal Snacks, a well-known player in India’s packaged snacks industry, is currently trading at ₹278.25, reflecting a 2.04% decline on Friday for the day. On Friday, Gopal Snacks shares one more 52 week low within a month. On 18 February stock closed near 278 and that was the recent low. Currently, Gopal Snacks Shares are trading below the all important moving averages. Gopal Snack share is currently trading below its IPO price also.
Stock Performance Overview
- Current Price: ₹278.25
- 52-Week Low: ₹273.85(till Friday)
- 52-Week High: ₹520.00
- 1-Day Change: -₹5.80 (-2.04%)
The current price indicates that Gopal Snacks is struggling near its yearly low, which could raise concerns among investors. The stock has seen a sharp decline from its peak of ₹520.00, suggesting a significant correction in its market valuation.
Why Gopal Snacks Share falling ?
Gopal Snacks’ share price has been on a downward trend due to a series of challenges that have impacted its financial performance. A major setback occurred on December 11, 2024, when a fire broke out at its manufacturing facility in Rajkot, Gujarat, leading to a temporary closure of operations. To mitigate disruptions, the company ramped up production at its Modasa and Nagpur plants while also relying on third-party manufacturers to maintain supply. However, despite these efforts, rising operational costs have weighed heavily on profitability.
In the September quarter of FY25, the company reported a 13.1% increase in expenses year-on-year, reaching ₹3,649.9 crore. This surge in costs led to a contraction in EBITDA margins by 111 basis points, dropping from 12.73% in the previous year to 11.62%. The impact of escalating expenses became even more evident in the December quarter of FY25, where Gopal Snacks experienced a sharp decline in net profit. The company reported a significant 70.3% drop in profit, falling to ₹5.3 crore compared to ₹17.9 crore in the same quarter the previous year, despite relatively stable revenue figures.
| Quarter | Revenue (Cr) | Profit (Cr) |
|---|---|---|
| Dec 2023 | 368 | 17.89 |
| Sep 2024 | 403 | 28.89 |
| Dec 2024 | 394 | 5.32 |
The financial results further highlight this pressure, with the company generating ₹368 crore in revenue and ₹17.89 crore in profit in December 2023. While revenue showed a slight increase to ₹403 crore in September 2024, profit rose to ₹28.89 crore. However, by December 2024, revenue remained steady at ₹394 crore, but net profit plummeted to ₹5.32 crore, reflecting the impact of increased operational expenses and higher raw material costs, particularly palm oil. These factors have collectively contributed to the decline in investor confidence, putting downward pressure on Gopal Snacks’ stock price.
Gopal Snacks Growth expectations
Gopal Snacks Limited, a prominent entity in India’s snack food industry, is projected to experience notable growth in its share value over the coming years. Analysts anticipate that the company’s earnings will grow by approximately 36.9% annually, with revenue expected to increase by 14.2% per annum. This robust growth trajectory suggests a favorable outlook for the company’s future performance.
These projections are underpinned by Gopal Snacks’ strong market presence, continuous product innovation, and strategic expansion into new markets. Investors should monitor the company’s performance and market trends to make informed decisions regarding their investments.
The packaged snack food industry in India has been experiencing significant growth, driven by factors such as a growing population, rising income levels, and evolving consumer preferences. According to a report by IMARC Group, the Indian snacks market size reached ₹42,694.9 crore in 2023 and is projected to reach ₹95,521.8 crore by 2032, exhibiting a compound annual growth rate (CAGR) of 9.08% during 2024-2032.
This growth is further supported by the increasing demand for packaged food, especially in rural areas. For instance, Tata Consumer Products reported an 8% increase in second-quarter net profit in 2024, driven by higher demand for packaged food. Additionally, global companies like Unilever are focusing on India as a key growth market, aiming to tap into the country’s rapidly increasing consumption.
Here’s a consolidated table of the financial data from both screenshots:
| Particulars | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Sales | ₹1,403 | ₹1,395 | ₹1,352 | ₹1,129 |
| Expense | ₹1,234 | ₹1,198 | ₹1,257 | ₹1,069 |
| Operating Profit | ₹168 | ₹196 | ₹95 | ₹60 |
| OPM % | ₹12 | ₹14 | ₹7 | ₹5 |
| Other Income | ₹4 | ₹4 | ₹4 | ₹1 |
| Interest | ₹5 | ₹11 | ₹14 | ₹11 |
| Depreciation | ₹36 | ₹37 | ₹31 | ₹24 |
| Profit Before Tax | ₹132 | ₹152 | ₹54 | ₹27 |
| Tax % | ₹24 | ₹26 | ₹23 | ₹20 |
| Net Profit | ₹100 | ₹112 | ₹42 | ₹21 |
| EPS | ₹8 | ₹9 | ₹3 | ₹2 |
This table presents the financial performance of Gopal Snacks over four years.
More About Gopal Snacks
Gopal Snacks Limited, commonly known as Gopal Namkeen, is a prominent Indian snack manufacturer based in Rajkot, Gujarat. Established in 1999 by Bipin Hadvani, the company has grown from a single-product venture into a diverse brand offering over 100 snack varieties, including traditional namkeens, wafers, extruded snacks, and sweets.
Gopal Snacks Manufacturing Facilities
Gopal Snacks operates multiple manufacturing facilities across Gujarat and Maharashtra, ensuring a robust distribution network that reaches over 4 lakh retailers across 10 Indian states and 2 Union Territories. The company’s product range has expanded to include ethnic snacks, western snacks, snack pellets, fast-moving consumer goods, and packaged sweets, catering to a wide array of consumer tastes.
Gopal Snacks IPO details
Gopal Snacks Limited launched its Initial Public Offering (IPO) between March 6 and March 11, 2024, with a price band set at ₹381 to ₹401 per equity share. The IPO was entirely an offer for sale, aiming to raise approximately ₹650 crore. On March 14, 2024, the company’s shares were listed on the stock exchanges at a discount. Specifically, they debuted at ₹350 on the BSE and ₹351 on the NSE, both reflecting a decrease of over 12% from the issue price. The IPO received a subscription of over nine times, with the qualified institutional buyers’ portion subscribed 17.50 times, non-institutional investors 9.50 times, and retail investors 4.01 times.
TOP 5 God Things about Gopal Snacks stock
- High Promoter Holding – A strong promoter stake indicates confidence in the company’s future growth.
- Growing Packaged Food Industry – Rising demand for packaged snacks ensures long-term growth potential.
- Established Brand – A well-recognized brand with a loyal customer base strengthens its market position.
- Good Return on Investment (ROI) – Efficient capital allocation drives profitability.
- Strong Return on Equity (ROE) – High ROE reflects strong financial performance and shareholder value creation.