Synopsis:
GRM Overseas Limited has postponed the scheduled board meeting on the proposed bonus issue.
The shares of this FMCG stock which one of the leading exporters of basmati rice which across domestic and international markets, were in focus following the update on the bonus issue.
With a market capitalization of Rs. 2160 crore, the shares of GRM Overseas Limited were trading at Rs.360, down by 0.09 percent from the previous day’s closing price of Rs.360.35.
Delay in Bonus
On 13th August, GRM Overseas Limited intimated that a board meeting would be held on 20th August for the proposal of issue of bonus shares, but later today it got cancelled due to unexpected reasons and will be rescheduled soon, thereby delaying the issue of bonus shares.
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Operational Front
Globally, GRM Overseas Limited is a top-five exporter of basmati rice, established in 1974. It is involved in producing, procuring, exporting, and marketing rice and paddy, and the products are exported to Saudi Arabia, Europe, and other countries.
The company has a strong distribution network with 125 distributors and over 1,03,000 kirana stores, targeting nearly 1.3 billion consumers. Its presence is across JioMart, Walmart India, Udaan, Amazon, DealShare, and CityMall, accompanied by a supplier base of more than 240.
For FY25, revenue from the international segment was 59 percent, which is leading, while revenue from India is 41 percent. This highlights that the company, being a major Basmati exporter, has a strong global presence.
GRM’s annual production capacity is 440,800 metric tons. Their infrastructure includes three milling plants, processes 550 MT daily, and nine Sortex plants with a combined output of 1,400 MT per day.
The company’s revenue from operations went down from Rs.370 in Q1FY25 to Rs.327 crore in Q1FY26, while net profit moved up slightly from Rs.18 to 19 crore.It has a healthy ROE of 14.3 percent, ROCE of 23.7 percent, and to debt-to-equity ratio of 0.9. With a PE ratio of 34.72 against the sector average of 20.13, the stock trades at a relatively higher valuation than its peers.
Written by Jhanavi Sivakumar
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