Business Overview
Way back in 1999 , Gopal Grah Udyog was founded as a partnership firm by Mr. Bipin Hadvani. The primary objective is to supply the general public with Namkeen and snacks. Later on it was formed into a company called ‘Gopal Snacks’. Currently it is the biggest manufacturer and supplier of ‘Gathiyas’ ( special type of gujrati namkeen) and fourth largest brand in the field of namkeen.
Currently ‘Gopal Snacks’ has the combination of both western and desi snacks. Under the brand name "Gopal" , company manages products portfolio of both perishable and non perishable items i.e. papad, Nuts, strawberries and specially besan. As per DRHP dilled with SEBI company manages 84 products range and nearly about 275 stock keeping units. There desi snacks consist of Gathiyas and Namkeen while majorly western snacks are wafers and snacks pallets.
When it comes to snack pellets and gathiya, it enjoys dominant positions in production, volume and sales revenues. Based on revenues, company ranked 4 largest packaged national manufacturers in India and the 2 largest in Gujarat. Apart from this Gopal Snacks plays a vital role in terms of ‘papad” manufacturing. Ranked 4 among top big players in the country, as of 30 September 2023, it has a huge network of nearly 615 distributers along with 520 retail stores. Moreover ‘Gopal snacks’ provides its products in more than 10 Indian states and in 2 US territories also as it has six factories are located in Gujarat: Rajkot and Modasa, while the other two are in Nagpur, Maharashtra. Their annual installed capacity in all their facilities was 404728. 76 MT/year.
Objectives of GOPAL SNACKS IPO
As per the draft red herring prospectus, the offer comprises a complete exit for current sharholders as an offer for sale upto Rs 650cr. In addition to that company also enjoys the benefit of listing their shares in stock market. So conclusively net proceeds from this IPO will be used by existing shareholders, not a single penny will be used in company account.
GOPAL SNACKS IPO Issue Size, Price &Launch Date
According to the draft red herring prospectus document, the total issue size of the GOPAL SNACKS IPO is Rs 650 crore, completely an offer for sale. No fresh issue.
| IPO Open Date | 6 March | |
| IPO Close Date | 11 March | |
| Basis of Allotment | 12 March | |
| Listing Date | 14 March | |
| Face Value | Rs 2 per share | |
| Price | Rs 380-401 | |
| Lot Size | 37 shares | |
| Total Issue Size | [.] shares (aggregating up to Rs 650.00 crore) |
|
| Fresh Issue | NIl | |
| Offer For Sale | [.] Shares, aggregating up to Rs 650 crore | |
| Issue Type | Book Built Issue IPO | |
| Listing At | BSE & NSE | |
| QIB Shares Offered | ||
| Retail Shares Offered | ||
| NII (HNI) Shares Offered |
GOPAL SNACKS IPO Financial Statements:
| Period Ended | 30-Sep-23 | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Assets | 434.54 | 461.28 | 399.72 | 341.89 |
| Revenue | 677.97 | 1,398.54 | 1,356.48 | 1,129.84 |
| Profit After Tax | 55.57 | 112.37 | 41.54 | 21.12 |
| Net Worth | 346.1 | 290.88 | 177.66 | 135.74 |
| Reserves and Surplus | 333.17 | 277.6 | 176.56 | 135.03 |
| Total Borrowing | 26.05 | 106.37 | 164.12 | 138.99 |
| amount in cr |
| Key Performance Indicator | |
| KPI | Values |
| ROE | 16.05% |
| ROCE | 20.83% |
| Debt/Equity | 0.08 |
| RoNW | 16.05% |
| P/BV | 14.43 |
| PAT Margin (%) | 8.22 |
| RESTATED STATEMENT OF PROFIT AND LOSS | |||||
| H1FY2023 | H1FY2022 | FY2023 | FY2022 | FY2021 | |
| Particulars | |||||
| Revenue: | |||||
| Revenues from operations | 6,761.95 | 6,993.01 | 13,946.53 | 13,521.61 | 11,288.61 |
| Other income | 17.78 | 12.81 | 38.85 | 43.14 | 9.8 |
| Total Income | 6,779.73 | 7,005.82 | 13,985.38 | 13,564.75 | 11,298.41 |
| Expenses: | |||||
| Cost of materials consumed | 4,631.26 | 5,176.21 | 9,901.46 | 10,517.56 | 9,187.84 |
| Purchase of stock-in-trade | 137.63 | 79.26 | 193.82 | 240.21 | 42.16 |
| Changes in inventories of finished goods, work-in-progress and stock in trade | -34.24 | -151.24 | -107.37 | -22.89 | 11.78 |
| Employee benefits expense | 484.03 | 427.66 | 872.8 | 772.36 | 590.39 |
| Finance costs | 40.69 | 61.81 | 108.44 | 139.24 | 108.76 |
| Depreciation and amortisation | 169.95 | 176.88 | 374.18 | 311.31 | 239.59 |
| Other expenses | 600.63 | 525.59 | 1,123.58 | 1,066.40 | 852.92 |
| Total expenses | 6,029.95 | 6,296.17 | 12,466.91 | 13,024.19 | 11,033.44 |
| Profit before tax | 749.78 | 709.65 | 1,518.48 | 540.56 | 264.97 |
| Tax expense: | |||||
| - Current tax | 139.13 | 140.97 | 395.45 | 122.09 | 59.25 |
| - Deferred tax | 55 | 49.08 | -0.66 | 3.09 | -5.5 |
| Total tax expense | 194.13 | 190.05 | 394.79 | 125.18 | 53.75 |
| Profit after tax | 555.65 | 519.6 | 1,123.69 | 415.38 | 211.22 |
| Earnings per equity share | |||||
| Equity shares of par value ₹1/- each | |||||
| Basic and Diluted | 4.46 | 4.17 | 9.02 | 3.33 | 1.7 |
| (All amounts in ₹ million | |||||
Source: DRHP
Financial Performance
H1Fy23 vs H1Fy22
- H1FY23 posts some negative results as compare to previous same six months. Topline witnessed a downfall of nearly 3% to Rs 6779.73 mn as compare to Rs 7005.8 mn in the corresponding previous months.
- Due to sharp decline in food products of nearly 2.50% EBITDA also showed some downside movement to Rs 6760 mn in H1FY23 as compare to Rs 6990 mn in the previous one.
Fiscal Fy23 vs Fy22
- Gopal snacks manages to record healthy and steady topline growth on yearly basis as compare to quarterly or half yearly performances. Yearly topline growth witnessed 3% on YOY basis to Rs 13985 mn from 13564 mn.
- Food made products sales also jumps from 12499 mn to 13450 mn on YOY basis however in this profile ‘snack pallets’ sale up by 11.30%, ‘wafers’ sale grew by almost 43%, ‘papad’ 12.67% and ‘ besan’ by almost 64%. Above all spices sale up by almost 330% on YOY basis.
Promoters & Shareholding of GOPAL SNACKS
Source: https://www.moneysukh.com/stocks/gopal-snacks-ltd
Key points to consider before investing in GOPAL SNACKS
So reading all this prior information it is very important to understand company’s major strength and weakness to apply or subscribe in its IPO. It is advisable to all clients to go through all the available documents including RHP and Financial documents to assess company picture in a broader view. Moreover any investor or subscriber should be very clear about their key positives and negatives which may influence company business in upcoming years. Here are some key points listed below-
Strengths of GOPAL SNACKS:
- Company enjoys significant position in domestic snacks markets on the basis of its quality and diversity.
- Top position in Gathiya manufacturing helps company to increase its market share.
- Diversified products and strategically located manufacturing units helps company to maintain its brand value.
- Integrated and advance business units maintains low cost business model with superior efficiency.
- Recently company started to explore and capture international markets also their products demands shown significant increase from Gulf countries.
- From last three fiscals FY21-FY23, topline growth was nearly 24%, EBITDA 80% coupled with double digit growth in EBITDA margin.
Weaknesses of GOPAL SNACKS:
- Product portfolio majorly comprises of Gathiyas and Snackpallets. Any change in consumer preferences or delay in market orders due to disruption in supply chains may significantly hit the company revenues in a short term.
- Post lockdown consumer preferences tend to shift for more healthy products especially for non oily segment. If this trend continues to remain same it will surely create an adverse effect on product demand.
- Gujarat being the key region in its sales vertical. Any political or demographical change or any negative change in operational counterpart may create a bigger dent in revenues.
- As products are in semi perishable category, any raw material issues, labeling errors, improper storage, and adulteration surely dampens the demand supply chain.
- As we have mentioned that company operates through 6 major plants. As per DRHP filled with SEBI, all plants are underutilized.
- As company lies in the category of FMCG products so it requires various approvals from FSSAI and other agencies. As per DRHP already there are more than 8 notices from these agencies asking various clarifications and inspection.
How to Apply for GOPAL SNACKS IPO?
If you have a trading account and demat account with any broker you can apply in this IPO, using their platform. However if you are a customer of Moneysukh and have both these accounts here and looking to invest in the GOPAL SNACKS IPO, then follow the steps given below.
Steps to Apply for GOPAL SNACKS IPO:
Step 1: Just open your browser and type trade.moneysukh.com.
Step 2: Use your existing Moneysukh user ID & password to log in.
Step 3: Now go to the IPO section and click on GOPAL SNACKS IPO.
Step 4: Fill in the required details like IPO cut-off price, quantity and other details.
Step 5: Before submitting make the required payment and then submit.
How to Check Allotment Status of GOPAL SNACKS IPO?
When the GOPAL SNACKS IPO bidding process is completed and the basis of the allotment date is arrived, you can check the allotment status. And to check the allotment status you need your PAN details and IPO application details. You can check the status online through BSE, NSE or Moneysukh.
If anyone doesn't get the allotment in the IPO, then the application money is refunded into the bank account or funds are unblocked if he or she has used the ASBA procedure to apply in the IPO. And if anyone gets the shares allotted into their bank account, then shares will be allocated into a demat account before the day of listing that you can either sell or hold for the long-term investment.
