Sarveshwar Foods Ltd. (SARVESHWAR) AI Stock Analysis

• Market Cap: ₹5.07B
• Dividend Yield: N/A
• Average Volume (3M): 1.41M
• Price to Earnings (P/E): 14.4
• Beta (1Y): 1.34
• Revenue Growth: 29.26%
• EPS Growth: 46.09%
• Country: IN
• Employees: 38
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.07
• Shares Outstanding: 1,228,726,400
• 10 Day Avg. Volume: 908,866
• 30 Day Avg. Volume: 1,413,780
• PEG Ratio: -0.26
• Price to Book (P/B): 2.11
• Price to Sales (P/S): 0.56
• P/FCF Ratio: -24.46
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: ₹4.00 ▼(-12.85% Downside)

Sarveshwar Foods Ltd. faces significant challenges with financial performance, particularly in managing cash flow and debt. Technical indicators suggest bearish momentum, though oversold conditions may offer a rebound opportunity. Valuation is reasonable, but the lack of a dividend yield may deter some investors.

Positive Factors

Revenue Growth

Consistent high top-line growth over multiple years indicates solid demand and successful scale-up of processing and distribution operations. Durable revenue expansion supports capacity utilization, bargaining power with suppliers, and provides a larger base to absorb cost shocks, aiding long-term business resilience.

Strengthened Equity Base

An improved equity position enhances the company’s balance sheet resilience and credit profile. Stronger shareholders' equity provides a buffer against earnings volatility, reduces insolvency risk, and creates capacity to raise debt or equity for strategic investments without immediately impairing solvency.

Diversified Market Channels

Presence in both branded consumer packs and export/bulk markets diversifies revenue sources and demand exposure. This structural channel mix supports steady volume flows, cross-market brand recognition, and the ability to shift focus between domestic and export demand cycles over time.

Negative Factors

Cash Flow Volatility

Intermittent negative operating cash flow and a sharp fall in free cash flow reduce internal funding for working capital, capex, and deleveraging. Over months this forces dependence on external financing, raising refinancing and liquidity risk and constraining strategic investment flexibility.

Rising Leverage

A trend of increasing total debt elevates interest obligations and financial risk, especially with uneven cash generation. Higher leverage limits flexibility to pursue growth or weather commodity-driven margin swings, and could necessitate asset sales or equity raises under stress.

Margin Volatility

Fluctuating gross and net margins signal sensitivity to input costs, product mix, and pricing power. Persistent margin volatility undermines earnings predictability and return on capital, making long-term planning, consistent reinvestment, and stable debt servicing more difficult.

Sarveshwar Foods Ltd. Business Overview & Revenue Model

Company Description

Sarveshwar Foods Limited manufactures and sells of basmati and non-basmati rice in India. It provides basmati brown rice, raw rice, steam rice, silky raw rice, white parboiled rice, and golden parboiled rice; and non-basmati rice, including Indian long/medium/short grain white raw rice, white parboiled rice, grain golden parboiled rice, and grain brown rice. The company also offers organic foods under the brand name of Nimbark. In addition, it exports its products. The company was formerly known as Sarveshwar Organic Foods Limited and changed its name to Sarveshwar Foods Limited in June 2015. Sarveshwar Foods Limited was founded in 1890 and is based in Jammu, India.

How the Company Makes Money

Sarveshwar Foods Ltd. generates revenue through multiple streams, primarily by selling its processed food products to retailers, wholesalers, and directly to consumers. The company benefits from a diversified product portfolio, which includes various types of pulses and rice, providing it with a stable demand base. Additionally, SARVESHWAR engages in strategic partnerships with local and international distributors to expand its market reach. The company also invests in branding and marketing efforts to enhance customer loyalty and drive sales. Seasonal demand fluctuations in agricultural products can influence revenue, but the company's focus on quality and customer satisfaction helps mitigate potential impacts. Moreover, operational efficiencies and cost management practices contribute to overall profitability.

Sarveshwar Foods Ltd. Financial Statement Overview

Summary

Sarveshwar Foods Ltd. shows strong revenue growth but faces challenges with profit margin stability and debt management. Cash flow inconsistencies highlight liquidity risks, necessitating careful leverage and operational management.

Income Statement

Sarveshwar Foods Ltd. exhibits a robust revenue growth trajectory, particularly from 2020 to 2024, with a notable increase in total revenue. However, the gross profit margin has experienced volatility, as seen in the significant drop in gross profit in 2025. The net profit margin also shows inconsistency, reflecting fluctuations in net income, which impacts overall profitability.

Balance Sheet

The company's debt-to-equity ratio indicates moderate leverage, with total debt consistently increasing over the years. Stockholders' equity has strengthened, supporting equity ratio improvement. However, the high level of debt relative to equity poses a potential risk if not managed carefully.

Cash Flow

Cash flow management remains a challenge for Sarveshwar Foods. Operating cash flow has been inconsistent, with negative values in several years, including 2025. Free cash flow also experienced fluctuations, particularly dropping significantly in 2025, highlighting potential liquidity risks.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.05B	11.36B	8.70B	6.89B	6.05B	5.15B
Gross Profit	1.14B	1.17B	816.42M	633.36M	572.50M	505.24M
EBITDA	803.51M	773.16M	3.22B	405.05M	300.44M	224.29M
Net Income	308.36M	269.19M	2.75B	77.90M	33.52M	52.38M
Balance Sheet
Total Assets	0.00	9.06B	7.91B	5.60B	4.72B	5.07B
Cash, Cash Equivalents and Short-Term Investments	12.89M	43.57M	2.57M	1.93M	3.91M	7.52M
Total Debt	0.00	3.04B	2.98B	2.93B	2.72B	2.66B
Total Liabilities	-3.05B	6.02B	5.38B	3.47B	3.08B	3.47B
Stockholders Equity	3.05B	3.04B	2.53B	2.14B	1.63B	1.60B
Cash Flow
Free Cash Flow	-9.26M	-262.17M	2.49B	-359.61M	197.00M	-271.98M
Operating Cash Flow	-7.79M	-248.82M	2.50B	-357.49M	198.56M	-268.63M
Investing Cash Flow	-42.50M	-41.32M	156.84M	-58.36M	-8.07M	-51.21M
Financing Cash Flow	50.17M	300.46M	-64.84M	413.51M	-194.09M	312.79M

Sarveshwar Foods Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SARVESHWAR, the sentiment is Neutral. The current price of 4.59 is above the 20-day moving average (MA) of 4.13, above the 50-day MA of 4.29, and below the 200-day MA of 6.12, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 47.14 is Neutral, neither overbought nor oversold. The STOCH value of 42.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:SARVESHWAR.

Sarveshwar Foods Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IFBAGRO	65 Neutral	₹10.17B	21.27	―	―	23.11%	1930.97%
AMBIKCO	63 Neutral	₹7.67B	12.27	―	2.91%	-15.70%	-4.19%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
EIFFL	58 Neutral	₹6.30B	179.87	―	―	24.66%	59.09%
FOODSIN	54 Neutral	₹4.97B	14.61	―	0.43%	11.46%	-0.46%
SARVESHWAR	51 Neutral	₹5.07B	14.37	―	―	29.26%	46.09%
GLOSTERLTD	48 Neutral	₹7.10B	89.10	―	6.20%	86.75%	―

Sarveshwar Foods Ltd. Corporate Events

Sarveshwar Foods Forfeits Rs 23.78 Crore as 10.2 Crore Warrants Lapse

Sarveshwar Foods Limited has announced that 10.2 crore warrants, issued on a preferential basis in July 2024 and entitling holders to subscribe to an equivalent number of equity shares within 18 months, have lapsed after the allottees failed to exercise their conversion option by the 24 January 2026 deadline. As a result, the company has forfeited the upfront payment of approximately Rs 23.78 crore—representing 25% of the issue price—received from these warrant holders, including several institutional investors, which halts the expected equity dilution while providing a non-refundable capital inflow that modestly strengthens the company’s balance sheet and alters the anticipated shareholder base composition.

Sarveshwar Foods Raises Equity Capital via Conversion of 37.5 Lakh Warrants

Sarveshwar Foods Limited has approved the allotment of 37,50,000 equity shares of face value Re 1 each at an issue price of Rs 9.70 per share, following the conversion of an equivalent number of warrants issued on a preferential basis. The conversion, approved by the board through a resolution passed by circulation on 24 January 2026, brought in Rs 2.73 crore as 75% of the issue price payable on conversion, and increases the company’s paid-up equity share capital to Rs 123.27 crore, with the newly issued shares ranking pari passu with existing equity. This step forms part of a larger warrant issue previously approved in July 2024 and underscores the company’s continued use of preferential allotments to strengthen its equity base and fund its strategic and operational requirements, with implications for shareholding dilution and capital structure for current investors.

Sarveshwar Foods Confirms Proper Utilization of Rights Issue Funds

Sarveshwar Foods Limited announced that there is no deviation or variation in the utilization of funds raised through its recent rights issue, as confirmed by the company’s audit committee. This assurance of proper fund utilization underscores the company’s commitment to transparency and adherence to regulatory requirements, potentially strengthening stakeholder confidence and supporting its strategic financial management.

Sarveshwar Foods Releases Monitoring Agency Report for Q3 2025

Sarveshwar Foods Limited has released a Monitoring Agency Report for the quarter ending September 30, 2025, in connection with its recent rights issue of shares. The report, reviewed by Infomerics Valuation & Rating Limited and approved by the company’s Audit Committee and Board of Directors, is part of the company’s compliance with regulatory requirements. This development is significant for stakeholders as it reflects the company’s commitment to transparency and regulatory adherence, potentially impacting its market positioning and investor confidence.