Heavy Buying Alert: Multibagger Penny Stock Under Rs 20, Jumps Over 9 Per Cent With 3 Times Spurt in Volume; Here’s Why
The company's shares saw a spurt in volume by more than 3 times.
On Monday, one of the Top Gainers on BSE, shares of Sarveshwar Foods Ltd jumped 9.62 per cent to an intraday high of Rs 11.28 per share from its previous closing of Rs 10.29 per share. The stock’s 52-week high is Rs 15.73 and its 52-week low is Rs 4.50. The company's shares saw a spurt in volume by more than 3 times.
Sarveshwar Foods Limited, a prominent Indian Basmati rice supplier, has achieved significant milestones. The company has secured a substantial USD 5.84 million or Rs 498 million export order from ISIFOL LLC, a leading US distributor. This partnership reinforces Sarveshwar Foods' reputation for quality and reliability, expanding its global reach and catering to the growing demand for premium Indian food products. The company is also committed to sustainability and authentic flavours, actively exploring opportunities to introduce its Nimbark brand of organic products to international markets. By prioritizing innovation and product development, Sarveshwar Foods aims to maintain its leadership position in the global food market.
In a strategic move, Sarveshwar Foods has acquired the remaining 55% stake in Natural Global Foods DMCC, a Dubai-based entity, for a cash consideration of 3043.64 AED per share. This acquisition solidifies the company's control over the Middle Eastern market, enabling streamlined operations and accelerated growth. Natural Global Foods DMCC, strategically located in Dubai, is poised for future expansion within the food and beverage industry. The acquisition is expected to be completed by December 31, 2024, without requiring any governmental or regulatory approvals.
Furthermore, Sarveshwar Foods' subsidiary, Green Point Pte. Limited, has secured a substantial Rs 445 million order from Monarda Commodities Pte. Ltd. to supply 12,000 MT of premium Indian Long Grain Parboiled rice by December 31, 2024. This achievement aligns with Green Point's target of Rs 2,000 million in business this fiscal year. Based in Singapore, Green Point serves as a gateway to the global rice market, projected to reach USD 361.41 billion by 2031. The increasing global demand for rice-based products, driven by rising health concerns like celiac disease and gluten intolerance, positions Sarveshwar Foods to capitalize on this trend and lead both the domestic and international rice export markets.
DSIJ's ‘Penny Pick’ service provides research-backed penny stock recommendations below Rs. 100. If this interests you, do download the service details here.
About the Company
Sarveshwar Foods Limited (SFL) is a 130-year-old company certified by ISO 22000:2018, USFDA, BRC, and other global standards. They specialize in manufacturing, trading, and marketing branded and unbranded rice, both domestically and internationally. Based in Jammu and Kashmir, SFL leverages the fertile Himalayan foothills to cultivate a wide range of organic products under the "NIMBARK" brand, promoting a conscious and healthy lifestyle.
For the first half of the fiscal year 2025 (H1FY25), the company experienced significant growth compared to the same period in the previous year (H1FY24). Total revenue surged by 28.4 per cent, reaching Rs 504.36 crore, while profit after tax (PAT) increased by 45.2 per cent, amounting to Rs 11.24 crore. This positive trend continued into the second quarter of FY25 (Q2FY25), with total revenue climbing 32.2 per cent to Rs 271.31 crore and PAT soaring 66.3 per cent to Rs 8.15 crore compared to the corresponding quarter of the previous year (Q2FY24).
The company has a market cap of over Rs 1,000 crore with a 3-year stock price CAGR of 135 per cent. The stock gave multibagger returns of over 150 per cent from its 52-week low of Rs 4.50 per share and a whopping 1,370 per cent in 3 years. Investors should keep an eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.