Sarveshwar Foods Ltd. (SARVESHWAR) AI Stock Analysis

3 Followers

Sarveshwar Foods Ltd.

(NSE:SARVESHWAR)

Select Model

Rating:55Neutral

Price Target:INR 4.00▲(5.82% Upside)

Action:reiterated

Date:09/09/26

The score is held back primarily by weak and volatile cash generation (negative operating and free cash flow in the latest two years) alongside thin, recently compressed margins. Supporting factors include improved leverage by 2026 and a constructive price trend above major moving averages, with valuation appearing moderate at a ~14.8 P/E.

Positive Factors

Strong multi-year revenue expansionRevenue has more than doubled across five annual periods, demonstrating meaningful expansion in the company’s sales base and market reach. This scale can support broader distribution, better operating leverage, and continued investment in branded and packaged food offerings over the next several quarters.

Negative Factors

Recent negative cash generationBack-to-back years of negative operating and free cash flow indicate that reported profits are not consistently converting into cash. If this pattern persists, the company may face greater financing and liquidity pressure, limiting its ability to fund growth and absorb operational volatility internally.

Sarveshwar Foods Ltd. (SARVESHWAR) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 4.82B
Dividend Yield: ―
Average Volume (3M): 322.54K
Price to Earnings (P/E): 13.9
Beta (1Y): 1.14
Revenue Growth: 16.42%
EPS Growth: -9.13%
Country: India
Employees: 32
Sector: General
Sector Strength: 55
Industry: Packaged Foods

Sarveshwar Foods Ltd. Business Overview & Revenue Model

Company Description

Established in 1890 and headquartered in Jammu, India, Sarveshwar Foods Limited is a prominent player in the country's rice market. The company specializes in the production and distribution of both basmati and non-basmati rice varieties. Its extensi...

How the Company Makes Money

SARVESHWAR primarily makes money by selling rice and related food products across two broad channels: (1) branded, packaged products and (2) bulk/commodity sales. In the branded channel, the company earns revenue by selling packaged rice (and other p...

Sarveshwar Foods Ltd. Financial Statement Overview

Summary

Revenue scaled strongly over multiple years, and leverage improved materially by 2026 (debt-to-equity down to ~0.53x). Offsetting this, profitability is thin and compressed in the latest year (gross margin down to ~7.7%; net margin ~2.4%), and cash generation is a major weakness with negative operating cash flow and free cash flow in both 2025 and 2026, indicating volatile earnings quality and higher liquidity risk.

Income Statement

58Neutral

Balance Sheet

62Positive

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	14.02B	13.46B	11.36B	8.70B	6.89B	6.05B
Gross Profit	1.03B	1.03B	1.17B	816.42M	633.36M	572.50M
EBITDA	659.43M	660.81M	773.16M	3.22B	405.05M	300.44M
Net Income	331.07M	317.89M	269.19M	2.75B	77.90M	33.52M
Balance Sheet
Total Assets	0	10.89B	9.06B	7.91B	5.60B	4.72B
Cash, Cash Equivalents and Short-Term Investments	50.62M	50.62M	43.57M	2.57M	1.93M	3.91M
Total Debt	0	2.52B	3.04B	2.98B	2.93B	2.72B
Total Liabilities	-4.78B	6.11B	6.02B	5.38B	3.47B	3.08B
Stockholders Equity	4.78B	4.77B	3.04B	2.53B	2.14B	1.63B
Cash Flow
Free Cash Flow	71.08M	-884.10M	-262.17M	2.49B	-359.61M	197.00M
Operating Cash Flow	73.22M	-873.20M	-248.82M	2.50B	-357.49M	198.56M
Investing Cash Flow	128.99M	-28.40M	-41.32M	156.84M	-58.36M	-8.07M
Financing Cash Flow	902.62M	925.25M	300.46M	-64.84M	413.51M	-194.09M

Sarveshwar Foods Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price3.78

Price Trends

50DMA3.62Positive

100DMA3.58Positive

200DMA3.66Positive

Market Momentum

MACD0.04Negative

RSI58.45Neutral

STOCH71.95Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SARVESHWAR, the sentiment is Positive. The current price of 3.78 is above the 20-day moving average (MA) of 3.58, above the 50-day MA of 3.62, and above the 200-day MA of 3.66, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 58.45 is Neutral, neither overbought nor oversold. The STOCH value of 71.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SARVESHWAR.

Sarveshwar Foods Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SARVESHWAR against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:GOKULAGRO	81Outperform	INR 67.13B	14.47	―	―	14.83%	58.34%
IN:ROML	56Neutral	INR 676.32M	14.95	―	―	15.31%	-22.36%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:SARVESHWAR	55Neutral	INR 4.75B	13.87	―	―	16.42%	-9.13%
IN:FOODSIN	53Neutral	INR 3.44B	17.86	―	0.64%	-24.46%	-40.40%
IN:GOKUL	53Neutral	INR 3.70B	18.08	―	―	15.39%	27.60%
IN:KRISHIVAL	51Neutral	INR 8.82B	33.88	―	0.10%	―	―

* General Sector Average

Performance Comparison

IN:SARVESHWAR and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SARVESHWAR	Sarveshwar Foods Ltd.	3.78	-1.19	-23.94%
IN:FOODSIN	Foods & Inns Ltd.	46.55	-31.41	-40.29%
IN:GOKUL	Gokul Refoils & Solvent Ltd.	37.59	-2.51	-6.26%
IN:GOKULAGRO	Gokul Agro Resources Ltd.	228.15	31.75	16.17%
IN:KRISHIVAL	Krishival Foods Limited	344.55	-113.57	-24.79%
IN:ROML	Raj Oil Mills Limited	41.40	-9.10	-18.02%

Sarveshwar Foods Ltd. Corporate Events

Sarveshwar Foods Clears Rs 84.55 Crore Warrant Issue and New ESOP Plan

Sep 5, 2026

Sarveshwar Foods Limited’s board has approved a series of governance and capital decisions, including the annual report, AGM arrangements, and re-appointments of key directors, reinforcing continuity in its leadership structure. The company has also...

Sarveshwar Foods Publishes Q1 FY 2026–27 Unaudited Results in Newspapers

Aug 2, 2026

Sarveshwar Foods Ltd. has published its unaudited standalone and consolidated financial results for the quarter ended 30 June 2026 in the Financial Express and Daily Taskeen newspapers. The disclosure covers performance for the first quarter of the 2...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 09, 2026

Sarveshwar Foods Ltd. AI Stock Analysis