5,000 Per Cent Multibagger Returns: Rice Manufacturing Stock in Focus as Company Launches ‘10X Gulistan’ Kachi Ghani Mustard Oil
As of March 2024, the company's promoters increased their stake to 72.16 per cent and FIIs increased their stake to 0.26 per cent compared to 71.72 per cent and 0.07 per cent in March 2023.
GRM Overseas, a prominent exporter of Indian basmati rice and a leading FMCG player has introduced "Gulistan Kachi Ghani Mustard Oil" as part of its 10X brand lineup. Available in 1L bottles and 5L jars, the new mustard oil will be accessible nationwide. This launch aligns with GRM Overseas' strategy to expand the product portfolio of its subsidiary, GRM Foodkraft Private Limited. The branded mustard oil market in India is projected to experience substantial growth, fueled by a rising preference for unrefined oils due to perceived health benefits. This trend is driving demand across both urban and rural areas.
To comply with regulatory requirements, GRM Overseas has disclosed essential product details. The "Gulistan Kachi Ghani Mustard Oil" was launched on July 15, 2024, and is categorized as a staple food item. Exclusively targeted at the domestic market, this product is expected to contribute to the company's growth within the packaged food sector.
Earlier, the company secured Rs 136.5 crore in funding through convertible warrants issued to 33 investors, including promoters and non-promoters, to expand its "10X" brand domestically, enhance operational efficiency, and explore strategic acquisitions within the food FMCG sector. Additionally, the company has formed a two-year exclusive partnership with DIPLOMAT GEORGIA to distribute its 'Tanoush' basmati rice in Georgia across 1 kg, 5 kg, and 20 kg pack sizes, leveraging Diplomat's regional presence in Israel, Cyprus, and New Zealand to expand GRM's reach. Furthermore, GRM Overseas has secured a record Rs 600 million order from Bin Awadh Alnaqeeb Group, Yemen's largest importer of Indian basmati rice, solidifying its position in the Middle Eastern market.
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About the Company
GRM Overseas Ltd, a leading Indian company in the basmati rice industry, mills, processes, and markets both branded (like their 10X brand) and non-branded basmati rice for both domestic consumption and international export. Their product range goes beyond just basmati rice, also including atta flour (Shakti Chakki Fresh) and ready-to-cook biryani kits in various regional styles like Moradabadi, Hyderabadi, and Lucknowi.
Today, shares of GRM Overseas Ltd gained 2.48 per cent to Rs 212.70 per share from its previous closing of Rs 207.55. The stock’s 52-week high is Rs 231.35 while its 52-week low is Rs 114.15. The company has a market cap of over Rs 1,250 crore.
As of March 2024, the company's promoters increased their stake to 72.16 per cent and FIIs increased their stake to 0.26 per cent compared to 71.72 per cent and 0.07 per cent in March 2023. The shares of the company have an ROE of 21 per cent and an ROCE of 15 per cent. The stock gave multibagger returns of 1,520 per cent in 5 years and a whopping 5,000 per cent over a decade. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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