Gopal Snacks shares update on restoration of biz ops post-fire incident; stock down 7%

Gopal Snacks Ltd shares on Monday continued their losing run for the sixth consecutive session. The stock tanked 6.60 per cent to settle at Rs 386.60. At this closing price, it has declined 16.34 per cent in six trading days.

The company shared an update on the restoration of business operations post-fire incident. "In continuation of our earlier communication dated December 12, 2024, regarding the temporary cessation of operations due to a fire incident at our manufacturing facility located at Plot No. G2322-23-24, GIDC, Metoda, Tal. Lodhika, Rajkot, Gujarat – 360021, we would like to provide an update on the measures undertaken to restore supply levels. While operations at the affected facility remain temporarily halted, we have scaled up production at our other manufacturing facilities and have engaged third-party manufacturers to augment supply capabilities. These efforts have enabled us to restore approximately 50 per cent of the supply levels as of December 16, 2024," it stated in a BSE filing today.

"We are working diligently to further scale up operations, leveraging all available resources to ensure that supply levels are re-instated to the maximum within the next 15 days," it added.

The package foods firm previously informed exchanges that production activities have been scaled up at the Modasa and Nagpur facilities to compensate for the current closure of the Rajkot facility.

Technically, the scrip traded lower than the 5-day, 10-, 20-, 30-, 50-day and 100-day simple moving averages (SMAs) but higher than the 150-day SMA. The stock's 14-day relative strength index (RSI) came at 29.32. A level below 30 is defined as oversold while a value above 70 is considered overbought.

Gopal Snacks saw high trading volume on BSE as around 2.86 lakh shares changed hands today. The figure was higher than the two-week average volume of 44,000 shares. Turnover on the counter came at Rs 11.11 crore, commanding a market capitalisation (m-cap) of Rs 4,817.20 crore.

As per BSE, the stock has a price-to-equity (P/E) ratio of 53.06 against a price-to-book (P/B) value of 11.62. Earnings per share (EPS) stood at 7.80 with a return on equity (RoE) of 21.90. Promoters held an 81.49 per cent stake in the company as of September 2024.