Gopal Snacks is a well-established Indian FMCG (Fast-Moving Consumer Goods) company founded in 1999.
Their primary focus is on a wide variety of savory snacks under the “Gopal” brand. This includes both ethnic Indian snacks and western-style snacks.
Ethnic Snacks: This includes popular items like namkeen (savory mix) and gathiya (a fried gram flour snack)
other products – papad (A thin crispy Indian flatbread made from lentils like urad dal or moong dal) , Besan (Gram Flour) , spices , noodles ,other .
The strength of Gopal Snacks is that it does not rely on any one product. It has a diverse product portfolio, so if the sales of one product decline, it will not have a significant impact on the overall company.
About Gopal Snacks : They started with ₹5000. Today it is a ₹5000 crore company. Daily sales are 3 crore 80 lakh rupees. Daily profit is 30 lakhs after paying taxes and ₹ 1,398.54 crore turnover.
IPO (Initial Public Offering) : Notably, Gopal Snacks recently had a successful IPO (Initial Public Offering) in March 2024 . This signifies their growth and potential for future expansion.By offering a diverse range of savory snacks and other daily consumer goods, Gopal Snacks has carved a niche for itself in the Indian FMCG market. Their recent IPO highlights their potential for further growth in the coming years.
Their products are also available throughout India and are even exported internationally
The Gopal Snacks IPO was a book-built issue that ran from March 6th, 2024 to March 11th, 2024. The issue consisted entirely of an offer for sale of 16,209,476 shares and had a price band of ₹381 to ₹401 per share. The minimum lot size was 37 shares and the IPO aimed to raise ₹650 crore.The allotment for the Gopal Snacks IPO was finalized on March 12, 2024 and the shares were subsequently listed on the BSE and NSE on March 14, 2024.
P/E ratio = 44
Gopal Snacks 75% of the revenue comes from Gujarat and the rest of 25% majority of it comes from Maharashtra.99% of the manufacturing of Gopal Snacks is in-house.
Net fixed Asset turnover ratio (fiscal 2023) – 6.27
Gopal Snacks IPO Details
Gopal Snacks IPO Details :
| IPO Date | March 6, 2024 to March 11, 2024 |
| Listing Date | March 14, 2024 |
| Face Value | ₹1 per share |
| Lot Size | 37 Shares |
| Total Issue Size | 16,209,476 shares(aggregating up to ₹650.00 Cr) |
| Price Band | ₹381 to ₹401 per share |
| Issue Type | Book Built Issue IPO |
| Employee Discount | Rs 38 per share |
| Offer for Sale | 16,209,476 shares of ₹1(aggregating up to ₹650.00 Cr) |
| Listing At | BSE, NSE |
| Share holding pre issue | 124,604,370 |
| Share holding post issue | 124,604,370 |
Gopal Snacks Profile
| Sector | Consumer Non-Durables |
| Industry | Food: Specialty/Candy |
| Gopal Snacks Limited Details | Bipinbhai Vitthalbhai Hadvani lay the foundation stone for Gopal Namkeen in 1994. The venture, which began with the delivery of Namkeen and Snacks to Rajkot’s local market, gradually developed to reputable proportions. The bigger goal came true when the company established its own product line in Raj Nagar Society, Rajkot. The happy success of their venture prompted them to open a Gruh Udyog facility in Amar Nagar, Rajkot, during the first decade of the new millennium. With new aspirations and a new name ”Gopal Snacks Pvt. Ltd,” a semi-automatic facility at Vajadi (Vad) was put up shortly before the end of the decade to take a technological leap and improve the quality and flavor of the goods. |
The Gopal Namkeen IPO consisted of 16,218,612 shares, divided among various investor categories.Non-Institutional Investors (NIIs): Were allocated around 15% (2,418,329 shares).Retail Individual Investors (RIIs): Received the largest share, close to 35% (5,642,768 shares). This portion was further divided amongst 152,507 investors, with each receiving a minimum of 37 shares.Employees: Were offered a small portion (96,419 shares) at a discounted price.
Gopal Namkeen IPO Reservation
| Investor Category | Shares Offered | Maximum Allottees |
| Nll (HNI) shares offered | 2,418,329 (14.91%) | |
| Anchor Investor Shares Offered | 4,836,657 (29.82%) | NA |
| QIB Shares Offered | 3,224,439 (19.88%) | NA |
| bNII > ₹10L | 1,612,220 (9.94%) | 3,112 |
| sNII < ₹10L | 848,425 (5.23%) | 1,637 |
| Retail Shares Offered | 5,642,768 (34.79%) | 152,507 |
| Employee Shares Offered | 96,419 (0.59%) | NA |
| Total Shares Offered | 16,218,612 (100%) |
| Key Performance Indicator | Fiscal 2021 | Fiscal 2022 | Fiscal 2023 |
| Revenue from operations | 11,288.61 | 13,521.61 | 13,946.53 |
| Revenue Growth (%) | – | 19.78% | 3.14% |
| Gross profit | 2046.83 | 2786.73 | 3958.62 |
| Gross margin (%) | 18.13% | 20.61% | 28.38% |
| EBIDTA | 603.52 | 947.97 | 1,962.25 |
| EBIDTA Margin (%) | 5.35% | 7.01% | 14.07% |
| Profit After tax (PAT) | 211.22 | 415.38 | 1,123.69 |
| PAT Margin (%) | 1.87% | 3.07% | 8.06% |
| Return on Equity (ROE) (%) | 15.56% | 23.38% | 38.63% |
| Return on Capital Employed (ROCE) (%) | 13.48% | 18.69% | 43.08% |
| Net fixed Asset turnover ratio | 7.14 | 6.86 | 6.27 |
Listing Day trading information
| Price Details | BSE | NSE |
| Final Issue Price | ₹401.00 | ₹401.00 |
| Open | ₹350.00 | ₹351.00 |
| Low | ₹342.00 | ₹341.80 |
| High | ₹384.95 | ₹384.80 |
| Last trade | ₹360.05 | ₹362.70 |
Gopal snacks IPO Lot size
The lot size for the Gopal Snacks IPO was 37 shares. This means that the minimum number of shares you could bid for was 37, and any bids had to be in multiples of this amount.
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 37 | ₹14,837 |
| Retail (Max) | 13 | 481 | ₹192,881 |
| S-HNI (Min) (Sophisticated High Net Worth Individual) | 14 | 518 | ₹207,718 |
| S-HNI (Max) (Sophisticated High Net Worth Individual) | 67 | 2,479 | ₹994,079 |
| B-HNI (Min) (Big High Net Worth Individual) | 68 | 2,516 | ₹1,008,916 |
Gopal snacks IPO Listing Details
| Listing Date | March 14, 2024 |
| BSE Script Code | 544140 |
| NSE Symbol | GOPAL |
| ISIN | INE0L9R01028 |
| Final Issue Price | ₹401 per share |
The Gopal Snacks IPO listing took place on March 14, 2024. The IPO price band was ₹381 to ₹401 per share.
Despite the positive subscription, the stock ended up listing at ₹351, a significant ₹50 or 12.47% below the issue price.
The grey market premium (GMP) for the IPO was negative ₹25 on the listing date, indicating an expected loss for applicants.
Gopal Snacks stock buy or not?
I think Gopal Snacks is a good investment if you look at it in the long term.
Reasons why Gopal Snacks could be a good investment:
- The company has a strong track record of growth, with revenue and profits increasing steadily over the past few years.
- The Indian snack food market is growing rapidly, driven by factors such as rising disposable incomes, increasing urbanization, and changing consumer preferences.
- Gopal Snacks is well-positioned to capitalize on this growth, with a strong product portfolio, a robust manufacturing and distribution network, and a track record of innovation.
Overall, Gopal Snacks is a company with strong growth potential.This company can give good growth in the long term.But if you want to earn in short term then you can look at some other companies stocks.
Disclaimer: I am not a financial advisor and this is not financial advice. This is just my opinion. Please do your own research before making any investment decisions.
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FAQ?
Q: What is the GMP of Gopal snacks?
Ans. The last GMP for Gopal Snacks IPO was ₹-25, updated on Mar 14th 2024 10:32 AM. As per the last GMP, the expected profit/loss for the IPO was -6.23%. The issue price of Gopal Snacks IPO (GOPAL,544140) was ₹401.00, listed at a price of ₹351.00, which is -12.47% lower than the allotment price.
Q: Who are the competitors of Gopal Namkeen?
Ans. Some competitors of Gopal Namkeen:
1) BIKAJI. Brand of extruded snacks.
2) BRB. Brand of extruded snacks.
3) Haldiram’s Prabhuji. Brand of extruded snacks.
Q: What is Net fixed Asset turnover ratio?
Ans. The net fixed asset turnover ratio (FAT ratio) is a financial metric that tells you how efficiently a company uses its fixed assets to generate sales. In other words, it measures how much revenue a company gets for every rupee invested in fixed assets.A higher net fixed asset turnover ratio generally indicates better efficiency. It means the company is generating more sales with the same amount of investment in fixed assets.
Q: What is P/E ratio?
Ans. The P/E ratio, which stands for Price-to-Earnings Ratio, is a metric used to assess a company’s stock valuation. It compares the current market price of a company’s share to its earnings per share (EPS). In simpler terms, it tells you how much investors are willing to pay for every rupee of a company’s profit.
Q: What was the issue size of the Gopal Snacks IPO?
Ans. The issue size of the Gopal Snacks IPO was ₹650 crore. [It was an offer for sale (OFS) only, meaning no new shares were issued by the company].
Q: Where did the Gopal Snacks IPO get listed?
Ans. The Gopal Snacks IPO was listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on March 14th, 2024.
Q: What is Gopal Snacks’ main business?
Ans. Gopal Snacks is a fast-moving consumer goods (FMCG) company in India, offering ethnic snacks, western snacks, and other products across India and internationally.they are the 4th largest brand in the organized sector of ethnic savories (including gathiya) and the largest manufacturer of gathiya and snack pellets in India]
Q: When did the Gopal Snacks IPO take place?
Ans. The bidding window for the Gopal Snacks IPO was open from March 6th, 2024 to March 11th, 2024.