Madhusudhan Kela's portfolio Multibagger FMCG stock in focus as company announces Q3 and 9M results; Details inside!

On Thursday, the shares of GRM Overseas Ltd jumped 2.41 per cent to Rs 170 per share from its previous closing of Rs 165.90 per share. The company has a market cap of over Rs 3,000 crore. Madhusudhan Kela's family company, Singularity Equity Fund I, led by veteran investor Madhu Kela and his son Yash Kela, holds 25,20,000 shares, or a 1.37 per cent stake, in the company.

Since its start in 1974 as a rice processing and trading house, GRM Overseas Ltd has evolved into a major consumer staples organisation and one of India's top five rice exporters. The company initially focused on the Middle East and the United Kingdom but has since expanded its market to 42 countries. With three processing units in Haryana and Gujarat, GRM has an annual production capacity of 440,800 MT and a large warehousing facility near the ports of Kandla and Mundra. The company sells its products under brands like "10X," "Himalaya River," and "Tanoush," as well as through private labels, and has recently focused on direct-to-consumer sales through major retailers both in India and abroad, while maintaining strict quality control.

According to Quarterly Results, the net sales increased by 30 per cent to Rs 483 crore and net profit increased by 29 per cent to Rs 14.76 crore in Q3FY26 compared to Q3FY25. Looking at its nine-month results, the net sales increased by 11 per cent to Rs 1,172 crore and net profit increased by 29 per cent to Rs 53 crore in 9MFY26 compared to 9MFY25. In its annual results, the net sales increased by 2.2 per cent to Rs 1,374.2 crore and net profit increased by 1 per cent to Rs 61.24 crore in FY25 compared to FY24.

The company allotted 90,70,000 fully convertible share warrants at Rs 150 each, totalling Rs 136.05 crore, with 25 per cent received upfront from promoter and non-promoter entities. While 13,52,000 warrants were converted into equity shares during the quarter ended June 30, 2025, the remaining 77,18,000 warrants stay outstanding for future conversion. Following an Extraordinary General Meeting on December 9, 2025, the Company issued 12,27,04,000 bonus shares in a 2:1 ratio by capitalising Rs 27.63 crore from retained earnings, a figure that includes the 1,54,36,000 bonus shares reserved for the outstanding warrants. Consequently, the Company has restated its earnings per share (EPS) for all presented periods to account for this bonus issuance, calculating basic EPS on the post-conversion capital and diluted EPS assuming full warrant conversion.

The shares of the company have an ROE of 16 per cent and an ROCE of 14 per cent with a 3-year ROE track record of 20 per cent. The stock gave multibagger returns of 1,275 per cent in 5 years and a whopping 12,860 per cent over a decade.

Disclaimer: The article is for informational purposes only and not investment advice.