DINESH

Gopal Snacks

Industry: FMCG
Latest CMP 272
Today's Change ▼ -1.63%
52-Week High / Low 385 | 251
Price Date: 14-Aug-2026
Recommendation Buy
Target Price 345
Expected Upside 12.5%
Forecast Horizon 2 Years
Historical CAGR Not Available
1,000 Invested
Today's Value
Investment Period < 5 Years

Stock Snapshot

Post Results Return
+3.2%
Mild Positive Re-rating
1-Year Target Price
313
2-Year Target Price
345
52-Week High / Low
385 / 251
20-Day Return
+3.1%
Market Cap (Cr.)
3,394
Current PE
67.0
P/BV Ratio
6.8
Dividend Yield
0.3%
Industry PE
42.0

Price Performance

Basis of our Recommendation

Gopal Snacks is currently navigating a pivotal phase of operational transition, primarily driven by the successful commissioning of its Rajkot plant, which is expected to enhance manufacturing efficiencies and logistics. Management has set an ambitious target of over 20% revenue growth for FY27, supported by a robust distribution expansion strategy and biweekly servicing in core markets, which has already shown positive traction. This optimism is reflected in Vista's forecast, which anticipates accelerating revenue growth beyond historical levels, with stable profit margins projected. However, the company faces significant challenges, including geographical concentration risks and raw material inflation, which could pressure margins if not effectively managed. The FMCG sector's overall growth trajectory, characterized by volume expansion and strategic price adjustments, provides a favorable backdrop, although competitive pricing pressures remain a concern. Over the next 12-24 months, key opportunities include leveraging expanded capacity and distribution networks, while watchpoints include managing inflationary pressures and operational continuity amidst energy supply disruptions

👍 Why We Like This Stock

  • Successful commissioning of the Rajkot plant is expected to optimize costs and support margin expansion
  • Management's ambitious revenue growth target of over 20% for FY27 is underpinned by a robust distribution strategy
  • Expansion of the distribution network and product innovation are likely to enhance market penetration

Things To Watch Out For

  • Geographical concentration in Gujarat poses a risk to revenue stability
  • Ongoing raw material inflation could pressure profit margins if not managed effectively
  • Operational continuity may be challenged by energy supply disruptions

Key Parameters

Balance Sheet Strength
Conservatively Financed
Market Share
Stable
Industry Outlook
Weakening
Analyst View
Strong Buy
Dividend History
Consistent
FII Holdings
Stable

Financial Snapshot

Actuals Forecast
FY24 FY25 FY26 FY27 FY28
Revenue (Cr.) 1,402 1,468 1,508 1,718 1,853
Profit Before Tax (Cr.) 132 72 60 67 82
PBT Margin 9.4% 4.9% 395.8% 3.9% 4.5%
Net Profit (Cr.) 100 41 50 53 65
Earnings Per Share 8.0 3.3 4.0 4.3 5.2

Analyst Recommendations

Broker Recommendation Target Price Date
Emkay Global ▲ Buy 425 11-Aug-2026
Motilal Oswal ▲ Buy 390 11-Aug-2026
Consensus Recommendation ▲ Strong Buy
Consensus Target 408
Coverage 2 Analysts
Analysts' Viewpoint
Gopal Snacks' operational transition is bolstered by the Rajkot plant, which enhances manufacturing efficiency and logistics, aiding margin improvement. The company's distribution expansion and biweekly servicing have already shown significant revenue growth, with plans to reach 0.6 million retail outlets by FY27. However, reliance on the Gujarat market poses concentration risks, and raw material inflation remains a challenge. Expansion into markets like Maharashtra is anticipated to support long-term growth.

Company Overview

Show Company Profile

Gopal Snacks Limited engages in the manufacture and market namkeen, gathiya, papad, and western snacks in India and internationally. It offers a range of products, including snack pellets, wafers, extruded snacks, papad, besan, spices, chikki, noodles, rusk, soan papdi, washing bar, and flour, as well as jaggery. The company offers its products under the Gopal, Bonova, Cristos, Shot Go, and Cornigo brand names. It also offers its products online. The company was founded in 1999 and is based in Rajkot, India.