Multibagger FMCG stock in focus as the company acquires GRM ARABIA FZCO, Dubai

On Friday, the shares of GRM Overseas Ltd gained 0.53 per cent to Rs 161.35 per share from its previous closing of Rs 160.50 per share. The company has a market cap of over Rs 2,900 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.

GRM Overseas Limited has successfully completed the acquisition of GRM Arabia FZCO, a newly incorporated entity registered under the Dubai Multi Commodities Centre Authority (DMCC). This strategic move establishes GRM Arabia FZCO as a 100 per cent Wholly Owned Subsidiary (WOS) of the company. The acquisition was executed through a cash consideration of AED 50,000 for the entire share capital. As the target entity is a fresh incorporation within the Fast-Moving Consumer Goods (FMCG) sector, it has yet to commence business operations, resulting in no prior turnover or profit history to report. The transaction did not require any governmental or regulatory approvals and was not classified as a related party transaction.

The primary objective of this acquisition is to position GRM Arabia FZCO as a dedicated distribution and marketing hub within the United Arab Emirates. By leveraging this UAE-based entity, GRM Overseas aims to streamline the trading, importing, exporting, and distribution of rice, food grains, and related food products. This expansion is designed to better serve the local UAE market and enhance the company's reach into neighbouring international markets. This operational foothold in a global trade center aligns with the company's core business line while providing a logistical advantage for its broader FMCG portfolio.

About 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's shares 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 565 per cent in 5 years and a whopping 16,000 per cent over a decade.

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