Shares of penny stock Sarveshwar Foods were in focus on Friday after the company announced business update for the first half of financial year 2024-25 (FY25).
The stock initially dropped by as much as 3.8 percent, hitting a low of ₹9.63 during intra-day trading. However, the stock later recovered as the market gained momentum, rising by 7.5 percent from its day’s low and reaching a high of ₹10.35.
Business Update
In its H1FY25 business update, Sarveshwar Foods revealed that it had surpassed ₹500 crores in sales during the first half of the current fiscal year. This significant milestone was attributed to the growing popularity of the company’s premium offerings, especially its organic products sold under the brand name ‘Nimbark.’ The company reported that this increase in sales has led to profit growth, driven by its focus on providing high-quality organic offerings. The company noted that its commitment to these products has played a key role in driving this performance.
In a press release, Rohit Gupta, Chairman of Sarveshwar Group, commented, “This outstanding achievement is a testament to the trust our customers place in us and underscores our unwavering commitment to our long-term business strategy.” He further emphasized the importance of the growing recognition of their organic products, which has significantly contributed to the company’s growth. Gupta also pointed out that the company’s focus on delivering quality organic offerings not only enhances lives but also promotes sustainable practices. He added that the company is on track to achieve approximately 25 percent CAGR growth continuously.
The company also discussed the shifting consumer trends, particularly the rise in health consciousness and the increasing demand for packaged and organic products. This trend is especially prominent among younger consumers, both in India and globally, who are increasingly inclined towards sustainable and health-focused choices. Sarveshwar Foods stated that it is rapidly adapting its sales strategy to take full advantage of these evolving market conditions.
Looking ahead, the company is strategically positioned to build on its current momentum and further solidify its presence in the market. Sarveshwar Foods is committed to leveraging its rich heritage and expertise to drive innovation across its product lines, ensuring that it stays attuned to the changing preferences of consumers. The company aims to continue enhancing its offerings by investing in sustainable practices and expanding its distribution channels to meet the growing demand for high-quality, organic products.
As the market landscape evolves, Sarveshwar Foods plans to remain proactive, adapting to shifts in consumer behavior and reinforcing its position as a leader in the agro-product FMCG sector. The company is focused on setting new benchmarks for excellence in quality and sustainability. By taking a forward-thinking approach, Sarveshwar Foods aims to capture new growth opportunities while cultivating lasting relationships with customers who value integrity and health in their food choices.
Stock Price Trend
The penny stock has rallied 89 percent in the last 1 year and 90 percent in 2024 YTD. It gained 3.5 percent in October so far after an over 12 percent rise in September.
Post today’s rise, the stock is now over 34 percent away from its peak of ₹15.73, hit in February 2024 while it has soared 157 percent, giving multibagger returns from its 52-week low of ₹4.03, recorded in October last year.
Read More: Penny stock Sarveshwar Foods jumps 7.5% from day’s low as market recovers, announces H1FY25