6,700 Per Cent Multibagger Returns & Promoters Increase Stake: Rice Manufacturing Stock Gains over 5 Per Cent to an Intraday High of Rs 204.2 per share on July 22

The stock gave multibagger returns of 1,560 per cent in 5 years and a whopping 6,700 per cent over a decade.

Today, shares of GRM Overseas Ltd gained over 5 per cent to Rs 204.2 per share from its previous closing of Rs 193.65. 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 1,200 crore. The company has not made any significant announcements of late. Hence, the rally in the share price could be driven purely by the market forces. 

Earlier, in a move to strengthen its presence in the Indian packaged food market, GRM Overseas, a leading basmati rice exporter and FMCG player, launched "Gulistan Kachi Ghani Mustard Oil" under its 10X brand. This new product, available nationwide in 1L and 5L packs, caters to the growing demand for unrefined mustard oil perceived to have health benefits, and aligns with GRM Overseas' strategy to expand its subsidiary GRM Foodkraft's product portfolio. To support this domestic expansion and explore acquisitions in the food FMCG sector, GRM Overseas earlier secured Rs 136.5 crore in funding. Additionally, the company signed a two-year exclusive deal with DIPLOMAT GEORGIA to distribute 'Tanoush' basmati rice in Georgia and neighboring regions and secured a record Rs 600 million order from Yemen's largest basmati rice importer, solidifying its position in the Middle East.

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.

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 1,560 per cent in 5 years and a whopping 6,700 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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