Rice Company’s Multibagger Penny Stock Under Rs 10 Per Share Locked In An Upper Circuit With Volume Spurt On September 30

The stock gave multibagger returns of 142.4 per cent from its 52-week low of Rs 4.03 per share and a whopping 1,220 per cent in 3 years.

Today, shares of Sarveshwar Foods Ltd hit a 10 per cent upper circuit to an intraday high of Rs 9.77 per share from its previous closing of Rs 9.31 per share. The stock’s 52-week high is Rs 15.73 and its 52-week low is Rs 4.03. The shares of the company saw a spurt in volume by more than 1.01 times on BSE.   

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).

Sarveshwar Food Limited has expanded its product line to include a variety of rice-based offerings. These new products, including Turmeric Rice, Spice Mix Rice, Khichadi Rice, Vegetable Rice, and Black Rice, are designed to cater to the growing demand for healthier, convenient, and flavourful food options. Developed through rigorous market research and a commitment to quality, these products combine high-quality ingredients with traditional and functional elements. Sarveshwar Food anticipates that this new product range will solidify their leadership in innovative food solutions and generate significant revenue and improved profit margins. The products will be launched under the 'NIMBARK' brand and made available both domestically and internationally.

The company has a market cap of over Rs 950 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 142.4 per cent from its 52-week low of Rs 4.03 per share and a whopping 1,220 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.