Shares of GRM Overseas were stuck on the upper circuit 5% at Rs 815.55, also its new lifetime record on BSE on Monday.
The company is one of India’s leading exporters of basmati rice and an increasingly important player in consumer staples, and the share price has appreciated 213% in just two months, from a level of Rs 260.20 on Nov 10, 2021 after its shares split from Rs 10 to Rs 2. In comparison, the S&P BSE Sensex fell 0.35% during the same period.
Over the past year, the stock has climbed 2,054%, compared to a 23% gain in the benchmark. In July 2021, the company had issued free shares in a ratio of 2: 1, i.e. two free shares for each capital share held in the company. Subsequently, in order to improve the liquidity of the capital market, increase the shareholder base and make stocks affordable for small investors, the company subdivided its shares into lower denominations.
Initially GRM Overseas was a rice processing and trading company, it is emerging as a consumer staples organization. GRM sells products under its brands, namely “10X”, “Himalaya River” and “Tanoush”, and also sells through private label agreements under the brands of customers. GRM has made efforts to reach consumers directly with its brands and products in recent years.
GRM Overseas announced today its subsidiary; GRM Foodkraft Pvt. Ltd (GFK) The 10X Rice brand will be available on Udaan, India’s largest business-to-business (B2B) e-commerce platform. The company will initially start selling its various categories of rice under the 10X brand through this platform and will gradually launch other products.
Udaan operates in categories such as Lifestyle, Electronics, Home and Kitchen, Commodities, Fruits and Vegetables, FMCG, Pharmaceuticals, Toys and General Merchandise. .
For the first half (April to September) of fiscal year 2021-22 (S1FY22), GRM Overseas had reported consolidated net profit more than doubled to Rs 42.77 crore, compared to Rs 20.97 crore in S1FY21. Operating income rose 64% to Rs 475 crore from Rs 290 crore. Earnings before interest, taxes, depreciation and amortization (EBITDA) improved 57 basis points to 12.37 percent from 11.8 percent.
GRM said it is making increased efforts to develop its own brand, as this allows differentiation in a rice industry, paves the way for greater market acceptance and gives the ability to develop a long-term price premium. . The company has launched its own brand products at European retailers and is focused on expanding sales of its own brand products into new geographies.
The company had acquired a manufacturing plant in Gandhidham, which is close to the port of Mundra, provides the opportunity to focus on operationally efficient export-oriented production and helps increase exports, said GRM in the FY21 annual report.