Heavy Buying: Multibagger penny stock below Rs 10 hit upper circuit & 52-week high after Agriculture Sector Budget 2024 and business expansion updates!

The stock gave multibagger returns of 222 per cent in just 1 year and of a whopping 1,700 per cent in 3 years.

Today, one of the Top Gainers on BSE, shares of Sarveshwar Foods Ltd (SFL) hit a 10 per cent upper circuit to Rs 8.14 per share from its previous closing of Rs 7.40. The stock also made a fresh new 52-week high of Rs 8.14 with a spurt in volume by more than 1.77 times on BSE.

Finance Minister Nirmala Sitharaman in Budget 2024 for Agriculture and Food Processing said, “The efforts for value addition in the agricultural sector and boosting farmers’ income will be stepped up. Pradhan Mantri Kisan Sampada Yojana has benefitted 38 lakh farmers and generated 10 lakh employment. Pradhan Mantri Formalisation of Micro Food Processing Enterprises Yojana has assisted 2.4 lakh SHGs and sixty thousand individuals with credit linkages. Other schemes are complementing the efforts for reducing postharvest losses and improving productivity and incomes.

To ensure faster growth of the sector, our Government will further promote private and public investment in post-harvest activities including aggregation, modern storage, efficient supply chains, primary and secondary processing and marketing and branding. After the successful adoption of Nano Urea, the application of Nano DAP on various crops will be expanded in all agro-climatic zones. Atmanirbhar Oil Seeds Abhiyan: Building on the initiative announced in 2022, a strategy will be formulated to achieve ‘Atmanirbhar’ for oil seeds such as mustard, groundnut, sesame, soybean, and sunflower. This will cover research for high-yielding varieties, widespread adoption of modern farming techniques, market linkages, procurement, value addition, and crop insurance”.

SFL, a 130-year-old ISO & USFDA certified rice specialist from the Himalayan foothills, crafts healthy, tasty rice (branded & unbranded, Basmati & non-Basmati) for domestic & international markets. They also sell premium FMCG & Organic products under "NIMBARK," promoting a "SATVIK" lifestyle. They use sustainable practices, organic manures, and Himalayan snow melt to nourish their soil and products, reaching customers through traditional channels, their retail outlets and online platforms.

The Agriculture Sector Budget 2024 aims to bolster future business, and Sarveshwar Foods, expanding in Jammu & Kashmir, opened two new SFL Chaupals (procurement centres) in Kulgam and Doda, reaching 12 total. These farmer-managed hubs across the region directly buy walnuts, apples, rajma, and other Himalayan specialities, while empowering farmers with information and support throughout the cycle, creating a win-win partnership. Building on previous centres in Baramulla and Pulwama, Sarveshwar Foods' network provides real-time market data, agricultural expertise, and best practices, helping farmers overcome challenges and achieve higher productivity, income, and risk management, ultimately ensuring a consistent supply of high-quality produce for the company.

The company has a market cap of Rs 790 crore with a 3-year CAGR of 150 per cent. According to Quarterly Results, the net sales increased by 15.2 per cent to Rs 205.22 crore and net profit increased by 220 per cent to Rs 4.83 crore in Q2FY24 compared to Q2FY23. 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 stock gave multibagger returns of 222 per cent in just 1 year and of a whopping 1,700 per cent in 3 years. Investors should keep an eye on this micro-cap stock.

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