Sarveshwar Foods Ltd. (SARVESHWAR) AI Stock Analysis

• Market Cap: ₹3.76B
• Dividend Yield: N/A
• Average Volume (3M): 1.41M
• Price to Earnings (P/E): 15.0
• Beta (1Y): 1.14
• 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: -0.25
• Price to Book (P/B): 2.00
• Price to Sales (P/S): 0.54
• P/FCF Ratio: -23.21
• 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: ₹3.00 ▼(-34.64% Downside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is held back most by weak technicals (strong downtrend with negative momentum) and mixed financial quality (volatile margins, rising debt, and inconsistent/negative cash flows). A moderate P/E provides some support but is not enough to offset the financial and trend-related risks.

Positive Factors

Sustained Revenue Growth

Multi-year top-line growth demonstrates durable demand and expanding market penetration in core rice products. Sustained revenue increases provide scale benefits, support ongoing investment in processing and distribution, and create room to improve unit economics and absorb commodity shocks over the medium term.

Branded & Export Market Presence

Operating both consumer brands and export channels creates structural diversification across geographies and customer types. Brand recognition in basmati/non-basmati rice supports premium positioning, reduces single-market dependency, and helps stabilize volumes and realizations across cycles over the coming months.

Strengthening Equity Base

An improving equity ratio provides a thicker capital buffer and enhances solvency. Stronger equity supports working capital for seasonal paddy procurement, reduces immediate refinancing needs, and gives management flexibility to fund selective capex or brand/distribution investments without overleveraging.

Negative Factors

Margin Volatility

Highly variable gross and net margins indicate earnings are sensitive to input costs, processing yields, or pricing pressure. A sharp gross profit decline in 2025 highlights fragile profitability, reducing predictability of cash generation and limiting the firm's ability to consistently fund growth or withstand commodity cost shocks.

Rising Leverage

Consistently rising debt increases interest and refinancing burdens, which can constrain margins and capital allocation. Elevated leverage reduces financial flexibility for seasonality-driven procurement and capex, and heightens vulnerability to rate rises or demand slowdowns, risking liquidity stress over the medium term.

Weak Cash Generation

Inconsistent and negative operating cash flow undermines the company’s ability to self-fund working capital and debt service. A significant free cash flow drop in 2025 raises the probability of external financing, which could increase leverage or dilute returns and impair resilience through seasonal and commodity cycles.

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 makes money mainly by selling rice and rice-based packaged food products. Its core revenue stream comes from procuring paddy/rice, processing it (including milling and, where applicable, aging/value addition), packaging it under its brands, and selling finished goods through trade channels (distributors/wholesalers/retail) and to institutional/other bulk customers. A further revenue stream comes from exports, where the company sells processed and packaged rice to overseas buyers, typically at realizations linked to global demand and commodity pricing. Earnings are influenced by factors such as procurement costs of paddy, processing yields, branding and distribution scale (which affect pricing and margins), mix between branded consumer packs vs bulk sales, and export market conditions (including pricing, logistics, and regulatory environment). Specific details on segment-wise revenue mix, named partnerships, or channel-wise contribution are null.

Sarveshwar Foods Ltd. Financial Statement Overview

Summary

Revenue growth has been strong over 2020–2024, but profitability is unstable (volatile gross/net margins, with a sharp gross profit drop in 2025). Leverage is moderate-to-elevated with rising debt, and cash flow is inconsistent with negative operating cash flow in multiple years (including 2025), creating liquidity risk.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	12.68B	11.36B	8.70B	6.89B	6.05B	5.15B
Gross Profit	1.11B	1.17B	816.42M	633.36M	572.50M	505.24M
EBITDA	771.69M	773.16M	3.22B	405.05M	300.44M	224.29M
Net Income	309.95M	269.19M	2.75B	77.90M	33.52M	52.38M
Balance Sheet
Total Assets	11.27B	9.06B	7.91B	5.60B	4.72B	5.07B
Cash, Cash Equivalents and Short-Term Investments	1.14B	43.57M	2.57M	1.93M	3.91M	7.52M
Total Debt	2.65B	3.04B	2.98B	2.93B	2.72B	2.66B
Total Liabilities	6.64B	6.02B	5.38B	3.47B	3.08B	3.47B
Stockholders Equity	4.63B	3.04B	2.53B	2.14B	1.63B	1.60B
Cash Flow
Free Cash Flow	71.08M	-262.17M	2.49B	-359.61M	197.00M	-271.98M
Operating Cash Flow	73.22M	-248.82M	2.50B	-357.49M	198.56M	-268.63M
Investing Cash Flow	128.99M	-41.32M	156.84M	-58.36M	-8.07M	-51.21M
Financing Cash Flow	902.62M	300.46M	-64.84M	413.51M	-194.09M	312.79M

Sarveshwar Foods Ltd. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SARVESHWAR, the sentiment is Negative. The current price of 4.59 is above the 20-day moving average (MA) of 3.54, above the 50-day MA of 3.90, and below the 200-day MA of 5.71, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 19.36 is Positive, neither overbought nor oversold. The STOCH value of 13.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SARVESHWAR.

Sarveshwar Foods Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMBIKCO	63 Neutral	₹7.14B	11.65	―	2.91%	-15.70%	-4.19%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
EIFFL	58 Neutral	₹5.75B	185.31	―	―	24.66%	59.09%
IFBAGRO	58 Neutral	₹6.74B	43.53	―	―	23.11%	1930.97%
FOODSIN	54 Neutral	₹3.90B	296.89	―	0.43%	11.46%	-0.46%
SARVESHWAR	51 Neutral	₹3.76B	14.95	―	―	29.26%	46.09%
GLOSTERLTD	48 Neutral	₹5.91B	-241.19	―	6.20%	86.75%	―

Sarveshwar Foods Ltd. Corporate Events

Sarveshwar Foods’ Credit Ratings Reaffirmed as Bank Facilities Trimmed

Sarveshwar Foods Limited has announced that Infomerics Valuation and Rating Private Limited has reaffirmed its credit ratings on the company’s bank facilities, maintaining a long-term rating of IVR BBB+ with a stable outlook and a short-term rating of IVR A2. The rated bank facilities have been marginally reduced to Rs 129.73 crore in total, indicating continued lender confidence in the company’s credit profile while reflecting a modest decrease in its sanctioned borrowing limits, which may signal prudent financial management and stable operational performance.

The reaffirmation of both long-term and short-term ratings suggests that Sarveshwar Foods remains in an investment-grade risk category, supporting its ability to access bank financing on relatively steady terms. For investors and other stakeholders, the unchanged rating with a stable outlook points to sustained creditworthiness in the near to medium term, even as the company operates with slightly lower overall bank facility limits.

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.