HOW THIS FMCG PENNY STOCK GREW 2400% IN FOUR YEARS
Published By MintGenie Team | 22 Mar, 2024
Sarveshwar Foods' Remarkable Growth
Sarveshwar Foods stock has surged 2400% in the last 4 years, rising from ₹0.34 to around ₹8.5 currently, offering significant returns for investors.
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Product Portfolio
The company manufactures and sells basmati and non-basmati rice in India, including various types of rice and organic foods under the brand name of Nimbark.
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Stock Performance
Sarveshwar Foods stock has seen a surge of over 253% in the last year and 55% in 2024 YTD, although it faced a 37% decline in March after three consecutive months of gains.
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Market Milestones
Despite the recent dip, the stock remains 46% away from its record high and has soared over 310% from its 52-week low, indicating strong market optimism.
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Financial Performance
In Q3FY24, the company reported a significant 118% increase in net profit and a 17% rise in revenue compared to the same quarter last year.
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Brokerage View
ICICI Direct notes the company's effective capital usage, improving RoCE, and consistent profit growth, although it cautions about the recent decline in stock value.
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Understanding Penny Stocks
Penny stocks, valued below ₹10 in India, offer affordability and speculative allure but come with inherent risks due to extreme volatility, limited liquidity, and potential for manipulation.
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Volatility and Risks
Penny stocks are prone to sharp fluctuations driven by market sentiment rather than fundamental value, exposing investors to risks such as pump-and-dump schemes and liquidity challenges.
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Regulatory Oversight
Limited regulatory oversight and reporting requirements make penny stocks susceptible to fraudulent activities, emphasizing the need for thorough due diligence before investing.
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Investor Caution
While some investors are attracted to penny stocks for their perceived growth potential, it's essential to exercise caution and conduct thorough research to mitigate risks associated with this volatile market segment.