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
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
P&L Statement
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%
C) Cash Flow Statement
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
*All the data as per 2023

Recommendation on Gopal Snacks Limited IPO:

Registrar of Gopal Snacks Limited IPO:

  1. Link Intime India Private Limited

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/

Discussion on Gopal Snacks Limited IPO:

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