6,800 per cent returns and promoters & FIIs increase stake: This rice-selling company bags new order worth Rs 465 million from Sultanate of Oman

The stock gave multibagger returns of 970 per cent in 5 years and a whopping 6,800 per cent over a decade.

Today, the shares of GRM Overseas Ltd gained 10.65 per cent to an intraday high of Rs 157.35 per share from its previous closing of Rs 142.20. The stock’s 52-week high is Rs 231.35 while its 52-week low is Rs 114.15. The shares of the company saw a spurt in volume by more than 6 times on BSE.

GRM Overseas Limited (GRM) has received its first order from the Ministry of Agricultural, Fisheries Wealth & Water Resources, Sultanate of Oman, to supply 4,500 MT of Premium basmati rice. The order is worth Rs 465 million. The Government entities in the MENA region open a significant target market for GRM Overseas with an approximate total size of 7,00,000 MT + import of basmati rice.

MENA region is the largest importer of basmati rice, having a lion’s share of 78 per cent of the total exports from India in FY23, while Europe contributes 6.9 per cent and USA + Canada contributes 6.6 per cent (FY23). GRM Overseas has positioned itself strategically, as 95 per cent of its export business is to the MENA region and has established itself as among the top 5 basmati rice exporters in the MENA region.

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GRM Overseas Ltd is primarily engaged in the business of milling, processing and marketing of branded and non-branded basmati rice in the domestic and overseas market. The company has a market cap of Rs 1,166 crore. The company has a good return on equity (ROE) track record: a 3-year ROE of 32.4 per cent and has been maintaining a healthy dividend payout of 32.3 per cent. In the December quarter (Q3FY24), FIIs bought 45,006 shares of this company being a 0.08 per cent stake.

The company reported positive numbers in its Quarterly Results (Q3FY24) and nine-month results (9MFY24) for the fiscal year 2024. According to the quarterly results, net sales increased by 87.8 per cent to Rs 895 crore, operating profit increased by 84.1 per cent to Rs 26.90 crore and net profit skyrocketed 134 per cent to Rs 15.49 crore in Q3FY24 compared to Q2FY24. In its nine-month results, the company reported net sales of Rs 906.51 crore and net profit of Rs 39.55 crore in 9MFY24 compared to net sales of Rs 945.84 crore and net profit of Rs 51.58 crore in 9MFY23.

As of March 2024, the promoters of the company 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 stock gave multibagger returns of 970 per cent in 5 years and a whopping 6,800 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.