Synopsis:
GRM Overseas Ltd is in the focus after the announcement of board meeting to consider proposal of issuing bonus shares.
A small-cap FMCG company gained attention after announcing its upcoming board meeting to consider a proposal for issuing bonus shares. The news triggered a sharp market reaction, with the stock climbing over 4 percent in the day’s trade.
With Market Capitalization of Rs. 2,308.85 crore, GRM Overseas Limited is trading at 375.35, up by 2.35 percent from its previous closing price of Rs. 366.50 per equity share. The stock reached a high of Rs. 382 in today’s trading session.
What’s the News?
The AGM Overseas Ltd company has scheduled a Board meeting for August 20, 2025, at its Panipat office, to consider and approve a proposal to issue bonus shares, subject to the necessary approvals. As a result, the trading window for company securities will be closed to designated individuals from August 13 to August 22, 2025.
Also Read: Smallcap stock crashes after company announces Q1 results
What is a Bonus?
A bonus issue is a business practice in which a business gives its current shareholders free extra shares in accordance with a predetermined ratio as a way of rewarding them. In this instance, the company has decided to issue bonus shares instead of paying out dividends on the profits.
About the Company
GRM Overseas Ltd, founded in 1974, is a leading food FMCG company that mills, processes, and markets branded and unbranded basmati rice in domestic and international markets. It began as a rice manufacturing and trading company and has since evolved into a consumer staples company, exporting to the Middle East, the United Kingdom, and the United States.
It now serves over 42 countries and is India’s third-largest rice exporter. With advanced manufacturing facilities capable of producing 4,40,800 MT of rice per year, GRM provides a diverse portfolio of staples and modern products, ensuring a strong domestic presence and easy consumer access via major retailers worldwide.
The company’s revenue for Q1FY26 has decreased by 11.62 percent year over year from Rs. 370 crore to Rs. 327 crore and increased by 12.37 percent QoQ from Rs. 291 crore. Whereas the net profit saw an incline of 5.56 percent, from Rs. 18 crore to Rs. 19 crore year over year and a decrease of 5 percent from Rs. 20 crore in Q4FY25.
At the movement company is trading at a price-to-earnings (P/E) ratio of 36.2x which is higher than industry average of 20.2x. A return on equity (ROE) of about 16.2 percent and a return on capital employed (ROCE) of about 13.5 percent demonstrate the company’s financial position. Its debt-to-equity ratio stands at 0.86, showing low leverage in the company.
Written By Akshay Sanghavi
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