During Thursday’s morning trading session, the shares of a leading FMCG company in India known for its high-quality snack products hit a 10 percent lower circuit at Rs. 406.75 on BSE, after reporting a fire accident at one of its production units situated in Rajkot, Gujarat, India.
With a market cap of Rs. 5,156 crores, at 01:55 p.m., the shares of Gopal Snacks Limited were trading in the red at Rs. 413.8, down by around 8.4 percent, as against its previous closing price of Rs. 451.9.
What’s the news:
According to the latest regulatory filings with the stock exchanges, Gopal Snacks reported a fire incident on 11th December at one of its production units situated in Rajkot, Gujarat. While the cause of the fire remains unknown at this time, the company has informed that there have been no casualties/injuries to personnel have occurred due to this unfortunate event.
Additionally, the company clarified that it holds adequate insurance coverage and has already informed the insurance company about the incident. The company is in the process of ascertaining the actual loss caused due to the fire.
In response to the situation, the company has taken several measures to ensure business continuity. Firstly, production activities have been scaled up at the Modasa and Nagpur facilities to compensate for the current closure of the Rajkot I facility. Additionally, to address additional local capacity needs, Gopal Snacks is engaging with third-party manufacturers.
Further, the company’s assets are fully insured, and the insurance provider has been notified of the incident. Finally, all critical business systems, including the SAP infrastructure, remain operational and secure, ensuring seamless business continuity with no data loss or IT disruptions.
The company is actively working to restore operations at the Rajkot I facility at the earliest, and management is confident that this incident will not have a significant long-term impact on the company’s operations or financial performance.
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Financials:
Gopal Snacks reported a significant growth in revenue from operations, experiencing a year-on-year rise of nearly 12.6 percent, from Rs. 358 crores in Q2 FY24 to Rs. 403 crores in Q2 FY25.
Similarly, its net profit increased during the same period from Rs. 257 crores to Rs. 29 crores, representing a marginal growth of nearly 7.4 percent YoY.
Stock Performance:
The shares of Gopal Snacks have delivered positive returns of nearly 14.8 percent year-to-date, as well as around 28 percent returns in the last six months.
About the company:
Founded in 2009, Gopal Snacks Limited is engaged in the business of manufacturing various types of ready-to-eat namkeens, snack pallets, corn products, potato chips, papad, besan, spices, etc.
Gopal Snacks is the largest manufacturer of Gathiya & Snack Pellets in India & largest manufacturer of Ethnic Namkeen in Gujarat. It has a total of six manufacturing facilities which includes three ancillary units in India.
Written by Shivani Singh
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