Gopal Snacks IPO draws brokerage attention with growth prospects

FMCG company Gopal Snacks tapped the primary market on March 6 with a Rs 650-crore public issue that has attracted the brokerage attention with robust growth prospects for the maker of ethnic and western snacks and other products for both domestic and international markets.

Analysts at Sharekhan believe that at the upper and lower price band, Gopal Snacks is valued at a discount to its nearest peers Prataap Snacks and Bikaji Foods International.

Master Capital Services recommended investors to 'subscribe' to the issue with a medium-to-long-term perspective. 

This is because the company intends to further enhance its presence in the core market of Gujarat and accelerate expansion in focus markets of Maharashtra, Rajasthan, Madhya Pradesh and Uttar Pradesh. 

These locations have been strategically chosen based on their geographical proximity to the company’s manufacturing facilities and the potential for expanding the product portfolio in those regions.

On the financial front, the company recorded a revenue of Rs 1,394.65 crore for FY23, marking a CAGR of 11.15 percent during FY21-FY23.

Its net profit CAGR was 130.65 percent or Rs 112.4 crore during the same period largely aided by a strong operating performance. Gopal Snacks was founded in 1999.