GRM Overseas- the emerging star in basmati

@ishandutta2007 wrote:

GRM is an basmati exporter founded in 1974 , based out of Panipath,Haryana

Markets:

• Gulf Region,
• Europe
• North America

Primary export market is Europe(couldn’t find the split, sent out a query, will update once they reply)

Products

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Financials

Board of Directors:

• Director Hukam Chand Garg
• Chairman & Managing Director Rohit Garg
• Independent Director Chetan Kapoor, Vikram Malik, Kiran Dua
• Joint Managing Director Atul Garg
• Company Secretary Tanushree Agarwal

Share holding pattern:

• Promoters: 75%
• Public:
  • Institutional: 8%(All DII, no FII holding)
  • Retail: 15%

Risks:

• Declining Rice demand
• Currency risk
• High Debt
• Low ROCE

Triggers:

In last two quarter sales have doubled and tripled respectively.

Valuation:

• A company giving 840 Crores of sales available at mere 125 Crore is cheap even though the stock have gone up 7-8x in last 2 years
• Enough scope for Margin expansion, PAT is mere 1% of sales, OPM in low single digits. If you compare with LTFood, KRBL their PAT is around 5-10% of sales and OPM around ~20%.
• KRBL with just 4x sales is valued 120x of GRM Overseas . If you try to valuate by P:BV or EV:EBITDA it’s still half of KRBL.
  Some old numbers: https://www.youtube.com/watch?v=jv6f_fMUS6M

Disc: Not invested

Posts: 4

Participants: 4

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