Penny stock under ₹10: Shares of Sarveshwar Foods, a penny stock trading under ₹10, climbed over 5 percent in intra-day trade on Wednesday, February 5, following a credit rating upgrade by Infomerics Valuation and Rating.
Credit Rating Upgrade
Infomerics Valuation and Rating upgraded Sarveshwar Foods’ Long-Term Bank Facility worth ₹114.01 crore to ‘IVR BBB+/Stable’ (IVR Triple B Plus with Stable Outlook) from ‘IVR BBB/Stable’ (IVR Triple B with Stable Outlook). The rating agency also revised the company’s Short-Term Bank Facility worth ₹23.80 crore to ‘IVR A2’ (IVR A Two) from ‘IVR A3+’ (IVR A Three Plus), signaling improved financial stability and creditworthiness.
Major Export Order Secured
In December 2024, Sarveshwar Foods announced securing an export order of 5,350 metric tons of Basmati rice valued at approximately ₹498 million from I SIFOL LLC, USA. Established in 2008 in New York, I SIFOL LLC is a key brand representative and distributor with a national presence in the United States, reaching over 1,000 ethnic retail outlets and 1,500 ethnic restaurants. This order reinforces Sarveshwar Foods’ growing international footprint and demand for its organic rice products.
Strong Financial Performance
Sarveshwar Foods delivered robust financial results in Q2FY25, reporting a 68.53 percent rise in net profit to ₹8.14 crore, compared with ₹4.83 crore in the same period last year. Revenue also surged by 32.20 percent, reaching ₹271.31 crore from ₹205.22 crore in Q2FY24. This performance highlights the company’s operational efficiency and strong market demand.
For the first half of FY25, net profit grew nearly 45 percent to ₹11.2 crore, up from ₹7.73 crore in H1FY24. Revenue from operations increased by over 27 percent to ₹504.36 crore, compared with ₹396.3 crore in the corresponding period last year, showcasing sustained growth momentum.
Stock Performance
Following the credit rating upgrade, Sarveshwar Foods’ stock rose 5.1 percent to an intra-day high of ₹8.19. While the penny stock remains 48 percent below its all-time high of ₹15.73, recorded in February 2024, it has gained 11.5 percent from its 52-week low of ₹7.34, registered in January 2025. However, the stock has declined 11 percent over the past year, including an 8 percent drop in January 2025 and a 10 percent decline in December 2024.
