By the third day of Gopal Snacks Limited’s IPO, subscription rates varied across investor categories, showcasing diverse interest levels. Qualified Institutional Buyers (QIBs) led the charge with a notable 17.50 times oversubscription. Non-Institutional Investors followed at 9.50 times, while Retail Individual Investors (RIIs) showed moderate engagement at 4.01 times. Employees also participated actively, subscribing 6.88 times, bringing the total subscription to 9.02 times.
Gopal Snacks Limited – Fundamental Analysis
Gopal Snacks Ltd’s IPO analysis reveals consistent revenue growth, doubling equity, and significant profit rises, indicating a strong contender in the food and beverage sector. Noteworthy figures include a revenue surge from ₹11,288.61 million to ₹13,946.53 million from FY2021 to FY2023, alongside a remarkable profit increase to ₹1,123.69 million in FY2023. The RoNW peaked at 38.63%, reflecting operational efficiency, while reduced liabilities improved financial stability. Despite a lower inventory turnover ratio, the company showcases improved liquidity and reduced leverage, promising a robust investment opportunity.
Gopal Snacks Limited – Risks And Challenges
Gopal Snacks Limited’s IPO confronts risks primarily stemming from its heavy reliance on sales from gathiya and namkeen, constituting 59% of its revenue, posing vulnerability to shifts in consumer preferences. Challenges include potential contamination risks due to storage issues and labeling errors, alongside pending notices from regulatory departments, which could adversely affect the company’s financial and operational standing upon unfavourable judgments.
