Rice & Wheat Manufacturing Company: Acuité Ratings & Research Limited Reaffirmed Credit Rating as ‘A-’, Stable Outlook
The stock gave multibagger returns of 3,030 per cent in 5 years and a whopping 7,200 per cent over a decade.
Acuité Ratings & Research Limited has reaffirmed GRM Overseas Limited's long-term credit rating at 'ACUITE A-' with a 'Stable' outlook, and the short-term rating at 'ACUITE A2+'. This reflects a healthy financial risk profile, supported by a strong liquidity position. GRM Overseas has demonstrated improved revenue, reaching Rs 1056 crore in 9MFY2025, following a previous decline. This revenue growth, along with a stronger liquidity position, highlights the company's solid financial standing. The company's financial strength is further evidenced by its improved net worth, which stood at Rs 429.74 crore as of March 31, 2024, compared to Rs 372.04 crore the previous year.
The ratings also acknowledge the challenges GRM Overseas faces, including its working capital-intensive operations and exposure to agro-climatic risks. Additionally, the company remains susceptible to external factors such as economic conditions in export markets and fluctuations in foreign exchange rates. These challenges are important considerations in the overall assessment of the company's creditworthiness.
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About the Company
Founded in 1974 as a rice trader, GRM has evolved into a global consumer staples company, exporting to 42 countries and ranking among India's top rice exporters. With three processing units and extensive warehousing, they produce and distribute branded and private label rice products, ensuring quality through stringent international standards and broad retail availability.
According to Quarterly Results, the company reported net sales of Rs 371.24 crore in Q3FY25 compared to net sales of Rs 315.49 crore in Q2FY25, an increase of 18 per cent. The net profit increased by 47 per cent to Rs 13.54 crore in Q3FY25 compared to Q2FY25. In its nine-month results, the net sales increased by 17 per cent to Rs 1,056.81 crore and net profit increased by 3 per cent to Rs 40.76 crore in 9MFY25 compared to 9MFY24.
As per the exchange filing, the promoters of the company-Mr Atul Garg, Mrs Mamta Garg and Mr Hukam Chand Garg bought 42,000 shares via the open market in March 2025. The shares of the company have an ROE of 18 per cent and an ROCE of 13 per cent. The stock gave multibagger returns of 3,030 per cent in 5 years and a whopping 7,200 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.