Gopal Snacks Limited IPO
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This business overview presents a comprehensive and detailed insight into the operations, market position, and financial growth of a leading Fast-Moving Consumer Goods (FMCG) company in India, primarily focused on ethnic and western snacks. Here’s a breakdown of the key points covered in the overview:
Market Position and Achievements
- The company is positioned as the fourth largest brand in India’s organized sector of ethnic savouries, specifically excelling in gathiya production and sales, both in terms of volume and revenue.
- It holds the title of the largest manufacturer of snack pellets in India by production volume.
- In Gujarat, a state with high snack consumption, the company ranks as the second largest organized ethnic namkeen manufacturer and the fourth largest in India in terms of sales revenue.
- It also stands as the fourth largest papad manufacturer by sales revenue in India.
Product Portfolio and Distribution Network
- The company offers a diversified product range under the brand ‘Gopal’, including ethnic snacks like namkeen and gathiya, western snacks, and other FMCG products.
- It operates an extensive distribution network across India, leveraging e-commerce, modern trade, and exports, supported by a sophisticated distribution management system.
Brand and Marketing
- Through strategic marketing and brand-building initiatives, the company has established a strong brand recall and loyal customer base.
- Marketing efforts include various advertising channels and sponsorship of significant events like the Women’s Cricket Premier League.
Strategic Insights
The overview highlights the company’s robust position in India’s organized snack market, driven by a diverse product portfolio, strong manufacturing and distribution capabilities, and effective brand-building strategies. The financial growth indicators, along with market projections, suggest a positive outlook for the company’s future expansion and profitability. This blend of strategic operations, market leadership in niche segments, and financial robustness positions the company well for leveraging growth opportunities in India’s burgeoning FMCG sector.
Objects of the Gopal Snacks Limited IPO:
The Company will not receive any proceeds from the Offer (the "Offer Proceeds") and all the Offer Proceeds will be received by the Selling Shareholders, in proportion to the Offered Shares sold by the respective Selling Shareholders as part of the Offer.
Gopal Snacks Limited IPO Details:
| Open Date: | Mar 06 2024 |
| Close Date: | Mar 11 2024 |
| Total Shares: | 16,209,476 |
| Face Value: | ₹ 1 Per Equity Share |
| Issue Size: | 650.00 Cr. |
| Lot Size: | 37 Shares |
| Issue Price: | ₹ 381 - 401 Per Equity Share |
| Listing At: | NSE,BSE |
| Listing Date: | Mar 14 2024 |
Promoters And Management:
Bipinbhai Vithalbhai Hadvani is one of the Promoters of the Company and is currently the Chairman and Managing Director of the Company. He has completed his matriculation from the Gujarat Secondary Education Board, Gandhinagar, Gujarat India and has been associated with the Company since incorporation. He has experience in the food industry including in the field of business operations since 1994. He is currently also on the board of Gopal Agriproducts and Gopal Snacks Foundation.
Dakshaben Bipinbhai Hadvani is one of the Promoters of the Company and is currently the Executive Director of the Company. She holds a bachelor of arts (special and without English) degree in sociology from Saurashtra University, Rajkot, Gujarat, India. She has been associated with the Company since November 18, 2015. She has experience in the field of human resources. She is currently also on the board of Gopal Agriproducts and Gopal Snacks Foundation.
Raj Bipinbhai Hadvani is the Whole-time Director and Chief Executive Officer of the Company. He holds a master of business administration degree in entrepreneurship and family business from SVKM’s Narsee Monjee Institute of Management Studies, Mumbai, Maharashtra, India, upon completion of which he joined the Company on April 1, 2017. He has experience in the field of marketing.
Financials of Gopal Snacks Limited IPO:
A) Balance Sheet
P&L Statement
C) Cash Flow Statement
| Particular (In Million) | Mar-21 | Mar-22 | Mar-23 |
| Equity Share Capital | 11 | 11 | 124 |
| Reserves | 1,345 | 1,765 | 2,784 |
| Borrowings | 1389 | 1641 | 1064 |
| Trade Payables | 175 | 69 | 93 |
| Other Liabilities | 498 | 511 | 547 |
| Total Liabilities | 2,062 | 2,221 | 1,704 |
| Net Block | 1,580 | 1,971 | 2,226 |
| Capital Work in Progress | 434 | 468 | 99 |
| Investments | 5 | 17 | 24 |
| Other Assets | 192 | 204 | 202 |
| Total NC Assets | 2,211 | 2,660 | 2,551 |
| Receivables | 75 | 140 | 114 |
| Inventory | 868 | 872 | 1,448 |
| Cash & Bank | 18 | 11 | 286 |
| Other Assets | 215 | 314 | 213 |
| Face value | 1 | 1 | 1 |
| Particular (In Million) | Mar-21 | Mar-22 | Mar-23 | Sep-30 |
| Revenue from Operations | 11,289 | 13,522 | 13,945 | 6,762 |
| Raw Material Cost | 9,188 | 10,518 | 9,901 | 4,632 |
| Purchases | 42 | 240 | 194 | 137 |
| Change in Inventory | 12 | -23 | -107 | -34 |
| Employee Cost | 590 | 772 | 873 | 484 |
| Other Expenses | 853 | 1,066 | 1,124 | 601 |
| EBITDA | 604 | 949 | 1,960 | 942 |
| EBIDTA Margin | 5.35% | 7.02% | 14.06% | 13.93% |
| Other income | 10 | 43 | 39 | 18 |
| Depreciation | 240 | 311 | 374 | 170 |
| Interest | 109 | 139 | 108 | 41 |
| Profit before tax | 265 | 541 | 1,518 | 750 |
| Tax | 54 | 125 | 395 | 194 |
| Net profit | 211 | 416 | 1,124 | 556 |
| NPM (%) | 1.87% | 3.07% | 8.04% | 8.20% |
| Particulars (In Million) | Mar-21 | Mar-22 | Mar-23 |
| Cash From Operating Activity | |||
| Profit Before Tax | 265 | 540 | 1518 |
| Operating Profit | 605 | 984 | 1990 |
| Receivable | -41 | -68 | 25 |
| Inventory | -255 | -4 | -576 |
| Payable | -64 | -105 | 24 |
| Other WC Items | 35 | -383 | 14 |
| Working Capital Changes | 37 | -133 | 164 |
| Direct Taxes | -59 | -89 | -412 |
|
Net Cash Inflow from Operating Activity
|
224 | 586 | 1,215 |
| Cash from Investing Activity | |||
| Fixed assets purchased | -765 | -754 | -254 |
| Fixed assets sold | 6 | 24 | 1 |
| Investments purchased | 1 | -11 | -7 |
| Other investing items | 1 | 1 | 9 |
|
Net cash inflow from investing activities
|
-756 | -740 | -251 |
| Cash from Financing Activity | |||
| Proceeds from borrowings | 982 | 842 | 0 |
| Repayment of borrowings | -304 | -591 | -577 |
| Interest paid fin | -102 | -131 | -106 |
| Financial liabilities | -1 | -2 | -4 |
| Net Cash Flow | 43 | -37 | 276 |
Comparison With Peers:
| Name of the Companies | Revenue (Cr) | Profit (Cr) | EPS | P/E | CMP | Mcap (Cr) |
| Gopal Snacks Limited | 1,398 | 112 | 7.9 | 50 | 401 | 5646 |
| Bikaji Foods International Limited | 1,944 | 128 | 5.12 | 68 | 524 | 13,110 |
| Prataap Snacks Limited | 1,653 | 20 | 8.6 | 125 | 1069 | 2,553 |
Recommendation on Gopal Snacks Limited IPO:
Lead Manager of Gopal Snacks Limited IPO:
Registrar of Gopal Snacks Limited IPO:
Company Address:
Gopal Snacks Limited
Plot Nos. G2322, G2323 and G2324
GIDC Metoda, Taluka
Lodhika, Rajkot -360 021
Phone: +91 28 2728 737
Email: cs@gopalsnacks.com
Website: https://www.gopalnamkeen.com/
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