Multibagger Penny Stock Below Rs 10 with 1,500 Per Cent Returns: Company approved increase in authorised capital from Rs 120,00,00,000 to Rs 160,00,00,000
The stock is up by 28.2 per cent from its 52-week low of Rs 5.26 per share and has given multibagger returns of over 1,500 per cent in 5 years.
On Wednesday, shares of Sarveshwar Foods Ltd gained 0.6 per cent to an intraday high of Rs 7.22 per share from its previous closing of Rs 7.18 per share. The stock’s 52-week high is Rs 12.28 per share and its 52-week low is Rs 5.63 per share. The stock is trading above the 50-day moving average or 50-DMA.
Sarveshwar Foods Limited held a board meeting on May 20, 2025, where key decisions were made regarding the company's capital structure. The board approved an increase in the Authorised Capital from Rs 1,20,00,00,000 (Rupees one hundred and twenty crores) to Rs 1,60,00,00,000 (Rupees one hundred and sixty crores), which will consist of 1,60,00,00,000 (one hundred and sixty crores) equity shares of Re 1 (Rupee one) each. This change, along with the necessary alteration to Clause V of the Memorandum of Association, is now subject to the approval of the company's members. The board also approved the postal ballot notice to facilitate member approval for these significant changes. These actions aim to strengthen the company's financial foundation and align its capital structure with future growth initiatives.
Earlier, Sarveshwar Foods Ltd received a credit rating upgrade from Infomerics, with their long-term bank facility improving to IVR BBB+/Stable and their short-term facility to IVR A2, impacting a total of Rs 137.81 crore. This positive news aligns with the company's focus on sustainable farming (soil mapping, 'NIMBARK' organic brand) and significant global expansion (US export order, Natural Global Foods DMCC acquisition, Green Point Private Limited order), all contributing to their Rs 2,000 million business target.
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About the Company
Sarveshwar Foods Limited (SFL) is a 130-year-old company certified by ISO 22000:2018, USFDA, BRC, and other global standards. They specialise in manufacturing, trading, and marketing branded and unbranded rice, both domestically and internationally. Based in Jammu and Kashmir, SFL leverages the fertile Himalayan foothills to cultivate a wide range of organic products under the "NIMBARK" brand, promoting a conscious and healthy lifestyle.
For nine-month results (9MFY25), the company experienced significant growth compared to the same period in the previous year (9MFY24). Revenue surged by 26.4 per cent, reaching Rs 786.51 crore, while profit after tax (PAT) increased by 43.6 per cent, amounting to Rs 18.33 crore. This positive trend continued into the third quarter of FY25 (Q3FY25), with revenue climbing 18.7 per cent to Rs 282.15 crore and PAT soaring 44 per cent to Rs 7.08 crore compared to the corresponding quarter of the previous year (Q3FY24).
The company has a market cap of over Rs 700 crore with a 3-year stock price CAGR of 75 per cent. The stock is up by 28.2 per cent from its 52-week low of Rs 5.26 per share and has given multibagger returns of over 1,500 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.