GRM Overseas' shares were trading at Rs 815.55 on Monday, a new life-time high on the BSE. The company is among India's largest basmati rice exporters and an increasing customer staples player, with a share price that has risen by 213 percent in just two months, from a low of Rs 260.20 on November 10, 2021, to a high of Rs 260.20 on November 10, 2021, following a share split from Rs 10 to Rs 2. During the same time frame, the S&P BSE Sensex was down 0.35 percent.
The share has increased by 2,054 percent in the last year, compared to a 23% increase in the benchmark index. In July 2021, the firm issued bonus shares in a 2:1 ratio, meaning that for every one equity share owned in the company, two bonus shares were granted. Following that, the firm subdivided its equity shares in lesser denominations to promote liquidity in the capital market, expand the shareholder base, and make the shares more accessible to small investors.
GRM Overseas began as a rice processing and trading company, but it has evolved into a consumer staples company. GRM distributes items under its own names, such as "10X," "Himalaya River," and "Tanoush," as well as under clients' brands through private label agreements. In recent years, GRM has made an effort to reach out to consumers directly with its brands and goods.
GRM Overseas announced today that its subsidiary, GRM Foodkraft Pvt. Ltd (GFK), would make its 10X Rice brand accessible on Udaan, India's leading B2B e-Commerce platform. This platform will first be used to market the company's many types of rice under the 10X Brand, with more items being added as time goes on.
Lifestyle, electronics, home & kitchen, basics, fruits & vegetables, FMCG, medicine, toys, and general products are among the categories in which Udaan operates.
GRM Overseas reported a more than doubled consolidated net profit of Rs 42.77 crore for the first half of the financial year 2021-22 (H1FY22), compared to Rs 20.97 crore in H1FY21. Operational revenue increased by 64% to Rs 475 crore from Rs 290 crore. The ebitda margin (earnings before interest, taxes, depreciation, and amortisation) increased by 57 basis points to 12.37 percent from 11.8 percent.
GRM said it is putting more effort into developing its own brand since it provides for distinction in the rice sector, more market acceptability, and the possibility to establish a pricing premium over time. Own-brand items have been offered in European stores, and the corporation is focusing on growing sales of own-brand products to fresh areas.
According to GRM's FY21 annual report, the firm purchased a manufacturing plant in Gandhidham, which is close to the Mundra port and allows the company to focus on operationally effective export-oriented production and helps to increase exports.
