The shares of the organic product manufacturer hit 10 percent upper circuit after the company announced its strategic partnership with Non-Banking Financial Companies (NBFCs).
With a market capitalization of Rs 1,041.46 crore, the shares of Sarveshwar Foods Ltd were trading at Rs 10.64 per share, increasing around 9 percent as compared to the previous closing price of Rs 9.68 apiece.
Reason for Rise:-
Today, the company has seen a drastic change in its share after Sarveshwar Foods Ltd announced its strategic partnership with Non-Banking Financial Companies (NBFCs) to enhance financial support for farmers.
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Moreover, these alliances aim to provide necessary financial resources, allowing farmers to invest in advanced agricultural methods and infrastructure. Sarveshwar Food Limited’s alliances aim to strengthen the agricultural ecosystem while also ensuring the stability and expansion of its supply chain.
Additionally, the partnerships will provide farmers with better financial access to working capital and agricultural infrastructure investments. Funds will be allocated to develop irrigation systems and storage facilities, aiming to increase productivity and minimize post-harvest losses.
Financial performance & footprint:-
Looking into the company’s financial condition, Sarveshwar Foods Ltd’s revenue jumped by 24 percent from Rs 187.68 crore in Q1FY24 to 233.05 crore in Q1FY25. During the same time frame, net profits zoomed by 2 percent from Rs 2.90 crore to Rs 3.09 crore.
The company works with more than 17,000 farmers covering over 30,000 Acres of certified organic farm area across India with warehousing capacity of 3 lakh sq. ft. with ultra-modern packaging plants on 24 acres of land.
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Ratio analysis:-
The company’s critical ratios show that the return on equity zoomed from 3.64 percent in FY22-23 to 6.63 percent in FY23-24, while the return on capital employed magnified from 14.58 percent to 17.91 percent. The net profit margin (NPM) for fiscal year 23-24 is 1.99 percent.
Company Profile:-
Sarveshwar Foods Limited is an India-based firm that manufactures basmati rice and other items. The company’s products include Indian traditional Basmati rice, 1121 Basmati Rice, and Pusa Basmati Rice, among others.
Written by:- Abhishek Singh
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