Shares of speciality chemical firm GRM Abroad have supplied large 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.
Within the final 3 years, the inventory has surged 2467% and gave returns of 1102% within the final 5 years.GRM Abroad, a smallcap firm with a market capitalization of about Rs 1,032 crore, is engaged within the enterprise of milling, processing and advertising and marketing 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.
In keeping with 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 many 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 Abroad has seen its gross sales develop manifold from simply Rs 270 crore in FY13 to Rs 1,379 crore in FY23. In the meantime, 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, whole 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 pattern on the charts and advise traders both to carry brief positions or keep away from shopping for.
“The inventory is underperforming benchmark indices, and momentum indicators are confirming the downtrend. These mixed elements counsel that GRM Abroad is in a precarious place. Holding brief positions with a cease lack of 193 is a prudent technique,” mentioned Mileen Vasudeo, Sr Technical Analyst, Arihant Capital.
“Draw back targets might doubtlessly be at 160–146 ranges. Nonetheless, traders ought to train warning, conduct thorough analysis, and contemplate their threat tolerance earlier than making any funding selections,” Vasudeo mentioned.
“The first construction of the counter is following the downtrend within the longer timeframe. The general construction is distorted because it trades under its all-important transferring averages. Nonetheless, it’s making an attempt to type a base at round Rs 164 ranges. On the upside, 200 is a right away vulnerable space, however earlier than that, the counter has to guard the decrease degree of Rs 164,” mentioned Pravesh Gour, Senior Technical Analyst, Swastika Investmart.
With information inputs from Ritesh Presswala
(Disclaimer: Suggestions, ideas, views and opinions given by the consultants are their very own. These don’t symbolize the views of Financial Occasions)
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