Multibagger penny stock at Rs 11.2 with 2,100 per cent returns: Board likely to raise funds via preferential issue or QIP; hit upper circuit on February 19

The stock gave multibagger returns of 300 per cent in just 1 year and of a whopping 2,100 per cent in 3 years.

Sarveshwar Foods Ltd announced that the meeting of the Board of Directors of the company is scheduled to be held on Wednesday, February 21, 2023, inter-alia, to transact the following businesses:

1) To evaluate, in terms of the company’s long of funds by way of inter-alia securities including convertible preference shares/ fully or partly convertible debentures or by way of a composite issue of non-holder (s) to apply for equity shares, or any other eligible securities through inter alia, a private placement (including one or more qualified institutions placements) or through any other permissible mode under applicable laws and/ or a combination thereof, appropriate, subject to applicable members.

2) To increase the authorized share capital of the company and consequent amendments in the memorandum and articles of association of the company, if any.

3) To seek members’ approval wherever applicable using passing the requisite resolution(s) for the above-said board decisions and other matters connected therewith and/or incidental thereto.

4) In addition to the items listed herein above, the Board may have permission of the chair.

Sarveshwar Foods Limited (SFL) is an ISO 22000:2018 and USFDA (United States Food and Drug Administration) certified company. SFL also has BRC (the biggest global standard for food safety), Kosher, NPPO USA & CHINA along with NOP -USDA Organic certifications for its products. The company is engaged in the business of manufacturing, trading, processing, and marketing of branded and un-branded basmati and non-basmati rice in the domestic and international markets. Our operations are based out of the Jammu Region in the State of Jammu and Kashmir.

SFL has a sustainable and eco-positive legacy of serving healthy and tasty rice for more than 130 years and in the last couple of decades proliferated its heritage to other premium categories of FMCG and Organic products. SFL belongs to the lands in the foothills of the Himalayas which are nourished by fertile mineral-rich soil, organic manure and snow-melted waters of river Chenab, wherein without using any artificial fertilizers and chemicals, they produce a full range of ‘ORGANIC’ products, being sold with brand name ‘NIMBARK’- conceptualised to spread the philosophy of the ‘SATVIK’ conscious lifestyle.

India's "Bharat" brand, offering subsidized staples like pulses, atta, and now rice at Rs 29/kg, has chosen Sarveshwar Foods for distribution in Jammu & Kashmir. This partnership not only ensures wider access to affordable food but also bolsters the "Bharat" brand's mission, leveraging Sarveshwar's 130-year experience to tackle food inflation and empower citizens. By expanding to multiple channels like NAFED, NCCF, and e-commerce, the initiative holds immense potential to improve food security and empower Indian citizens.

Today, shares of Sarveshwar Foods Ltd (SFL) hit a 5 per cent upper circuit to Rs 11.2 per share from its previous closing of Rs 10.70. The stock also made a fresh new 52-week high of Rs 11.20 per share.s

The company has a market cap of over Rs 1,000 crore with a 3-year CAGR of 150 per cent. According to Quarterly Results, the net sales increased by 24.7 per cent to Rs 229.38 crore and net profit increased by 186.6 per cent to Rs 4.93s crore in Q3FY24 compared to Q3FY23. In its annual results, the net sales increased by 14 per cent to Rs 689 crore and net profit increased by 166.7 per cent to Rs 8 crore in FY23 compared to FY22. The stock gave multibagger returns of 300 per cent in just 1 year and of a whopping 2,100 per cent in 3 years.

Disclaimer: The article is for informational purposes only and not investment advice. 

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