1:10 Stock Split, 2:1 Bonus Issue: Small Cap FMCG Stock Hits Back-To-Back Upper Circuit

Small cap stock operating in FMCG sector, Sarveshwar Foods Ltd witnessed a strong rally in past two days and hit back-to-back upper circuit on Wednesday (August 16, 2023) and Thursday (August 17, 2023). The company also declared its quarterly results and announced a jump of 61% in its net profit for the June quarter. Sarveshwar Foods shares rallied 72% in last 1-month and gained 80% in last 3-months. Earlier this month on August 2, the company announced bonus share in the ratio of 2:1 and sub-division of equity share in the proportion of 1:10. Check details below:

Sarveshwar Foods Q1 Result: The board of directors of the company on August 16, 2023 reported a 61% jump in its net profit on quarter-on-quarter (QoQ) basis to Rs 2.91 crore for the quarter ended June 30, 2023. It registered a net profit of Rs 1.81 crore for the March 2023 quarter. Meanwhile, the company's net profit bettered on year-on-year (YoY) basis from Rs 2.8 crore in year ago period, according to its BSE filing. The company's revenue from operations witnessed a rally of 45% on QoQ basis to Rs 187.68 crore for the quarter ended June 30, 2023. Earlier, it announced its revenue at Rs 129.81 crore for the quarter ended March 31, 2023. Its revenue was announced at Rs 197 crore in the year ago period.

Sarveshwar Foods Stock Performance & Return: Current market price of Sarveshwar Foods share is Rs 127.05 apiece with intraday gain of 5.00% in morning trade till 9:33 am. Its 52-week high price is Rs 138.40 apiece and 52-week low price is Rs 62.60 apiece, respectively. It has a market capitalisation of Rs 388.74 crore. The stock hit upper circuit on August 17, August 16, August 11, and August 10. Sarveshwar Foods shares soared 72% in last 1-month only, jumped 80% in last 3-months, and gained 49% in last 6-months.

Sarveshwar Foods Announced Bonus Share & Stock Split: According to the BSE filing of the company dated August 2, 2023, "the proposal of issuance of Bonus equity shares to the securityholders of the Company in the ration of 2:1 i.e. 2 (Two) Equity Shares for every 1 (One) Equity Shares having a face value of Re. 1/- (considering the post sub-division/split of face value of equity shares) held by the Eligible securityholders of the Company as on the record date, subject to the approval of shareholders to be obtained in the ensuing extra-ordinary general meeting and such other approvals as may be required. In this regard, the record date for such bonus issue shall be intimated to the stock exchanges in due course."

It also announced sub-division/split of company's 1 (one) Equity Shares of the Company having a face value of Rs. 10/- each into 10 (Ten) Equity shares of the company having face value of Re. 1 each, subject to the approval of shareholders to be obtained in the ensuing extra-ordinary general meeting and such other approvals as may be required. In this regard, the record date for such division/ split shall be intimated to the stock exchanges in due course."

Disclaimer: The stock highlights the bonus issue and stock split and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for ay losses. Please consult a professional advisor.