Sanwaria Consumer: I already made 200% gain. Expecting more multibagger gains

[siddharth]

I have had very good luck with Sanwaria Consumer, the FMCG penny stock.

I bought the stock at Rs. 0.9 in late March 2020.

Today, in mid-May, the stock is at Rs. 2.70.

This means that I have made a gain of 200% in just a few months.

This shows the power of penny stocks where the risk is low and the reward is high.



Is sanwaria consumer a multibagger stock?

Now, the question is whether Sanwaria Consumer can still deliver multibagger gains even from this stage.

IMHO the answer is yes.

Sanwaria consumer is engaged in the manufacturing and trading of Soya Seed and their products, Crude Edible Oil, De-oiled Cake, Crude/refined Edible Oil, Bas-mati Rice, Rice Products and Other Foods Grains and Food Products and Retailing of various Products.

All of these products have an infinite demand from customers. So, I think the stock will keep growing from strength to strength so long as the management handles the business properly and does not do any mischief.

It should be remembered that in January 2018, Sanwaria consumer was trading at a a high of Rs. 33.4.

Therefore, it has already given multibagger returns to investors in the past.

Imagine if the stock goes back to the level of Rs. 30. What the gains will be if the investors buy the stock at the CMP of Rs. 2.7.

Should I invest sanwaria consumer?

Each investor will have to take the call himself based on his own perception of risk and reward.

I am personally invested in the stock from lower levels and am holding it for a target price of Rs. 10 in the next 12 months.

Also, the investment is 5% of my total capital. SO, I am playing it safe.

[Saurabh]

Great pick. Sanvaria Cons is up 3.7% when Nifty is down heavy

[Shivarama Karkala]

Key Investment Highlights why Sanwaria Consumer is a good penny stock to buy now.

Presence in a large and fast growing segment:

1. The Company is amongst the top food producers of soya/Paddy/Wheat products in India.

2. The Group has sustained exposure in trading of food grains and pulses apart from soyabean products, wheat products, rice , oils and other food products.

Location Advantage:

3. The company’s operations in the heartland of the soya & Paddy & wheat belt of India gives it a major locational advantage reducing the logistics costs substantially.

4. The plants are located in Madhya Pradesh which is a power surplus state and hence the Company has access to cheap and uninterrupted power supply.

5. The region has good access to skilled and semi skilled labour.

Strong procurement capabilities:

6. The Promoters of the Company have been in the business for over 45 years, enabling it to establish a very strong and efficient procurement system.

7. It has strong relationship with farmers with 80 direct procurement centers across Madhya Pradesh wherein the farmers bring their crop and the company purchases directly from farmers.

8. The Company also procures goods from international markets to meet its requirements of soya oil.