Small-cap penny stock under ₹10: FMCG stock jumps 7% despite weak stock market | Stock Market News
Source: Live Mint
Small-cap penny stock under ₹10: Sarveshwar Foods Limited, a small-cap FMCG stock trading under ₹10, saw its shares jump around 7 per cent to ₹9.7 on Wednesday, November 27 despite a weak market mood. The surge comes following a significant order win by the company’s Singapore-based subsidiary, Green Point Pte. Ltd.
The company in a BSE filing said that its wholly-owned subsidiary Green Point has landed a 12,000 MT order for Indian Long Grain Parboiled Rice from Monarda Commodities Pte. Ltd., valued at approximately Rs. 445 million. This deal strengthens the subsidiary’s revenue pipeline and puts it on track to achieve ₹2000 million (approximately Rs. 44.5 crore) in annual revenue.
Following this announcement, Sarveshwar Foods share price was trading in the green, up 6.53 per cent at ₹9.63 at 9:58 am on the BSE. The company enjoys a market capitalisation of ₹942.60 crore. Sarveshwar Foods stock price hit its 52-week high of ₹15.55 on February 28, 2024.
Chairman Rohit Gupta shared his optimism, saying, “We are excited about this significant order and the promising outlook for Green Point’s contribution to our global business. With our focus on high-quality rice-based products and the growing preference for gluten-free diets, we are confident in achieving our Rs. 2000 Million target this year for this Singapore Subsidiary.”
Earnings Snapshot
Sarveshwar Foods posted a 32.20 per cent jump in its revenue for Q2FY25 at ₹271.31 crore as against ₹205.22 crore posted in the same period last year. Meanwhile, its profit after tax (PAT) came in at ₹8.15 crore, up 68 per cent year-on-year.
Sarveshwar Foods, based in Jammu, is a leading player in the manufacturing, trading, and marketing of branded and unbranded basmati and non-basmati rice. The company has expanded into organic FMCG products under the ‘Nimbark’ brand. It is also the first private-sector food company listed on the NSE and BSE in Jammu & Kashmir.
Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
