Shares of this small-cap stock fell around 4 percent in Wednesday’s trading session after GST officials visited the manufacturing plant of the company based in Bengaluru. Keeping the short-term negative stock movements aside, the company’s stock has gained nearly 25 percent in the last six months. 

With a market capitalization of Rs 2,100 crores, the stocks of Prataap Snacks Limited opened their trading hour on Wednesday at Rs 870 and currently trade at Rs 848, slipping around 4 percent as compared to the previous close of Rs 875.60 apiece. 

Such bearish movements in the stock price were observed after the company released a regulatory filing with the Bombay Stock Exchange (BSE) dated 26th September 2023. 

The company intimated that the GST officials, on 25th September 2023, conducted a search and seizure under the Central Goods and Services Tax Act, 2017 in one of the manufacturing units located in Bengaluru, Karnataka. 

During the recent quarters, the company reduced its operating revenues from Rs 426.45 crores during Q3FY22-23 to Rs 386.62 crores during Q4FY22-23. Despite the same, the company, showcasing effective cost management, has increased its after-tax profits from Rs 5.82 crores to Rs 21.61 crores keeping the timeframe the same. 

Additionally, the company has shown positive movements in its profitability metrics with the return on equity (RoE) increasing from 0.47 percent during FY21-22 to 3.23 percent during FY22-23, and, the return on capital employed (RoCE) moving up from 0.67 percent to 1.21 percent during the same period. 

As per the shareholding data available for the quarter ended June 2023, the company’s Promoters hold a 69.97 percent stake, and the Foreign Institutional Investors (FIIs) hold a 3.37 percent stake in the company. 

Prataap Snacks Limited is a company associated with the ‘consumer food’ industry with various product offerings in its sole segment of snacks including products such as puffs, chips, among others. 

Written by Amit Madnani