Shares of this agricultural products company has zoomed 213% in two months

GRM Overseas was locked at the 5 per cent upper circuit at Rs 815.55, also its new high in trades on Monday.

Shares of GRM Overseas were locked at the 5 per cent upper circuit at Rs 815.55, also its new life-time high on the BSE on Monday.

The company is one of India’s leading basmati rice exporters and a growing consumer staples player, and  the stock price has appreciated by 213 per cent in just two months, from a level of Rs 260.20 on November 10, 2021 after its stock split from Rs 10 to Rs 2. In comparison, the S&P BSE Sensex was down 0.35 per cent during the same period.

In the past one year, the stock has zoomed a whopping 2,054 per cent, as against a 23 per cent rally in the benchmark index. In July 2021, the company had issued bonus shares in the ratio of 2:1 i.e. two bonus shares for every one equity share held in the company. Thereafter, to enhance the liquidity in the capital market, to increase shareholders base and to make the shares affordable to small investors, the company had sub-divided its equity shares in lower denomination.

Initially GRM Overseas set-up as a rice processing and trading house, it is growing to become a consumer staples organisation. GRM sells products under its brands, namely “10X”, “Himalaya River” & “Tanoush,” and also sells through private label arrangements under customers’ brands. GRM has endeavoured to reach consumers directly with its brands and products in recent years.

GRM Overseas today announced its subsidiary; GRM Foodkraft Pvt. Ltd (GFK) 10X Rice brand will be available on Udaan, India’s largest Business-to-Business (B2B) e-Commerce platform. The company will initially begin selling its various categories of rice under 10X Brand through this platform and progressively introduce other products.

Udaan has operations across categories including lifestyle, electronics, home & kitchen, staples, fruits & vegetables, FMCG, pharma, toys and general merchandise.

For the first half (April to September) of the financial year 2021-22 (H1FY22), GRM Overseas had reported more-than-doubled consolidated net profit at Rs 42.77 crore, against Rs 20.97 crore in H1FY21. Revenue from operations grew 64 per cent to Rs 475 crore from Rs 290 crore. Earnings before interest, taxes, depreciation, and amortization (ebitda) margin improved 57 bps to 12.37 per cent from 11.8 per cent.

GRM said it is making increasing efforts towards its own brand development, as it allows for differentiation in a rice industry, makes way for greater market acceptance, and imparts ability to develop a pricing premium in the long term. The company has launched own branded products in European retailers and is focused on expanding sales of own branded products to newer geographies.

The company had acquired a manufacturing facility in Gandhidham, which is in proximity to the Mundra port, provides opportunity to focus on operationally efficient export oriented production and helps to augment exports, GRM said in FY21 annual report.