5,200 per cent returns: Multibagger FMCG stock gains over 10 per cent today; Recently company acquired single largest stake in Virat Kohli–backed RAGE COFFEE
The stock gave multibagger returns of 2,240 per cent in 5 years and a whopping 5,200 per cent over a decade.
On Monday, the shares of GRM Overseas Ltd jumped over 10 per cent to an intraday high of Rs 287 per share from its previous closing of Rs 255.60. The stock’s 52-week high is Rs 288.60 while its 52-week low is Rs 114.15. The company has a market cap of over Rs 1,600 crore. At the closing bell, shares of the company were trading at Rs 277.25 per share, up 8.47 per cent with a spurt in volume by more than 5 times on BSE.
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.
GRM Overseas Limited, a prominent player in India's FMCG sector, has made a significant strategic investment in Swmabhan Commerce Pvt Ltd, the parent company of the popular coffee brand, Rage Coffee backed by Cricketer Virat Kholi. Through this acquisition, GRM Overseas aims to expand its presence in the fast-growing Indian coffee market. Rage Coffee, known for its innovative products and strong brand recognition, has a robust omnichannel distribution network and a loyal customer base.
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The acquisition aligns with GRM Overseas' broader strategy under its newly launched platform, 10X Ventures. This investment marks a major step forward for GRM Overseas in diversifying its portfolio and strengthening its position in the FMCG space. By leveraging its vast distribution network, GRM Overseas plans to expand Rage Coffee's presence both domestically and internationally, potentially supplying coffee beans and soluble powder to existing clients and opening coffee shops under the brand. With this strategic move, GRM Overseas is well-positioned to cater to the evolving preferences of new-age consumers and capitalize on the growing demand for premium coffee products in India.
As of June 2024, the company's promoters bought 73,000 shares and increased their stake to 72.29 per cent and FIIs increased their stake to 0.67 per cent compared to 72.16 per cent and 0.26 per cent, respectively in March 2024. 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 2,240 per cent in 5 years and a whopping 5,200 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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