Board Of Sarveshwar Foods Likely To Raise Funds Via Preferential Issue

Sarveshwar Foods Limited has announced that its Board of Directors will convene on August 13, 2024, to review and approve the unaudited financial results for the quarter ending June 30, 2024. This meeting will also serve as a platform for the board to consider proposals for raising capital through various financial instruments, including equity shares, convertible securities, and debt securities. The company intends to seek the necessary approvals from both shareholders and regulatory authorities to move forward with these fundraising initiatives.

Sarveshwar Foods Ltd. experienced a slight decline in its stock price today, with shares dropping by 0.80% to Rs 8.83 per share, down from the previous close of Rs 8.90. The stock saw an intraday high of Rs 9.20 and a low of Rs 8.80. Over the past year, the stock has fluctuated between a 52-week high of Rs 15.73 and a 52-week low of Rs 3.64. Despite this recent dip, the company maintains a robust market capitalization of over Rs 800 crore, boasting an impressive three-year compound annual growth rate (CAGR) of 114%.

In a significant development, Sarveshwar Foods recently secured a Rs 50 crore contract to export white rice to Africa. The order, which involves the supply of 90,000 quintals of premium rice, was awarded by the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED), a key government agency responsible for marketing agricultural produce in India. This contract marks a major achievement for the company, reinforcing its position in the global market.

The company's financial performance for the fourth quarter of FY24 and the full fiscal year 2024 has been notably strong. In Q4FY24, Sarveshwar Foods reported a 90.5% increase in net sales, reaching Rs 247.32 crore, and a 146.2% surge in net profit, amounting to Rs 4.61 crore compared to Q4FY23. For the entire fiscal year, the company's net sales grew by 26.2% to Rs 869.59 crore, while net profit jumped by 119.2% to Rs 17.34 crore compared to the previous year. These figures underscore the company's ability to sustain growth and profitability, even in a challenging economic environment.

In the fiscal year 2023-24, Sarveshwar Foods undertook several strategic corporate actions to enhance shareholder value. The company issued bonus shares in a 2:1 ratio, rewarding shareholders with two additional shares for every share held. Additionally, the company executed a stock split, reducing the face value of its shares from Rs 10 to Rs 1. These actions were aimed at improving liquidity and making the stock more accessible to a broader range of investors.

Sarveshwar Foods Limited has a legacy spanning over 130 years in the rice cultivation, processing, and trade industry, particularly in Jammu & Kashmir. The company is a key player in both the Basmati and non-Basmati rice markets, catering to domestic and international consumers. Its crops are cultivated using sustainable practices, nourished by the pristine waters of Himalayan snowmelt and organic manure. This commitment to eco-friendly agriculture is reflected in their 'NIMBARK' brand, which promotes a 'SATVIK' lifestyle centered on conscious, sustainable living.