Multibagger penny stock at Rs 10.64 hit upper circuit as company initiates strategic partnerships with NBFCs to extend financial support to its associated farmers!
The stock gave multibagger returns of 164 per cent from its 52-week low of Rs 4.03 per share.
Today, shares of Sarveshwar Foods Ltd hit a 10 per cent upper circuit to an intraday high of Rs 10.64 per share from its previous closing of Rs 9.68 per share with a spurt in volume by more than 5 times on BSE. The stock’s 52-week high is Rs 15.73 and its 52-week low is Rs 4.03.
Sarveshwar Food Limited, an emerging player in the agri-food sector based in Jammu, announced that it has initiated strategic partnerships with certain Non-Banking Financial Companies (NBFCs) to enhance financial support for farmers—who are the backbone of the company’s supply chain—and drive improvements within the agricultural sector.
Drawing on a rich history of commitment to quality and community, Sarveshwar Food Limited recognizes the vital role that farmers play in its operations. These new collaborations are aimed at providing essential financial resources, enabling farmers to invest in modern agricultural practices and infrastructure. Through these partnerships, Sarveshwar Food Limited seeks to fortify the agricultural ecosystem and ensure the stability and growth of its supply chain.
Key Aspects of the Initiated Partnerships:
- Enhanced Financial Support: The partnerships will offer farmers improved access to funding, including working capital and investments for agricultural infrastructure.
- Infrastructure Development: Financial resources will be directed towards enhancing infrastructure, such as irrigation systems and storage facilities, to boost productivity and reduce post-harvest losses.
- Technical Assistance: Farmers will benefit from additional guidance on financial management and technical support to optimize their agricultural practices.
- Sustainable Growth: The initiative aims to drive sustainable agricultural practices and ensure long-term stability and growth within the sector.
Under the proposed arrangement, Sarveshwar Food Limited will serve as a bridge between NBFCs and farmers, facilitating direct financing partnerships. These partnerships will be crucial to strengthening its supply chain and ensuring uninterrupted food supplies. The company believe that the growth including farmers, partners and the broader community, is essential to its mission. Sarveshwar Food Limited is dedicated to advancing the agricultural sector and enhancing the livelihoods of farmers.
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About the Company
For over 130 years, Sarveshwar Foods Limited (SFL) in Jammu & Kashmir has been a leading name in rice cultivation, processing, and trade. They handle both Basmati and non-Basmati varieties for domestic and international markets. Himalayan snowmelt nourishes their crops alongside organic manure, reflecting their commitment to sustainable practices. This dedication to eco-friendly methods extends to their ‘NIMBARK’ brand of organic products, which embodies their philosophy of promoting a ‘SATVIK’ lifestyle focused on conscious living. Notably, SFL holds a significant achievement as the first private-sector food company in Jammu & Kashmir to be listed on both the National Stock Exchange (SARVESHWAR) and the Bombay Stock Exchange (543688).
The company has a market cap of over Rs 1,000 crore with a 3-year stock price CAGR of 150 per cent. According to Quarterly Results, revenue surged 24 per cent year-on-year to Rs 233.05 crore in Q1FY25, driven by increased rice supply and expanded customer base through the government's Bharat Rice Scheme. Additionally, a significant export order worth USD 6 million boosted performance. In its annual results, the net sales increased by 26.2 per cent to Rs 869.59 crore and net profit increased by 119.2 per cent to Rs 17.34 crore in FY24 compared to FY23.
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 164 per cent from its 52-week low of Rs 4.03 per share. From Re 0.86 to Rs 10.64 per share (intraday high), the stock gave multibagger returns of 1,137.2 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.