Shares of this microcap company jumped upto 3 percent in Tuesday’s trading session after receiving the first order from the Ministry of Agricultural, Fisheries Wealth and Water Resources, Sultanate of Oman, to supply Premium basmati rice.
With a market capitalization of Rs. 898 crores, the shares of GRM Overseas Ltd started Tuesday’s trading session on a higher note at Rs. 149.45 compared to its previous close of Rs. 148.25. During the trading session, the shares hit a high of Rs. 153.70, gaining around 3 percent and are currently trading at Rs. 148.60 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that they had received the first order from the Ministry of Agricultural, Fisheries Wealth and Water Resources, Sultanate of Oman, to supply 4,500 MT of Premium basmati rice. The order is worth Rs. 465 million (Rs. 46.5 crores).
Looking at the company’s financial statements, the revenue increased by 88 percent from Rs. 204 crores during the September quarter to Rs. 382 crores during the December quarter. In addition, the net profits magnified by 114 percent from Rs. 7 crores to Rs. 15 crores during the same period.
In FY 2023, the MENA region emerged as the primary importer of Basmati Rice, accounting for approximately 78 percent of India’s total exports. Meanwhile, Europe and the USA, along with Canada, contributed 6.9 percent and 6.6 percent, respectively.
GRM Overseas strategically directs 95 percent of its export activities to the MENA region, positioning itself as one of the top five Basmati Rice exporters in the area.
Furthermore, GRM has three rice processing units with an overall annual production capacity of 4,40,800 MT based out of Panipat (Haryana), Naultha (Haryana) and Gandhidham (Gujarat).
Additionally, the company has a warehousing facility of 1.75 Lakhs sq ft space adjacent to the Gandhidham plant facilitating speedy shipments from Kandla and Mundra ports.
Headquartered in New Delhi, GRM Overseas was incorporated in 1995. The company is primarily engaged in the business of milling, processing and marketing of branded and non-branded basmati rice in the domestic and overseas market.
Written by Vaibhav Patil
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