Gopal Snacks IPO: The Good and The Bad

[{"selector":"#anim-4ac013d4b818a4d631c19ba08e254159","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-00cc31c15065cb97dc167f388fe111d0","keyframes":{"transform":["translate3d(-104.48548%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

About the company

[{"selector":"#anim-9e2b3d2e5f5cf7f26ef2591b3a637fe0","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2adfd4beece0784736b39ec0ef06123e","keyframes":{"transform":["translate3d(-104.48548%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Gopal Snacks is a fast-moving consumer goods (FMCG) company selling ethnic and Western snacks under the brand name 'Gopal'.

IPO details

[{"selector":"#anim-768208ac2c18d2fa6644ef1496ed5484","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e780606e2909f1faef95950e64be758c","keyframes":{"transform":["translate3d(-104.48548%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Post IPO

[{"selector":"#anim-88fb5e3838a6f384d93d616306900944","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5a68ff3dd671b4c0af204798f835824d","keyframes":{"transform":["translate3d(-104.48548%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Financial history

[{"selector":"#anim-04b09e63710ee8392dcbd7655fefb226","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-20fe2bb982e395cd2c4ddae3d54706fd","keyframes":{"transform":["translate3d(-104.48548%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Key ratios

[{"selector":"#anim-71ac27c424eaf06686f94693a1894ba7","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a19114abc67d180d611a894fcc9a0ddf","keyframes":{"transform":["translate3d(-104.48548%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

The Good

[{"selector":"#anim-fae968e724b07fa1414d63cc60d7dbbb","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-179c6ecd59acac35fbd1f57f4a703e11","keyframes":{"transform":["translate3d(-104.48548%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] It is the fourth-largest packaged ethnic namkeen manufacturer in India (cont.)

The Good

[{"selector":"#anim-c6b1165c707711a475ae2163295682fb","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-eea7f8dcb7b4a05020af2dee7013ac2b","keyframes":{"transform":["translate3d(-104.48548%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] It is fully integrated both vertically and horizontally, providing high control over its products' quality and cost.

The Bad

[{"selector":"#anim-110c3776957676b0fb424383b632b698","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d5b14b301433b5ea8856912cda169a57","keyframes":{"transform":["translate3d(-104.48548%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] The FMCG segment is highly competitive. Declining capacity utilisation. Capacity utilisation fell from 40 per cent in FY21 to 28 per cent in FY23 (cont.)

The Bad

[{"selector":"#anim-40ff333ae4c0d5959330c58498e933af","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-264d1f283c508f8b7192ea81501a5295","keyframes":{"transform":["translate3d(-104.48548%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Revenue concentration. Gujarat and Maharashtra are its major revenue streams, with Gujarat accounting to 73 per cent of total revenue.

Risk Report

[{"selector":"#anim-5f9c3b8e064eb771eff9f3e2768d0cef","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1f2e47232c5551629c6573bfeeff35a2","keyframes":{"transform":["translate3d(-104.48548%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Is the company's net debt-to-equity ratio less than one? Yes. Its net debt-to-equity ratio, as of September 2023, was 0.1 times.

Thanks for Reading!

[{"selector":"#anim-db75fd78335bb796ffa6088f15088bf8","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f93e2647317a6c9b283d14c76b973354","keyframes":{"transform":["translate3d(-104.48548%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]