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Prataap Snacks Shares Fall After GST Search At Manufacturing Unit

The search was conducted at its unit in Bengaluru on Monday under the Central Goods and Services Tax Act.

<div class="paragraphs"><p>Diamond brand snacks manufactured by Prataap Snacks (Photo: Usha Kunji/BQ Prime)</p></div>
Diamond brand snacks manufactured by Prataap Snacks (Photo: Usha Kunji/BQ Prime)

Shares of Prataap Snacks Ltd. fell over 4% on Wednesday after the GST authority conducted a search and seizure in one of its manufacturing units. 

The search was conducted at its unit in Bengaluru on Monday under the Central Goods and Services Tax Act according to an exchange filing on Tuesday. "The company has extended its full cooperation to the officials and responded to the clarification and details sought by them."

The operations in the unit were not impacted and continued as usual, the packaged-food maker said.

Prataap Snacks Shares Fall After GST Search At Manufacturing Unit

Shares of Prataap Snacks fell 4.07% to an intraday low of Rs 839.95 apiece, their lowest since Aug. 2. It pared losses to trade 3.26% lower at Rs 847.05 per share, compared to a 0.05% decline in the benchmark NSE Nifty 50 as of 11.50 a.m.

The stock has declined 6.85% on a year-to-date basis. The total traded volume so far in the day stood at 6.6 times its 30-day average. The relative strength index was at 35.2. 

Three out of the four analysts tracking Prataap Snacks maintain a 'buy' rating on the stock, and one recommends a 'hold,' according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 31.9%.

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