Gopal Snacks
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Gopal Snacks Limited is poised for significant growth, driven by management's strategic focus on operational efficiency and distribution expansion following the stabilization of its Rajkot manufacturing facility. The company is targeting over 20% revenue growth in FY27, supported by a robust distribution network and innovative product offerings. Management's commitment to maintaining stable margins through selective price adjustments and grammage changes is crucial, especially in the face of rising raw material costs. Vista's financial outlook reflects this optimism, with expectations of accelerating revenue growth and stable profit margins, aligning with the company's goal of achieving 11-11.5% EBITDA margins by mid-FY28. However, potential headwinds such as inflationary pressures and geographical concentration risks in Gujarat warrant close monitoring. The FMCG sector's favorable macroeconomic conditions, including strong consumer demand and e-commerce growth, further bolster Gopal's outlook. Over the next 12-24 months, key opportunities include leveraging its expanded capacity and distribution network, while watchpoints include managing commodity price volatility and ensuring operational continuity amidst external challenges
Why We Like This Stock
- Successful stabilization of the Rajkot facility enhances production efficiency and supports margin expansion
- Management's focus on distribution expansion and product innovation is expected to drive over 20% revenue growth in FY27
- Favorable macroeconomic conditions and strong consumer demand in the FMCG sector provide a supportive backdrop for growth
Things To Watch Out For
- Rising raw material costs and inflationary pressures could impact profit margins if not effectively managed
- Geographical concentration risks in Gujarat may expose the company to regional economic fluctuations
- Potential operational disruptions from energy supply issues could hinder growth and margin targets
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,402 | 1,468 | 1,508 | 1,714 | 1,873 |
| Profit Before Tax (Cr.) | 132 | 72 | 60 | 66 | 80 |
| PBT Margin | 9.4% | 4.9% | 4.0% | 3.9% | 4.3% |
| Net Profit (Cr.) | 100 | 41 | 50 | 52 | 63 |
| Earnings Per Share | 8.0 | 3.3 | 4.0 | 4.2 | 5.1 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Emkay Global | ▲ Buy | 425 | 11-Aug-2026 |
| Motilal Oswal | ▲ Buy | 390 | 11-Aug-2026 |
Company Overview
Show Company Profile
Gopal Snacks Limited engages in the manufacturing and marketing of namkeen, gathiya, papad, and western snacks in India and internationally. It offers snack pellets, wafers, beverages, papad, spices, extruded snacks, popcorn, edible oil, wafer biscuits and rolls, papad, besan, nachos, spices, chikki, cupcakes, noodles, rusks, soan papdi, washing and bathing bars, and flour, as well as jaggery. The company offers its products under the Gopal, BONOVA, GOPS, GO YUMZ, Cristos, Shot GO, and Cornigo brand names. It provides its products through wholesalers, retailers, local shops, supermarkets, and e-commerce. The company was founded in 1999 and is headquartered in Rajkot, India.