Stock to Buy: Shares of Gopal Snacks have gone through a lot of ups and downs in the last one year. But, brokerage firm Emkay Research believes that now the company is poised to give strong returns. Emkay has maintained BUY rating on Gopal Snacks in the report. It has given a target price of ₹500 for the next 12-18 months. This shows an upside of about 50% from current levels
Temporary weakness in stocks?
According to Emkay Research report, Gopal Snacks shares have fallen about 24% in the last 12 months. Its performance has been even weaker compared to Nifty. It closed at ₹333 on Friday with a gain of 1.05%. Its 52-week high is ₹485, while the low is ₹255.
The brokerage believes that this weakness in the stock of Gopal Snacks is temporary. Because the problems in the company’s supply chain will be resolved to a great extent in the coming months. With the commissioning of the Modasa plant, 90% of the supply chain is expected to become normal by December 2025. Rajkot plant to restart in Q1FY27, bringing entire operations back on track
Expectation of improvement in revenue growth
Gopal Snacks faced pressure in FY25, but the picture looks better for FY26 and beyond. Emkay expects the company’s revenue growth to reach 8.3% in FY26, and 18.7% in FY27. EBITDA margin is also likely to increase to 11.4% in FY27. It shows improvement in the operating performance of the company
Sales may increase with new products
Gopal Snacks Company will start its new national TVC campaign i.e. advertisements on TV across the country from December 2025. This will affect both the presence and sales of the brand. Also, Gopal Snacks has intensified initiatives like expanding dealer network, geo-tagging and sales-force automation. All these together will help in improving revenue.
Gopal Snacks September quarter results
Gopal Snacks’ consolidated net profit for the September quarter (FY26) stood at ₹25.6 crore. This is 11.1% lower than ₹28.8 crore in the same quarter last year. According to the company, the major reason for the decline in profits was the fire in the Rajkot I manufacturing unit. Due to this, production and supply chain was affected in this quarter.
Gopal Snacks’ revenue declined 6.7% year-on-year to ₹375.6 crore. EBITDA also declined sharply by 48.3% to ₹24.2 crore as against ₹46.8 crore a year ago. The company’s operating margin declined to 6.4%, from 11.6% last year. The pressure on margins was attributed to lower capacity utilization, higher import duty on palm oil and rising operational costs.
Gopal Snacks confident of long term growth
Despite these challenges, Gopal Snacks had said after its quarterly results that it remains focused on long-term growth and operational recovery. The company said that trial production has started in its new Modasa Namkeen factory, which will become an important supply hub for many big product lines in the future.
During the quarter the company also received an interim insurance payout of ₹20 crore for the fire loss at its Rajkot unit. As of September 2025, Gopal Snacks had 858 active distributors, up from 828 last year. This growth reflects the company’s ongoing expansion strategy into key and new markets.
What is the business of Gopal Snacks?
Gopal Snacks is an FMCG company started from Gujarat. Its main business is manufacturing and selling Namkeen, Farsan, Papdi, Gathiya, Bhujia, Chips, Sev, Khilkhele and snack-based products. The company’s biggest market is West India, especially Gujarat and Saurashtra, where it has a strong brand presence.
Gopal manufactures its products in its own factories. It supplies across the country through a network of thousands of retail outlets and more than 850 distributors. The company has also invested aggressively in packaging, branding and advertising in recent years to compete with larger FMCG players and expand its national presence.
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