Multibagger Penny Stock Under Rs 10 Jumps After Company Acquires Remaining Stake in Natural Global Foods DMCC for Business Expansion
The stock gave multibagger returns of 119 per cent from its 52-week low of Rs 4.50 per share and a whopping 1,134 per cent in 3 years.
On Friday, shares of Sarveshwar Foods Ltd gained 3.70 per cent to an intraday high of Rs 9.87 per share from its previous closing of Rs 9.52 per share. The stock’s 52-week high is Rs 15.73 and its 52-week low is Rs 4.50.
Sarveshwar Foods Limited has announced its strategic decision to acquire the remaining 55% stake in Natural Global Foods DMCC, a Dubai-based entity, for a cash consideration of 3043.64 AED per share. This move will solidify the Company's control over the Middle Eastern market, enabling streamlined operations and accelerated growth. Natural Global Foods DMCC, a company incorporated in the UAE, is involved in the trading of foodstuff, beverages, grains, cereals, legumes, honey, apiary accessories, and natural herbs. While the company has yet to commence full-scale operations, its strategic location in Dubai positions it favourably for future expansion. The acquisition is expected to be completed by December 31, 2024, and does not require any governmental or regulatory approvals.
Earlier, Sarveshwar Foods' subsidiary, Green Point Pte. Limited, has secured a 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 aligns with Green Point's target of Rs 2,000 million in business this fiscal year. Based in Singapore, Green Point is a gateway to the global rice market, projected to reach USD 361.41 billion by 2031. Rising health concerns like celiac disease and gluten intolerance are driving global demand for rice-based products. Sarveshwar Foods is well-positioned to capitalize on this trend and lead the domestic and international rice export markets.
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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 Rs 946 crore with a 3-year stock price CAGR of 140 per cent. The stock gave multibagger returns of 119 per cent from its 52-week low of Rs 4.50 per share and a whopping 1,134 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.