FMCG stock engaged in the business of manufacturing, trading, processing, and marketing of branded and un-branded basmati and other products jumped upto 8 percent in the day’s trade upon receiving work order worth Rs. 44.5 Crores.
Price Action
With a market capitalization of Rs. 934 Crores, the shares of Sarveshwar Foods Limited were trading at Rs. 9.56 per equity share, up 6 percent from its previous day’s close price of Rs. 9.03.
What Happened
Sarveshwar Foods Limited’s wholly owned subsidiary Green Point Pte. Ltd. has secured a new work order from Monarda Commodities Pte. Ltd. to supply 12,000 MT of Indian Long Grain Parboiled Rice for a consideration of Rs. 44.5 Crores and it is to be executed by December 31, 2024.
This order is part of the subsidiary’s strategic drive to achieve over Rs. 200 Crores of business during the current fiscal year.
Management Comment
Mr. Rohit Gupta, Chairman, of Sarveshwar Group, said “We are excited about this significant order and the promising outlook for Green Point’s contribution to our global business. With our focus on high-quality rice-based products and the growing preference for gluten-free diets, we are confident in achieving our Rs. 2000 Million targets this year for this Singapore Subsidiary.
And overall turnover of Rs. 1000 Crores business for the Sarveshwar Foods Limited, taken its subsidiaries business together, for FY 2024-25, and that too with good margins”
About the Company
Sarveshwar Foods Limited is engaged in the business of manufacturing, trading, processing, and marketing of branded and un-branded basmati, non-basmati rice, and other products in the domestic and international markets.
Financials and Ratios
Its revenue from operations grew by 32.20 percent from Rs. 205.22 Crores in Q2FY24 to Rs. 271.31 Crores in Q2FY25, accompanied by profits of Rs. 4.83 Crores to Rs. 8.14 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 7.95 percent, and a return on capital employed (ROCE) of 11.8 percent. It has reported a debt-to-equity ratio of 1.05.
Written by: Bharath K.S
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