Penny Stock Under Rs 10: Board Approves Rs 150 Crore Rights Issue, Reports 29% YoY Revenue Growth in Q1 FY26

On Monday share price of Sarveshwar Foods Limited jumped over 6 per cent to its intraday high. As of 2.56 pm IST, the stock price was trading at 8.35 per share, up by 4 per cent

Sarveshwar Foods Limited has announced that its Board of Directors, in a meeting held on August 11, 2025, approved a rights issue to raise up to Rs 150 crore and reviewed its financial performance for the quarter ended June 30, 2025 (Q1 FY26). The rights issue will involve the offer and issuance of fully paid-up equity shares with a face value of Re. 1 each, to be offered to eligible shareholders as of a record date to be announced later. A Rights Issue Committee has been formed to determine the detailed terms of the issue, including the entitlement ratio, issue price, size, and timing, subject to applicable regulatory approvals.

In the Quarterly Results of June 2025, on a consolidated basis, the company posted a Revenue from Operations of Rs 301.35 crore, representing a 13.82 per cent decline from Rs 349.72 crore in Q4 FY25, but a 29.27 per cent increase over Rs 233.05 crore in Q1 FY25. Total Income was Rs 301.71 crore, which was down 14.47 per cent from Rs 352.50 crore QoQ, yet up 29.07 per cent from Rs 233.80 crore YoY. The Total Profit attributable to owners of the company came in at Rs 7.02 crore, a 20.41 per cent drop from Rs 8.81 crore in the previous quarter, but a strong 127.31 per cent growth from Rs 3.09 crore in the same quarter last year.

In a key management development, the Board approved the appointment of Mr. Anand Sharda as the Chief Financial Officer (CFO) of the company, effective August 11, 2025. Mr. Sharda is a Chartered Accountant with 19 years of experience in accounting and strategic financial management across sectors and has previously served at Parag Milkfoods Limited, RBL Bank Limited, DCB Bank Limited, and Publicis Groupe.

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About the Company

Sarveshwar Foods Limited (SFL), an ISO and USFDA-certified company with additional global food safety accreditations, specialises in manufacturing, trading, processing and marketing branded and unbranded basmati and non-basmati rice. Operating from Jammu and Kashmir and Gujarat, SFL boasts a 130-year legacy and has expanded into other FMCG and organic products under the "NIMBARK" brand, sourced from the organic-rich Himalayan foothills. SFL utilises a diverse sales strategy encompassing conventional channels, proprietary retail outlets and e-commerce platforms and is notably the first private sector food company from Jammu & Kashmir to be listed on the NSE and BSE.

The company has a market cap of over Rs 819 crore and has delivered good profit growth of 36.3 per cent CAGR over the last 5 years. The stock is up by 48 per cent from its 52-week low of Rs 5.63 per share and has given multibagger returns of 1,987 per cent in 5 years.

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