Sarveshwar Food stock zooms 9% following strategic partnerships with NBFCs

Sarveshwar Food stock has zoomed around 80 percent so far this year, outperforming Nifty's returns of 16 percent.

Shares of agri-food player Sarveshwar Food surged over 9 percent after the company announced that it has initiated strategic partnerships with certain Non-Banking Financial Companies (NBFCs) to enhance financial support for farmers and drive improvements within the agricultural sector.

Under the proposed arrangement, Sarveshwar Food will facilitate the connection between NBFCs and farmers. The financing arrangements will be conducted directly between the NBFCs and the farmers, with no recourse to the company.

Enhanced financial support with these partnerships will offer farmers improved access to funding, including working capital and investments for agricultural infrastructure. Financial resources will be directed towards enhancing infrastructure, such as irrigation systems and storage facilities, to boost productivity and reduce post-harvest losses, Sarveshwar Food said in a BSE filing.

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Farmers will benefit from additional guidance on financial management and technical support to optimize their agricultural practices. "The initiative aims to drive sustainable agricultural practices and ensure long-term stability and growth within the sector," it added.

Sarveshwar Foods is a USFDA-certified company engaged in the business of manufacturing, trading, processing, and marketing of branded and un-branded basmati and non-basmati rice in the domestic and international markets. Its operations are based out of Jammu.

At 10:33 am Sarveshwar Food shares were trading 8 percent higher at Rs 10.47 on the National Stock Exchange (NSE). The stock has zoomed around 80 percent so far this year, outperforming Nifty's returns of 16 percent. The stock has fallen 27 percent in the past 12 months, compared to 28 percent rise in Nifty.

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