Penny stock below Rs 10: Company Signs MoU with German Firm for Advanced Rice Storage & Smoke Technology

Sarveshwar Foods Limited (SFL), an Indian agro and FMCG company, has signed a Memorandum of Understanding (MoU) with Foodtech Solutions GmbH, a German technology firm. This agreement focuses on bringing advanced technology to India for rice storage, preservation, and preparation. The collaboration aims to enhance SFL's product quality and expand its presence in international markets by integrating innovative solutions with its traditional expertise in organic and basmati rice production.

The core of the MoU involves two key technologies. The first is a CO₂-based storage system that uses reusable cocoons to preserve rice freshness without chemical preservatives, ensuring a longer shelf life and preventing contamination. The second is a smoke generator technology designed to give rice a premium smoky flavour, a feature that caters specifically to consumer preferences in international markets like Europe, the Middle East, and North America.

This strategic partnership is expected to strengthen Sarveshwar's premium product portfolio and differentiate its offerings in a competitive global market. By adopting these advanced solutions, the company plans to accelerate its export growth, build greater consumer trust, and capture new market opportunities. The MoU aligns with SFL's long-term strategy of prioritising innovation, sustainability, and global competitiveness.

About the Company

Sarveshwar Foods Limited (SFL), an ISO 22000:2018, USFDA and BRC-certified company, specialises in manufacturing, trading, processing and marketing branded and unbranded basmati and non-basmati rice globally. With over 130 years of heritage, SFL, based in Jammu and Gandhidham, also offers a range of "NIMBARK" organic products, grown without artificial fertilisers in the Himalayan foothills. SFL utilises a multi-channel sales strategy, including conventional distribution, proprietary retail outlets and e-commerce platforms like Amazon and Flipkart.

According to Quarterly Results, the net sales increased by 29.3 per cent to Rs 301.35 crore and net profit increased by 127.5 per cent to Rs 7.02 crore in Q1FY26 compared to Q1FY25. In FY25, net sales increased by 31 per cent to Rs 1136.23 crore and net profit increased by 60 per cent to Rs 26.92 crore compared to FY24.

The company has a market cap of over Rs 900 crore and has delivered good profit growth of 36.3 per cent CAGR over the last 5 years. The stock is up by 50 per cent from its 52-week low of Rs 5.63 per share and has given multibagger returns of over 2,000 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.