Shares of speciality chemical firm GRM Overseas have supplied huge returns to traders within the final 10 years. The shares have risen 10433% over the last decade. Accordingly, if an investor had invested Rs 10,000 within the inventory 10 years in the past and stayed put, the funding would have swelled to Rs 10 lakh, in line with an evaluation by ET Markets.

In the final 3 years, the inventory has surged 2467% and gave returns of 1102% within the final 5 years.

GRM Overseas, a smallcap firm with a market capitalization of about Rs 1,032 crore, is engaged within the enterprise of milling, processing and advertising of branded and non-branded basmati rice within the home and abroad market.

It has an EPS of 8.93 on a trailing twelve month (TTM) foundation and the inventory is presently buying and selling at a PE of 19.28.

According to the newest shareholding sample accessible with the exchanges, promoters personal majority of the stake at 71.72%, whereas the remainder of 28.28% lies with the general public shareholders.

Among the general public shareholders, mutual funds haven’t any stake within the firm, whereas international traders have a meagre 0.07%. Retail traders have a mixed holding of 10.34% within the firm.

GRM Overseas has seen its gross sales develop manifold from simply Rs 270 crore in FY13 to Rs 1,379 crore in FY23. Meanwhile, revenue after tax (PAT) too surged from simply Rs 2.78 crore to almost Rs 63 crore in the identical interval.For the quarter ended March, complete revenues grew by 16% YoY, to Rs 438 crore as in comparison with Rs 377 crore in Q4FY22. PAT stood at Rs 11.3 crore.

Technical outlook – What ought to traders do?

Analysts say the inventory is presently displaying a bearish development on the charts and advise traders both to carry quick positions or keep away from shopping for.

“The stock is underperforming benchmark indices, and momentum indicators are confirming the downtrend. These combined factors suggest that GRM Overseas is in a precarious position. Holding short positions with a stop loss of 193 is a prudent strategy,” mentioned Mileen Vasudeo, Sr Technical Analyst, Arihant Capital.

“Downside targets could potentially be at 160–146 levels. However, investors should exercise caution, conduct thorough research, and consider their risk tolerance before making any investment decisions,” Vasudeo mentioned.

“The primary structure of the counter is following the downtrend in the longer time frame. The overall structure is distorted as it trades below its all-important moving averages. However, it is trying to form a base at around Rs 164 levels. On the upside, 200 is an immediate susceptible area, but before that, the counter has to protect the lower level of Rs 164,” mentioned Pravesh Gour, Senior Technical Analyst, Swastika Investmart.

With knowledge inputs from Ritesh Presswala

(Disclaimer: Recommendations, ideas, views and opinions given by the specialists are their very own. These don’t symbolize the views of Economic Times)

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