On Monday, October 21, shares of Sarveshwar Foods saw a roughly 10% increase in intraday trading after the firm released its remarkable financial results for the quarter that ended in September 2024 (Q2FY25). Investor interest has been piqued by the microcap FMCG company that specialises in organic products and has demonstrated notable growth in revenue and profit.
Compared to ₹4.83 crores during the same quarter the previous year, Sarveshwar Foods reported a strong 68.53 per cent growth in net profit for Q2FY25, coming in at ₹8.14 crore. Additionally, the company’s sales increased by a robust 32.20 per cent, from ₹205.22 crores in the similar period of 2023 to ₹271.31 crore. This result indicates Sarveshwar Foods’ capacity to grow and meet the increasing demand for organic products.
The business’s financial success was similarly impressive in the first half of FY25. From ₹7.73 crore in the first half of FY24 to ₹11.2 crore over the period, net profit increased by about 45%. Meanwhile, operating revenue rose by more than 27% to ₹504.36 crore from ₹396.3 crore during the same period the previous year.
The Sarveshwar Group Chairman, Rohit Gupta, expressed his excitement over the company’s performance, pointing out that sales for the first half of the fiscal year exceeded ₹500 crore. He gave due credit to product innovation and the rising customer demand for sustainable and organic food goods, especially those sold under Sarveshwar’s ‘NIMBARK’ brand.
Gupta underlined the company’s commitment to quality, sustainability, and farmer empowerment, highlighting how these factors have strengthened its supply chain and increased its market share. Sarveshwar Foods made a big move in July 2024 to fortify its capital structure and fund expansion. The issuance of 10,20,00,000 fully convertible warrants at an issue price of ₹9.70 per warrant had been approved by the Board of Directors. Individuals in the “Non-Promoter, Public Category” were to get these warrants, with the option to convert each one into a single equity share.
Stock Price Trend
After reporting impressive Q2 results, Sarveshwar Foods’ stock shot up over 10% to ₹10.78, an intraday high. The stock has increased 167.5 per cent from its 52-week low of ₹4.03, recorded in October 2023, even if it is still 31% below its all-time high of ₹15.73, reached in February 2024. With a 118 per cent gain in the last year and a 98 per cent increase so far in 2024, this stock has produced multi-bagger gains.
The business has been operating profitably lately; in October, its shares increased by roughly 6% after rising by 12% in September. Due to its solid financial performance and growing market share in the organic food industry, investors are starting to take a closer look at Sarveshwar Foods as a potential growth prospect.
