🧠 At a Glance
Gopal Snacks Ltd, famous for its spicy snacks and IPO buzz, is now facing margin meltdown. While the company is profitable and ROCE is healthy, net profit just collapsed 81% YoY in Mar 2025. Stock trades at a spicy 81x PE with OPM of just 7%. At ₹4,395 Cr market cap, investors are left wondering: Is this Bikaji’s cousin or a deep-fried value trap?
✈️ 1. Introduction with Hook
From namkeen pouches to stock market launches — Gopal Snacks had the perfect FMCG fairy tale.
But after listing in March 2024… the crunch faded. Profits evaporated. FIIs ghosted. And the only thing salty now? Retail shareholders.
The company still sells bhujia, gathiya, chips, and more across 12 states. But in the stock market? It’s selling disappointment.
🏭 2. WTF Do They Even Do?
Gopal Snacks Ltd is your classic Indian snacks empire:
- 🟠 Traditional Namkeens – Gathiya, Bhujia, Mixture
- 🟡 Western Snacks – Wafers, Extruded Snacks
- 🟢 Sweets, Spices & Flours
- 🏭 Has 6 manufacturing units across Gujarat and Rajasthan
- 🛒 600+ distributors, 300k+ retail outlets
Positioning: Mass-market FMCG at the heart of Bharat.
💰 3. Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY25 |
|---|---|
| Revenue | ₹1,468 Cr |
| Net Profit | ₹19 Cr (↓81% YoY) |
| OPM | 7% (down from 12% in FY24) |
| ROE | 13.7% |
| ROCE | 16.7% |
| EPS | ₹1.52 |
| P/E | 80.8x (🥵) |
| Book Value | ₹32.5 |
| P/BV | 10.86x |
| Market Cap | ₹4,395 Cr |
Margins and earnings both collapsed in FY25. But valuation? Still premium like haldiram’s tin box.
📉 4. Valuation – Cheap, Meh, or Crack?
- CMP ₹353
- EPS ₹1.52 → P/E = 81x
- P/BV = 10.9x
- ROE = 13.7%
🧮 Fair Value Range = ₹160 – ₹210
Unless earnings bounce back 4x, this price is all brand premium and no financial logic.
🔥 5. What’s Cooking – News, Triggers, Drama
- Q4FY25 net profit fell 81% YoY (₹7.68 Cr → ₹1.52 Cr)
- FIIs cut stake from 3.2% → 1.57% over last 4 quarters
- Concall buzz: Blamed raw material inflation, channel realignment
- Analyst meets galore, but no turnaround yet
- Dividend payout 66% of FY25 profits – mostly optics?
Nothing major has changed… except the sentiment and the stock’s mojo.
🏚️ 6. Balance Sheet – How Much Debt, How Many Dreams?
| FY25 | ₹ Cr |
|---|---|
| Total Assets | ₹537 Cr |
| Reserves | ₹392 Cr |
| Borrowings | ₹67 Cr |
| CWIP | ₹46 Cr |
| Inventory | ₹210 Cr+ |
| Cash from Ops | ₹68 Cr |
Debt is low. Working capital is okay. But capex expansion hasn’t boosted top line yet.
💸 7. Cash Flow – Sab Number Game Hai
| FY25 (₹ Cr) |
|---|
| CFO |
| CFI |
| CFF |
| Net Cash Flow |
Company is funding growth via internal accruals – respectable, but cash burn shows rising costs.
📊 8. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 16.7% 👍 |
| ROE | 13.7% 👍 |
| OPM | 7% 👎 (12% last year) |
| CCC | 52 days |
| Inventory Days | 52 |
| Debtor Days | 6 (tight control) |
Operations are tight, but margins falling = something’s broken in the pricing or supply chain.
💥 9. P&L Breakdown – Show Me the Money
| Year | Revenue | OPM | Net Profit |
|---|---|---|---|
| FY23 | ₹1,394 Cr | 14% | ₹112 Cr |
| FY24 | ₹1,402 Cr | 12% | ₹100 Cr |
| FY25 | ₹1,468 Cr | 7% | ₹19 Cr 🫠 |
Despite revenue rising, profits tanked. If you don’t defend margins in FMCG, you’re toast.
🥊 10. Peer Comparison – Who Else in the Game?
| Company | Sales | OPM | ROE | P/E | P/BV |
|---|---|---|---|---|---|
| Nestle | ₹20,202 Cr | 23.6% | 83% | 74x | 55.9x |
| Britannia | ₹17,942 Cr | 17.7% | 52.9% | 63x | 32x |
| Bikaji | ₹2,622 Cr | 12.5% | 15% | 95x | 13.3x |
| Mrs Bectors | ₹1,742 Cr | 12.7% | 14.2% | 68x | 7.6x |
| Gopal Snacks | ₹1,468 Cr | 7% | 13.7% | 81x | 10.9x |
Verdict? Same valuation as bigger players, worse profitability than smaller peers. That’s the dahi puri without chutney combo.
🧾 11. Miscellaneous – Shareholding, Promoters
| Shareholder | Mar 2025 |
|---|---|
| Promoters | 81.47% |
| FIIs | 1.57% |
| DIIs | 7.01% |
| Public | 9.95% |
Promoters holding strong. FIIs exiting. Public is climbing up slowly — which usually means someone else is exiting.
📢 12. EduInvesting Verdict™
Gopal Snacks got its IPO hype. But the real masala — profit growth — is missing.
- Margins collapsed from 14% to 7% in 2 years
- Net profit down 81%
- Stock still trades at 81x earnings
Unless margins bounce back big-time, this is a ₹350 packet of air — all branding, no bhujia.
❌ EduScore: 39/100
Crunchy on packaging. Hollow on substance. A real “Namkeen Nahin, Nuksaan Hai” case.
✍️ Written by Prashant | 📅 July 4, 2025
🏷️ Tags:
Gopal Snacks, namkeen IPO, packaged food stocks India, Rajkot FMCG, Gathiya brand stock, high P/E stock 2025, Q4 result shocker, falling margins FMCG, NSE FMCG analysis, EduInvesting stock deep-dive
