Emkay Global, a domestic brokerage house, sees as much as 51.5% upside in Gopal Snacks with a target price of Rs 500. The brokerage has maintained its ‘Buy’ rating on the stock after talking to the management of the company. The brokerage is confident about the execution ahead and expects the company to see a recovery in sales.
Emkay Global on Gopal Snacks: Strong supply chain management
The company’s Modasa commissioning saw a delay (expected to be completed by the end of November 2025), but it is set to help the company recoup 90% of the supply chain ahead. Modasa commissioning ahead of the festive season would have accelerated sales during
Festive, but its delay has led to the management turning cautious on giving sales guidance. Further helped by the reinstatement of the Rajkot facility by Q1 FY27 (crucial for its Saurashtra market supplies), the brokerage sees 100% recovery in Gopal’s supply chain. With improved supplies, the company would enhance thrust in organised channels.
Emkay Global on Gopal Snacks: Focus on lifting margins and sales
Going ahead, the management expects sales recovery with stable margins. Any raw-material price benefit would help margins and operating leverage, too, would boost margins. The management sees trade actions in place for driving sales. New product launches have been accretive and are likely to see a push, with sales recovery. Gopal is looking to expand its product offerings, with additions in the bakery segment.
However, in the organised channel, the company lagged in the QCom fill-rate. Although the company reported 3x sales improvement year-to-date compared to FY25. The management is looking to maintain its margin and focus on growth acceleration ahead. Now, if this pans out well, it will aid operating leverage, which in turn would support margins.
Emkay Global on Gopal Snacks: Comeback in Q3
All in all, the brokerage expects Gopal Snacks to get back on the growth path from Q3 FY26, on a low base. Emkay Global continues to see sales recovery for the company, with trade interventions. The company’s management refrained from giving guidance ahead, but is looking to sustain YoY sales, a consistent trend since its inception.
