Multibagger penny stock below Rs 10: Company reports revenue of Rs 233.05 crore & PAT of Rs 3.09 crore in Q1FY25 and approved raising of Rs 250 crore!

The stock gave multibagger returns of 125 per cent in just 1 year.

Today, shares of Sarveshwar Foods Ltd gained 2.8 per cent to an intraday high of Rs 9.25 per share from its previous closing of Rs 9 per share. The stock’s 52-week high is Rs 15.73 and its 52-week low is Rs 3.86. 

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 800 crore with a 3-year CAGR of 114 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. EBITDA climbed 20 per cent to Rs 13.31 crore, and net profit grew 6 per cent to Rs 3.09 crore compared to the same period last year. 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 Board approval of raising funds of additional amount of up to Rs 250 crore by issuance and allotment of equity shares, by way of QIPs, ADR, GDR, FCCB or any other method or combination thereof including the Right Issue(s), subject to all regulatory and members approval, on such terms (to be decided by the Board or a duly constituted committee of the Board at a later date) as are under the Companies Act, 2013 and the rules made thereunder and the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and other applicable regulations, guidelines etc. as amended up to date.

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 125 per cent in just 1 year. From Re 0.60 to Rs 9.25 per share (intraday high), the stock gave multibagger returns of 1,441.7 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. 

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