1. At a Glance – Old Money, New Drama, Mixed Signals
Shervani Industrial Syndicate Ltd is that one uncle in every Indian family who has been around since Independence, owns a lot of land, occasionally makes biscuits, and still manages to confuse everyone at the dinner table. Incorporated in 1948, this Prayagraj-based real estate + job-work biscuit hybrid currently sits at a market cap of ₹92.4 crore, with a share price of ₹359, down ~10.6% in 3 months and ~25.5% over 1 year, politely reminding shareholders that nostalgia is not a business model.
The stock trades at a P/E of 35.5, which is impressive until you realise the ROCE is just 1.51% and ROE is 2.96%, numbers so low they need motivation quotes. Latest quarterly numbers (Q2 FY26, Sep 2025) show sales of ₹3.35 crore and a net loss of ₹0.27 crore, with EPS at -₹1.05, proving that volatility is the only consistent feature here.
Balance sheet-wise, total assets stand tall at ₹299.41 crore, borrowings have climbed to ₹56.62 crore, and promoter holding is a solid 62.07% with zero pledging. Dividend yield exists at 0.84%, like a polite apology rather than a reward.
In short: land-rich, cash-flow moody, earnings unpredictable, and valuation confusing enough to deserve its own Netflix docu-series.
2. Introduction – 77 Years Young, Still Figuring Things Out
Shervani Industrial Syndicate Ltd is not a startup. It’s not even a turnaround story. It’s more like a long-running Indian TV serial—multiple plotlines, sudden twists, some episodes brilliant, some fillers, and the audience constantly asking, “Ab yeh kya chal raha hai?”
Originally famous for Geep torches and dry cell batteries, Shervani exited the flashlight business and walked into real estate, because when in doubt, Indian promoters always choose land. The company’s first real estate project, Sterling Apartments in Prayagraj, marked the beginning of this transformation. Since then, Shervani has been playing Monopoly with real land—plots, group housing, colonies, and ambitious add-ons like hospitals and schools.
Parallelly, it also runs a biscuit manufacturing operation via its wholly owned subsidiary Farco Foods Pvt Ltd, producing biscuits on a job-work basis for Priya Gold, clocking ~6,016 MT production in FY23. No branding risk, no FMCG glamour, just steady factory work—like the introvert cousin who quietly pays bills.
But here’s the
issue: revenues are lumpy, profits swing wildly, and quarterly numbers resemble a heart rate monitor during a treadmill stress test. One quarter gives ₹78 EPS, another gives negative EPS, and investors are left wondering whether to look at annual reports or astrology charts.
So the real question: is Shervani a patient land-monetisation story, or a balance sheet museum with occasional fireworks?
3. Business Model – WTF Do They Even Do?
Let’s simplify Shervani’s business model before everyone gets a headache.
Real Estate – The Main Character
This is the star of the show. Shervani develops its own land bank in Prayagraj, primarily under the Shervani Legacy umbrella. This is not just one building—it’s a full-blown gated colony approved by the Prayagraj Development Authority, featuring:
- Residential plots
- Commercial areas
- Group housing
- School land
- ~50% open area (parks, playgrounds, rainwater pond, wide roads)
Within this ecosystem:
- Victory Tower: A 13-storey, two-tower group housing project with 520 units (2BHK, 3BHK, 4BHK), launched in FY23.
- Naman Homes: Completed 6 months ahead of schedule (rare real estate W).
- The Crescent: Currently under construction and planned for early completion.
Revenue from real estate comes mainly from sale of plots and flats, which formed ~77% of FY23 revenue.
Biscuits – The Supporting Actor
Through Farco Foods Pvt Ltd, Shervani manufactures biscuits only on job-work basis for Surya Foods’ Priya Gold brand. No marketing spend, no inventory risk, no FMCG influencer reels—just manufacturing fees. This contributed ~18% of FY23 revenue.
Other Stuff
- Sale of livestock (~1%)
- Other income (~4%),
