Gopal Namkeen IPO Review (as of March 7, 2024)
Company Profile:
Gopal Namkeen is a prominent Indian FMCG company specializing in packaged namkeen and other ready-to-eat snacks. It is the fourth-largest player in the packaged ethnic namkeen segment in India.
Company Fundamental Analysis:
IPO Open Date: 6 March
IPO Close Date: 11 March
Allotment Date: 12 March
Listing Date: 14 March
Lot Size: 37 Shares
Price Band: ₹381 - ₹401 per share
Face Value: ₹10 per share
Parameters:
Revenue Growth: 11% CAGR (FY21-23)
Profitability: PAT growth of 131% CAGR (FY21-23)
EPS: Not yet available for FY24
Debt-Equity Ratio: Low and comfortable
Gross Profit Margin: Healthy margins above industry average
Objective of Issue:
The company aims to utilize the IPO proceeds for:
Funding expansion plans
Repayment/reduction of debt
General corporate purposes
Promoter:
The company is promoted by the Goenka family.
Allotment Structure:
50% of the issue is reserved for Qualified Institutional Buyers (QIBs)
35% for Retail Individual Investors (RIIs)
15% for Non-Institutional Investors (NIIs)
Peer Group Comparison:
Gopal Namkeen compares favorably to its peers in terms of:
Profitability: Higher profit margins
Growth: Faster revenue and profit growth
Company Sales, Revenue, and Growth (Last 3 Years):
The company has reported consistent growth in sales, revenue, and profitability over the past three years.
Risks and Challenges:
Intense competition in the FMCG sector
Dependence on raw material prices
Fluctuations in consumer demand
IPO Apply or Not?
The decision to invest in the IPO depends on your individual risk tolerance and investment goals. Analysts have mixed opinions, with some recommending it for medium to long-term investors while others suggest it is fairly priced based on FY24 earnings.
