Shares of this agricultural products company have soared 213% in two months

Shares of GRM Overseas were stuck on the 5% upper circuit at Rs 815.55, also its new lifetime high on BSE on Monday.

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

Over the past year, the stock has climbed 2,054%, versus a 23% rally in the benchmark. In July 2021, the company had issued free shares in a ratio of 2:1, i.e. two free shares for one share held in the company. Subsequently, to improve capital market liquidity, increase the shareholder base, and make shares affordable for small investors, the company had subdivided its shares into lower denominations.

Initially GRM Overseas set up as a rice processing and trading company, it is growing to become a grassroots consumer organization. GRM sells products under its brand names, namely ’10X’, ‘Himalaya River’ and ‘Tanoush’, and also sells through private label arrangements under customer brands. GRM has strived to reach consumers directly with its brands and products in recent years.

GRM Overseas today announced 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 rice categories under the 10X brand through this platform and will gradually launch other products.

Udaan operates in several categories, including Lifestyle, Electronics, Home & Kitchen, Staples, Fruits & Vegetables, FMCG, Pharmaceuticals, Toys and General Merchandise. .

For the first half (April to September) of the financial year 2021-22 (H1FY22), GRM Overseas had reported consolidated net profit more than doubled to Rs 42.77 crore, from Rs 20.97 crore in H1FY21. Operating income increased by 64% to Rs 475 crore from Rs 290 crore. Earnings before interest, taxes, depreciation and amortization (EBITDA) margin improved by 57 basis points to 12.37% from 11.8%.

GRM said it is making increasing efforts to develop its own brand, as it enables 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 own-brand products at European retailers and is focused on expanding sales of own-brand products in new geographies.

The company has acquired a manufacturing facility in Gandhidham, which is close to Mundra Port, provides an opportunity to focus on operationally efficient export-oriented production and helps to increase exports, GRM said. in the FY21 annual report.

Amalia H. Mercado