Sarveshwar Foods Rally 10% To Record High After Budget Announcement; Here’s Why

FMCG company Sarveshwar Foods opened higher today and witnessed strong buying interest in the Friday session which resulted in the stock hitting a record high after the Budget announcement. The scrip opened on the BSE at Rs 7.55 apiece and rallied to a record high of Rs 8.14 while logging a gain of 10%.

The spike in the stock price took place after Sarveshwar Foods Limited opened two more SFL-Choupals (Procurement Facilitation Centres) in Kulgam and Doda to directly purchase authentic Himalayan foods from farmers, including walnuts, rajma, apples, black morels (gucchi), and kala jeera.

Sarveshwar Foods Limited announced on Wednesday, January 31st, that it is enhancing its procurement channel further by establishing two additional SFL Chaupals (Procurement Facilitation Centres). These centers will enable the company to purchase authentic Himalayan delicious foods such as walnuts, apple, rajma, black morels (gucchi), and kala jeera directly from farmers in Kulgam and Doda.

With the addition of these additional outlets, Sarveshwar Food currently runs 12 SFL Chaupals-seven in Jammu and five in Kashmir-at various places around the Jammu and Kashmir Region.

"SFL Choupals-Sarveshwar Food's Procurement Facilitation Centre are established with 2 objectives: first, to speed up and smooth procurement by eliminating unnecessary leakages, delays, and logistical challenges, and second, to engage with farmers from the start of the crop cycle, assist them at every stage of cultivation, and provide full patronage," said Sarveshwar Foods in a stock exchange filing.

Mr. Rohit Gupta, Chairman Sarveshwar Group, "I am delighted to announce the opening of 2 more SFL Choupals and Kulgam and Doda. These SFL Choupals have been a grand success so far and achieved their objectives very well, as with the presence of these SFL Choupals at the door step of the farmers, farmers have been able to raise productivity, improve quality, manage risk, and earn better. On the other hand, these SFL Choupals have, by creating a more efficient procurement channel, smoothen the procurement process to a large extent, reduced transaction costs, and improved overall supply chain."

SFL Choupals allow easy access to current, relevant, real-time information on price discovery, agricultural expertise, best practices, etc. Through SFL-Choupals, Sarveshwar Food Limited anticipates systematically applying its expertise to address the range of problems that farmers face and offer a 360-degree platform for intervention to start a positive feedback loop that will eventually guarantee a steady supply of genuine, high-quality farm products to the company. This cycle will result in better farm productivity, higher income, and higher capacity for risk management by farmers.

"Sarveshwar Foods is bullish but also very overbought on the Daily charts with next resistance at 9. Investors should book profits at current levels as a Daily close below support of 7.25 could lead to a fall till 4.9 in the near term," said AR Ramachandran from Tips2trades.