Prataap Snacks cruises 15% after 13 lakh shares change hands in block deal

Shares of Prataap Snacks Limited zoomed 15 percent to Rs 938 on November 20 morning after 13 lakh shares changed hands in a pre-market trade.

As many as 17 lakh shares changed hands on the bourses, significantly higher than the one-month average of 20,000 shares. Moneycontrol couldn’t ascertain buyers and sellers of the block deal immediately.

In the last six months, the maker of the famous Diamond crisps has given a return of almost 23 percent.

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In September, the goods and service tax (GST) department searched the company’s manufacturing unit in Bengaluru. The company mentioned that it had extended its full cooperation to the officials and responded to the clarification and details sought by them. It said in the filing that the operations of the aforesaid manufacturing unit were not impacted and continued as usual.

In its FY23 annual report, the company stated that its margins declined because of rising raw material costs such as potatoes, corn, wheat and packaging laminate.

The company operates in three verticals: extruded snacks, potato chips, and namkeen, along with sweet snacks. In the fiscal year 2023, the extruded snacks segment, featuring brands such as Yellow Diamond and Avadh, accounted for 58 percent of the total revenue. Potato chips contributed 23 percent to the overall revenue, while namkeen and sweet snacks contributed 16 percent and 3 percent, respectively.

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