Rice stock jumps 10% after receiving approval for ₹197 Cr basmati project backed by JK Govt

Synopsis: Sarveshwar Foods has received approval from the Jammu & Kashmir government agency to develop Basmati rice farming and processing project in Jammu & Kashmir 

The shares of this rice stock is engaged in processing, milling, branding and exporting premium Basmati rice, jumped upto 10 percent in a day’s trading session upon securing approval to develop Basmati rice farming and processing project.

With the market capitalization of Rs. 528 Crores, the shares of Sarveshwar foods has reached an intraday high of Rs. 4.65  per equity share rising nearly 10 percent from the previous day close of Rs. 4.23  per share. 

What is the NEWS:

Sarveshwar Foods has recently received in-principle approval from a Jammu & Kashmir government agency for a ₹197.29 crore project aimed at developing Basmati rice farming and processing in the region. The project is part of the Holistic Agriculture Development Programme (HADP) and seeks to strengthen the entire Basmati value chain, from seed selection and scientific farming to processing, storage, branding, and exports.

Their key project allocations include ₹71.14 crore earmarked for pre-production and production systems, ₹57.59 crore allocated toward post-harvest management and value addition, ₹12.74 crore dedicated to logistics, branding, and marketing, and ₹55.83 crore set aside for other project-related infrastructure.

The initiative is expected to help farmers adopt better-quality seeds and modern farming practices, reduce post-harvest losses, and improve access to domestic and export markets, while also creating employment and income opportunities in rural areas. The project will promote premium Basmati varieties such as B-370, CSR-30, and other high-quality strains.

The ₹197 crore investment will be utilised across farming and production systems, processing and storage facilities, value addition, branding, and supporting infrastructure.

Company analysis and financials: 

Sarveshwar Foods is one of the leading integrated rice companies in India, primarily engaged in the processing, milling, branding, and export of premium Basmati rice. The company has built a strong domestic distribution network with over 75 distributors and more than 45,000 retail outlets across the country, along with an international presence in over 25 countries.

The company has a warehousing capacity of 300,000 tonnes and operates two rice milling plants with a combined processing capacity of 14 tonnes per hour, supported by fully automated packaging technology.

Year on Year analysis: The revenue from operations has increased from Rs. 271 Crores to 334 Crores, up 23.24 percent. Operating income has decreased from Rs. 20.82  Crores to 17.37 Crores, down 16.5 percent and net income has increased from Rs. 8.14 Crores to 8.23 Crores, up 1.1 percent.  

Quarter on Quarter analysis: The revenue from operations has increased on a quarterly basis from Rs. 301.35 Crores to 334 Crores, up 10.8 percent. Operating income has increased from Rs. 16.77 Crores to 17.37 Crores, up 3.5 percent and net income has increased from Rs. 7.03 Crores to 8.23 Crores, up 17 percent.

Written By Vachan Kadli 

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