8,300 per cent returns & FIIs bought 45,006 shares: Multibagger small-cap stock in green after company reported a 134 per cent jump in net profit; scrip trades at high ROE

The stock gave multibagger returns of 337 per cent in 3 years, 1,200 per cent in 5 years and a whopping 8,300 per cent over a decade.

Today, shares of GRM Overseas Ltd gained 2.16 per cent to Rs 193.70 per share with an intraday high of Rs 202.35 and an intraday low of Rs 193.70. The stock’s 52-week high is Rs 352.10 while its 52-week low is Rs 159.05.

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 382.48 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.

Earlier, GRM Overseas Ltd sold a stake of more than 4 per cent in its subsidiary GRM Foodkraft Pvt Ltd (Foodkraft) to Sauce.vc (Sauce), a consumer-focused venture capital fund. Sauce also acquired an additional 1 per cent stake from other shareholders. Foodkraft sells a variety of basmati rice, wheat flour, and other food products under the brands 10X Zarda King XXL and 10X Shakti. It also offers ready-to-cook product kits such as Hyderabadi Biryani and One Pot Moradabadi Biryani. The company has a presence in online and offline retail as well as the D2C segment, with over 52 distribution centres serving more than 160,000 Kirana stores.

About Sauce: The company was founded by Manu Chandra and is a consumer-focused venture capital fund, partnering with brands in F&B, personal care, lifestyle, etc. They engage closely with founders through a high-engagement model and maintain a focused portfolio strategy. They have previously backed market disruptors like Mokobara, XYXX, Innovist, Hocco Ice Creams and The Whole Truth Foods from the inception stage.

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 stock gave multibagger returns of 337 per cent in 3 years, 1,200 per cent in 5 years and a whopping 8,300 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.