In Thursday’s trading session, shares of one of the leading FMCG stocks specializing in the production of high-quality rice and a variety of other essential food products, were in focus following the sale of a 3.48 percent stake by promoter Rohit Gupta from September to December.
Price action
With a market capitalization of Rs. 868.21 crores on Thursday, the shares of Sarveshwar Foods Limited rose by 1 percent making a high of Rs. 8.95 per share compared to its previous closing price of Rs. 8.87 per share.
What Happened
Sarveshwar Foods Limited specialises in the production of high-quality rice and a variety of other essential food products.
Sarveshwar Foods Limited’s major promoter, who holds a significant 54.88 percent stake in the company, has sold a partial stake of 3.48 percent, which accounts for ~3.41 crore shares, in the open market from September to December. This move has drawn attention in the market, as the promoter adjusts their holdings in the company. The sale reflects ongoing changes in the company’s ownership structure, although the promoter still retains a majority stake.
About the company
Sarveshwar Foods Ltd. is one of the leading player in the food processing industry in India, specializing in the production and distribution of high-quality rice and other food products. Founded with the aim of providing nutritious and premium food options, the company has established a strong presence in both domestic and international markets.
Sarveshwar Foods is known for its extensive range of rice varieties, including basmati, non-basmati, and specialty rice, catering to the diverse needs of consumers. In addition to rice, the company also produces a variety of other food products, such as pulses, flour, and edible oils, offering a complete portfolio of essential food items.
Recent Updates
Sarveshwar Foods has successfully acquired the remaining stake in Natural Global Foods DMCC, a Dubai-based company. With final valuation, due diligence, and Board approval complete, the company plans to fully integrate Natural Global Foods as a wholly owned subsidiary by December 31, 2024. This acquisition strengthens Sarveshwar Foods’ footprint in the Middle East, enhances synergies, improves operational efficiency, and positions the company for accelerated global growth.
Financials
The company’s revenue grew by 31.5 percent from Rs 207.07 crore to Rs 272.32 crore in Q2FY24-25. Meanwhile, Net profit rose from Rs 4.83 crores to Rs 8.14 crore during the same period.
Key Financial ratios
Sarveshwar Foods Limited has an Return on Equity (RoE) of 7.04 percent and a Return on Capital Employed (RoCE) of 11.61 percent. Furthermore, the company’s debt-to-equity ratio is 1.05.
Written by Sridhar J
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