Sarveshwar Foods shares hit upper circuit after Q1 results, strong revenue growth

Shares of Sarveshwar Foods hit an upper circuit during the trading session on Wednesday after the company announced its earnings for the June 2023 quarter and the company board approved the conversion of select warrants issued by the company earlier.

Sarveshwar Foods reported a 61 per cent rise in the net profit on a quarter-on-quarter (QoQ) basis to Rs 2.91 crore in the June 2023 quarter. The company had clocked a net profit of Rs 1.81 crore in the March 2023 quarter. Its net profit improved on a year-on-year (YoY) basis from Rs 2.8 crore in the year ago period.

Revenue from operations increased 45 per cent QoQ to Rs 187.68 crore in the quarter ended on June 30, 2023. The company's revenue came in at Rs 129.81 crore in the quarter ended on March 31, 2023. The company's revenue stood at Rs 197 crore in the year ago period.

Shares of Sarveshwar Foods hit an upper circuit of 5 per cent to Rs 121 on Wednesday, commading a total market capitalization of more than Rs 365 crore. The scrip had settled at Rs 115.25 in the previous trading session on Monday.

Sarveshwar Foods have rallied about 1,350 per cent in the last three years, from its covid-19 lows, while the stock has jumped about 100 per cent in the last one year. Even in the last one month, it has delivered a return of 65 per cent in the last one month.

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The company board also approved conversion of 20,30,000 warrants into 20,30,000 equity shares to the promoter, non-promoter, and public shareholders of the company on a preferential basis, upon receipt of balance amount aggregating to Rs. Rs 12.36 crore at the rate of Rs. 60.90 per warrant.

Earlier this month, the company board of Sarveshwar foods had approved the sub-division of its equity shares in 1:10 ratio. The board has also approved the proposal of issuance of bonus equity shares to the shareholders of the company in the ratio of 2:1, the company told exchanges. However, these actions are subject to approval from the shareholders.

Incorporated in 2004, Jammu & Kashmir based Sarveshwar Foods is a rice company, engaged in manufacturing, trading and export basmati and non-basmati rice, whose range includes the complete range of Indian traditional Basmati rice, 1121 Basmati Rice, Pusa Basmati Rice, Sharbati Rice, PR 11 rice, IR 8 rice, among others.

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