2:1 bonus share & 10:1 stock split: Multibagger penny stock in green as the company acquired 100 per cent stake in Green Point Pvt Ltd worth USD 40,000

The stock gave multibagger returns of 287 per cent in just 1 year and of a whopping 750 per cent in 5 years.

Sarveshwar Foods Ltd, a food processing company focusing on rice products, has completed the acquisition of Green Point Pvt Ltd, a Singapore-based company dealing in groceries, agricultural raw materials, and timber. This strategic acquisition gives Sarveshwar Foods a foothold in the international market, potentially attracting new investors and partners to aid its growth. Green Point Pvt Ltd boasts a revenue of USD 3.14 million for the fiscal year 2022-23 and has been operational for at least three years, with a history of fluctuating turnover. The acquisition was finalised with a cash payment of USD 40,000, granting Sarveshwar Foods complete ownership (100 per cent ordinary shares) of Green Point Pvt Ltd.

Sarveshwar Foods Limited (SFL), a leading food company from Jammu & Kashmir with over 130 years of experience, is the first private sector company in the state to be listed on both NSE (symbol: SARVESHWAR) and BSE (code: 543688). SFL offers a wide range of branded and unbranded basmati and non-basmati rice, along with organic products under the "NIMBARK" brand, all produced using sustainable practices and adhering to strict quality certifications like ISO, USFDA, and BRC.

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The company has a market cap of Rs 985 crore with a 3-year CAGR of 115 per cent. According to Quarterly Results, the net sales increased by 24.7 per cent to Rs 229.38 crore and net profit increased by 186.6 per cent to Rs 4.93s crore in Q3FY24 compared to Q3FY23. In its annual results, the net sales increased by 14 per cent to Rs 689 crore and net profit increased by 166.7 per cent to Rs 8 crore in FY23 compared to FY22.

The company's shares have ex-traded bonus shares and stock split in the financial year 2023 – 2024, i.e., 2:1 bonus shares and stock split from a face value of Rs 10 to Rs 1. The stock gave multibagger returns of 287 per cent in just 1 year and of a whopping 750 per cent in 5 years. Today, shares of Sarveshwar Foods Ltd gained 3.90 per cent to Rs 10.15 per share from its previous closing of Rs 9.77 per share.

Disclaimer: The article is for informational purposes only and not investment advice.