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Sarveshwar Foods Limited (SFL) is a renowned Indian food manufacturer with a legacy spanning over 130 years. Based in Jammu and Kashmir, SFL is committed to producing high-quality, healthy, and tasty rice products. SFL offers a wide range of branded and unbranded Basmati and non-Basmati rice, both domestically and internationally. Recognising the health benefits of organic farming, SFL has expanded its operations to include a line of organic products under the brand name ‘Nimbark’. For H1FY25, compared to H1FY24, the company has reported a strong increase in total revenue, EBITDA and PAT. 

Its total revenue grew by 28.37 per cent to ₹504.36 crore, EBITDA increased by 35.53 per cent to ₹34.14 crore and PAT grew by 45.22 per cent to ₹11.24 crore. In Q2FY25, compared to Q2FY24, the company also reported growth in all the three metrics. The total revenue grew by 32.21 per cent to ₹271.31 crore, EBITDA increased by 11.59 per cent to ₹21.84 crore and PAT grew by 66.29 per cent to ₹8.15 crore. It’s great that your shares of Sarveshwar Foods have doubled in value, but it’s important to be cautious. The stock is overvalued, and some of the company’s owners have sold some of their shares. So, we recommend SELL. 



Founded in 2017, Ola Electric Mobility Limited is an electric vehicle company that primarily manufactures electric vehicles and core components for electric vehicles. The company successfully raised ₹6,415 crore through its Initial Public Offering (IPO), of which ₹5,500 crore was a fresh issue. The IPO was listed on August 9, 2024. The fresh issue proceeds will be used for various purposes, including capital expenditure for expanding the capacity of its subsidiary’s cell manufacturing plant, repayment of borrowings and investment in research and product development. 

The money will also be used for funding organic growth initiatives and general corporate purposes. In its annual results (FY24), the company reported net sales of ₹5,010 crore and net loss of ₹1,584 crore. Ola Electric Mobility, a new company listed on the stock market in 2024, is in the rapidly growing electric vehicle sector. However, the company is facing challenges such as misleading advertisements, unfair trade practices, and service-related issues. Additionally, the company has built up a negative image on account of its irresponsible statements. These problems are temporary and likely to be fixed soon. If you are okay with taking risks and are willing to wait for long-term gains, we recommend HOLD. 

Established in 1929, South Indian Bank was the pioneering ‘scheduled bank’ among private banks in Kerala. With a robust presence in South India, especially Kerala, the bank offers a comprehensive range of financial services, including retail and corporate banking, para-banking activities like debit cards and third-party financial product distribution, and specialised treasury and foreign exchange services. South Indian Bank is aggressively pursuing strategies to bolster deposit growth while maintaining a robust expansion of its assets. 

The bank aims to increase deposits by 8-10 per cent and assets by 10-12 per cent, aligning its balance-sheet for a more retailfocused future. In its September quarter results, the bank demonstrated steady progress across key metrics. Its net interest income (NII) rose 6.3 per cent year-over-year to ₹882.7 crore. 

Additionally, the asset quality improved, with gross non-performing assets (NPAs) decreasing from 4.5 per cent to 4.4 per cent and the net NPAs declining from 1.44 per cent to 1.31 per cent quarter-on-quarter. Looking ahead, South Indian Bank is focusing on retail and MSME sectors as key growth drivers, shifting away from corporate lending. 

Currently, corporate loans constitute 40 per cent of the bank’s portfolio, but this is expected to decrease to about one-third in the medium term. The slack will be covered with increase in retail and MSME lending. South Indian Bank has also successfully adopted technology, thus making it easier for customers to get loans and use online banking. These online tools will be enhanced in the near future. However, while South Indian Bank is doing well, the whole banking industry is facing some challenges. People aren’t depositing as much money with banks as they earlier used to. So, for now, it might be a good idea to consider investing in parts. 

Hence, we recommend BUY. 
 

Lloyds Engineering Works, a leading industrial equipment manufacturer founded in 1974, specialises in designing, manufacturing and commissioning heavy-duty equipment, machinery and systems for a wide range of sectors, including hydrocarbon, oil and gas, steel, power, nuclear and marine. With state-of-the-art facilities in Thane and Mumbai, Lloyds Engineering Works offers a comprehensive portfolio of products, including pressure vessels, heat exchangers, steel mill equipment, and marine loading arms. Its commitment to quality and innovation has earned the company numerous industry approvals and a loyal customer base. 

The company’s net sales increased by 74.21 per cent to ₹212.15 crore in Q2FY25 compared to Q2FY24. The EBITDA increased by 48.45 per cent to ₹37.59 crore and its net profit increased by 48.75 per cent to ₹27.95 crore. For the first half of FY25, the net sales increased by 47.97 per cent to ₹347.57 crore, the EBITDA increased by 54.4 per cent to ₹64.58 crore and the net profit increased by 55.45 per cent to ₹49.17 crore compared to H1FY24. The company has exhibited robust financial performance, with a remarkable 94.2 per cent CAGR in profit growth over the past five years. This growth trajectory has been complemented by a consistent dividend payout of 43.7 per cent, demonstrating a commitment to shareholder value. 

Additionally, the company has achieved a significant reduction in working capital requirements, streamlining its operations and improving efficiency. The company’s substantial market capitalisation of over ₹8,000 crore and a healthy order book of ₹1,365.86 crore as of September 30, 2024 suggest a promising outlook for future growth. The company has a lot of orders in the pipeline and is adopting new technologies for product improvement. It is also expanding by buying other businesses. Overall, Lloyds Engineering Works seems to be in a strong position and so it might be a good idea to HOLD. 

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