Shares of GRM Overseas have been on a roll this year, rising as much as 80 per cent year-to-date (YTD). The stock hit a 52-week high of ₹ 397.60 on July 16 this year after hitting a 52-week low of ₹ 175.95 on January 13.
On Wednesday, October 1, GRM Overseas’ share price rose by over a per cent to an intraday high of ₹363.70. Around 1 pm, the small-cap stock was 1.5 per cent up at ₹363.70.
According to Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, the stock is indicating underlying strength.
Patel underscored that on the momentum front, the RSI has taken support at its 14-day average, coinciding with the 45-50 zone, which often acts as a base during consolidations. Moreover, the daily MACD has generated a bullish crossover, further reinforcing positive momentum in the short term.
“With these technical signals aligning, the stock looks poised for an upward move. In the immediate horizon, we expect the stock to test the ₹380-385 resistance zone, which has been a crucial supply area. On the downside, ₹353-aligned with the trendline support-remains an important level to watch for risk management,” said Patel.
Marquee investors raise stake
GRM Overseas said it is undertaking a strategic realignment of its investor base as marquee strategic investors deepen their stake in the company.
“The promoters have divested a total of 2.65 per cent of GRM Overseas for over ₹58 crore in a recent secondary transaction, with stake increased by Nikhil Vora, ace investor Madhusudan Kela’s Singularity Ventures, RG Family Trust and Jackson Group,” said the company.
According to the company, Vora’s stake rose from 0.33 per cent to 0.85 per cent, Jakson Group’s stake expanded from 2.40 per cent to 3.44 per cent, and Singularity Equity Fund’s holding grew from 2.20 per cent to 3.35 per cent as they completed a stake purchase from the promoters.
GRM Overseas said its consolidated net profit for the June quarter of the current financial year rose nearly 6 per cent year-on-year (YoY) to ₹19.09 crore, while the company’s revenue for the quarter stood at ₹334.43 crore.
GRM Overseas’ subsidiary GRM Foodkraft Private Limited reported revenue from operations at ₹539 crore for FY25 compared to ₹257 crore in FY24.
This development comes amid a buoyant backdrop for India’s rice-export sector.
India remains the world’s largest rice exporter, with shipments of around 22 million tonnes and a value of $11.4 billion in 2023 (roughly 40 per cent of global trade).
According to the company, the 2024-25 period saw a 20 per cent year-on-year rise in rice exports, helping lift overall agricultural and processed-food exports to $25.14 billion, even as overall exports grew modestly. Recent export restrictions on certain varieties have influenced global supply and pricing, but demand for Indian rice remains robust.