Buy Gopal Snacks; target of Rs 500: Emkay Global Financial

Emkay Global Financial' research report on Gopal Snacks

We hosted the management team of Gopal Snacks, represented by Bipin Hadvani (MD and Promoter), Naveen Gupta (Chief Business Officer), and Rigan Raithatha (Chief Financial officer), for its domestic Non-Deal Roadshow (NDR). Modasa commissioning saw a delay, but is set to help the company recoup 90% of the supply chain ahead; also, with the reinstatement of its Rajkot facility by Q1FY27 (crucial for its Saurashtra market supplies), we see 100% recovery in Gopal’s supply chain. We are confident about the execution ahead and expect the company to see a recovery in sales – competition would be key to watch. The management is looking to maintain its margin and focus on growth acceleration ahead – this panning out well will aid operating leverage, which in turn would support margins. We see Gopal getting back on the growth path from Q3FY26, on a low base. The management refrained from giving guidance ahead, but is looking to sustain YoY sales—a consistent trend since its inception.

Outlook

We maintain BUY on Gopal Snacks with Sep-26E TP of Rs500, as we continue to see sales recovery for the company, with trade interventions.