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Business News/ Markets / Stock Markets/  Gopal Snacks shares tumble 5% to hit a new all-time low on weak Q3 earnings
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Gopal Snacks shares tumble 5% to hit a new all-time low on weak Q3 earnings

Gopal Snacks shares fell 5% to ₹341 after weak Q3 FY24 results, with net profit down 44% to ₹17.9 crore. Revenue remained flat at ₹367.6 crore. For 9MFY24, the company's standalone net profit declined to ₹73.5 crore from ₹85.1 crore in 9MFY23, representing a 14% decrease.

The company's shares experienced a lackluster debut on the bourses on March 14, opening at ₹351 per share compared to the issue price of ₹401 per share. (https://www.gopalnamkeen.com/)Premium
The company's shares experienced a lackluster debut on the bourses on March 14, opening at 351 per share compared to the issue price of 401 per share. (https://www.gopalnamkeen.com/)

Gopal Snacks, an FMCG company dealing in ethnic snacks, saw its shares tumble nearly 5% to hit a new all-time low of 341 apiece after the company posted a weak set of numbers for the December ending quarter (Q3 FY24). This was the company's first earnings report since its listing in March.

During Q3 FY24, the company reported a standalone net profit of 17.9 crore, marking a significant 44% decrease compared to the net profit of 33.1 crore recorded in the same period last year. Additionally, revenue from operations remained relatively stagnant at 367.6 crore in Q3 FY24, showing minimal growth compared to the 363.3 crore revenue reported in the corresponding period of the previous year.

Also Read: Gopal Snacks share price jumps 12.5% from intraday low. Buy, sell or hold?

Furthermore, in the first nine months of FY24, the company's standalone net profit declined to 73.5 crore from 85.1 crore in 9MFY23, representing a 14% decrease. Similarly, revenue from operations for the first nine months of FY24 totaled 1,043.8 crore, reflecting a 1.8% decline compared to the 1,062.6 crore revenue recorded in 9MFY23.

Founded in 1999, Gopal Snacks is a fast-moving consumer goods company in India, offering Namkeen, western snacks, and other products across India and internationally. The company operates three manufacturing facilities: Rajkot and Modasa in Gujarat, and Nagpur in Maharashtra.

Also Read: Bharti Hexacom IPO opens today: GMP, review, other key details. Apply or not?

The company has made its mark in 10 Indian states and 2 Union Territories, with a strong presence in the western region and a domestic reach of over 4 lakh retailers, its website showed. 

The company's shares experienced a lacklustre debut on the bourses on March 14, opening at 351 per share compared to the issue price of 401 per share. By the end of the first day, the stock had dropped by 9.6% to 362.7 per share. 

Since its listing, the company's shares have consistently faced downward pressure. In the past 11 trading sessions, the shares have closed in the red on seven occasions. The Gopal Snacks IPO consisted entirely of an offer for sale (OFS) of equity shares by promoters and other selling shareholders.

Also Read: SRM Contractors IPO listing date today. Here's what GMP, experts suggest

Disclaimer: We advise investors to check with certified experts before taking any investment decisions.

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Published: 03 Apr 2024, 10:20 AM IST
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