Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
IPO News

| More

Sarveshwar Foods Limited - IPO NOTE - Arihant Capital Markets

Posted On: 2018-03-05 10:11:52

Sarveshwar Foods Limited primarily engaged in the business of processing and marketing of branded and un-branded basmati and non-basmati rice in the domestic and international markets. Company operations are based in the Jammu Region in the State of Jammu and Kashmir.

Sarveshwar Foods is one of the few Indian companies with a presence across the entire rice value chain, which includes procurement, storage, milling, sorting, packaging, branding and distribution. Product portfolio comprises of Basmati and non-Basmati rice of various kinds including white raw rice, steam rice, broken rice, brown rice and parboiled rice. Along with the varied variety of conventional Basmati and non-Basmati rice, product portfolio also includes organic Basmati and non-Basmati rice including range of other organic products.

"Organic" business also includes Organic Food Products such as Dry Fruits and Nuts, Pulses, Lentin, Flours, Porridge, Spices, Garam Masalas and super foods like Chia Seeds, Flax Seeds, Quinoa Seeds, etc.

Company markets and distributes these organic food products under its brand "Nimbark".

The company currently operates through two rice milling and processing facilities with cumulative processing capacity of 84,240 MTPA. It has three wholly owned subsidiaries, two in India, and one in Dubai.

The company has 132 procurement agents across 5 states for procuring basmati and non-basmati paddy from "mandi", except J&K, where they procure basmati and non-basmati paddy directly from farmers due to non-existence of the mandi system in J&K.

Investment rational:

1. Geographical Location:

The State of Jammu and Kashmir (J&K) has diverse physiographic features, agro-climatic variations and existence of cold arid temperature, inter-mediate and sub-tropical zones within a small geographical area in J&K. Company procures Basmati and non-Basmati paddy from Punjab, Haryana, and Himachal and primarily procures organic Basmati and non-Basmati paddy from the State of Jammu and Kashmir.

2. Integrated Operations:

Companies has a presence across the entire basmati rice value chain, which includes, procurement, storage, milling, sorting, packaging, branding and distribution. Such integration provides company with several competitive advantages and allows them to benefit from economies


- Business is working capital intensive and insufficient cash flows or inability to borrow funds to meet working capital requirements may materially adversely impact company's business and operations.

- Non-availability and higher cost of Basmati paddy could adversely affect growth plans and business

- Any decrease in the market price of Basmati rice between purchasing basmati paddy and selling Basmati rice may adversely affect company's financial condition.

- The Government of India may impose export duties or other export restrictions related to company's business, which could adversely impact business and financials.


Company has shown strong financial performance this year with improving organic product mix in the revenue. The issue has been offered at a price band of Rs 83-85 per equity share. At the upper price band of Rs 85, the stock is available at adjusted P/E of 15.9 x its FY17 EPS of Rs 5.33 (adjusted for equity shares outstanding after the issue). We have "3 star" rating for the issue.

Source: Equity Bulls

Click here to send ur comments or to

Other Headlines:

Mindspace Business Parks REIT IPO to open on July 27, 2020

Rossari Biotech Limited IPO subscription on Day 1

Specialty Chemicals Manufacturer, Rossari's IPO to open on July 13, 2020

Home First Finance Company gets SEBI approval to float IPO

Rossari Biotech receives SEBI approval for IPO

Mukesh Trends Lifestyle IPO gets SEBI Nod

Casual Dining Giant, Barbeque Nation refiles for IPO

ICL Organic IPO Oversubscribed by 2.92 Times on Final Day of Bidding

ICL Organic Dairy Product's IPO extended for 3 more days

ICL Organic Dairy Product's IPO opens today

Tranway Technologies IPO oversubscribed by 1.88 times on the final day of bidding

Tranway Technologies' IPO opens today

ESAF Small Finance Bank files DRHP for its IPO

Route Mobile gets SEBI nod for Rs 600 cr IPO

Prince Pipes and Fittings Ltd to list on December 30, 2019

Subscribe to Ujjivan Small Finance Bank IPO - Angel Broking

Ujjivan SFB's IPO to open on Monday, December 02, 2019 with Price Band of Rs 36 - 37 per Equity Share each of Face Value of Rs 10 each

IRCTC shares to list on Monday - October 14, 2019

IRCTC'S IPO to open on Monday, September 30, 2019 with Price Band of Rs. 315 - Rs. 320 per share

Alpahlogic Techsys IPO oversubscribed 1.18 times on the final day of bidding

Alphalogic Techsys IPO receives overwhelming response, oversubscribed on second day of bidding

Start-up IPO Alpahlogic Techsys subscribed 64% On the First day of bidding

India's First Start-up IPO Opens today

Alphalogic Techsys IPO now to open in Aug 26th, 2019

Alphalogic Techsys Limited IPO to open on August 23, 2019

Alphalogic Techsys Limited to be the First Company to be Listed on BSE Startup Platform

Ujjivan Small Finance Bank Ltd files DRHP with SEBI for IPO

Global solar EPC major Sterling and Wilson Solar's Rs 3,125 cr IPO opens on August 6, 2019

Tamil Nadu - based Annai Infra Developers Ltd. gets SEBI approval to float IPO

Maharashtra Finance Minister Unveils DRHP of Alphalogic Techsys Limited for Rolling Out its IPO

K.P.R. Agrochem IPO withdrawn: Angel Broking

Shyam Steel Industries Limited files DRHP for IPO

White Organic Retail Ltd IPO opens on BSE SME platform

TN-based Annai Infra Developers Limited files document for IPO float

Rail Vikas Nigam Limited's IPO to open on Friday, March 29, 2019

Humming Bird Education IPO fully subscribed

Humming Bird Education IPO Opens on March 15

MSTC Limited's IPO to open on Wednesday, March 13, 2019

Anmol India Ltd IPO fully subscribed on Day 3

KPI Global Infrastructure's Rs. 40 crore mops subscription of Rs. 436 Crore

Initial Public Offer: Garden Reach Shipbuilders & Engineers - Kotak

Initial Public Offer: Dinesh Engineers Ltd - Kotak

Subscription for Kritika Wires Ltd IPO open

Garden Reach Shipbuilders & Engineers Ltd IPO extended, price band revised

IPO of Spectrum Electrical Industries Limited Opens on September 17, 2018

Ahlada Engineers IPO opens for subscription on Sep 11, 2018

Rajshree Polypack Ltd NSE SME IPO to open for subscription on Sep 10, 2018

Marquee investor, Sunil Singhania's Abakkus Growth Fund - 1 invests in Rajshree Polypack Limited as Anchor Investor

Equity shares of CreditAccess Grameen Limited to list on Aug 23, 2018

TCNS Clothing Company Ltd to list on July 30, 2018

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019