Multibagger alert: This BSE small cap company’s share price jumped nearly 30x in just 2 years!

An investment of Rs 1 lakh in the shares of this company would have turned to Rs 29.29 lakh today.

GRM Overseas Ltd, an S&P BSE smallcap company, has delivered phenomenal returns to its shareholders in the last couple of years.

• In the last one-year period, the shares of GRM Overseas delivered returns of 146%. An investment of Rs 1 lakh in the shares of this company one year ago would have turned to Rs 2.46 lakh today.

• In the last two years, the shares of GRM Overseas appreciated 2829%. An investment of Rs 1 lakh in the shares of this company would have turned to Rs 29.29 lakh today.

Analyzing the share price movement, the majority of leap in the share price came after November 2021. In November 2021, the company announced a stock split action. With this action, the shares with an initial face value of Rs 10 per share came down to Rs 2 per share. This action led to a spurt in trading volume, driving the share price upward.

GRM Overseas Ltd is an India-based company engaged in the business of consumer staples. The company was incorporated in 1995 and is based in Panipat, India. The company produces a range of items for its customers spread across the world. GRM Overseas Ltd is engaged in the business of processing and sale of almond kernels, paddy, clove, pista, rice, and wheat. The company markets their products under the brand name Kamdhenu and Chef and exports basmati rice to Saudi Arabia, Europe and other countries.

Looking at the financials, between FY20 and FY22, the company’s consolidated topline grew 48.4% YoY to Rs 1171.36 crore. The PBIDT came in at Rs 129.77 crore, exhibiting an increase of 114% in the two-year period. Similarly, the PAT grew 166% to Rs 84.52 crore.

On the valuations front, the company is trading at a TTM PE of 26.39x as against the industry PE of 63.62x. In FY22, GRM Overseas delivered a stellar ROE and ROCE of 41.10% and 61.44%, respectively.

At 11.24 am, the shares of GRM Overseas Ltd were trading at Rs 374.80 apiece. Their 52-week high and low stand at Rs 935.40 and Rs 130.41, respectively.