Multibagger agri stock: GRM Overseas shares rally over 25% in 3 sessions

Shares of GRM Overseas, a leading agro-products company in the country, have rallied over 25 per cent in the past three sessions. On Thursday, the BSE small-cap stock jumped more than 9 per cent intraday to hit a high of Rs 230 on BSE on rising investor participation. On NSE, the stock touched the day’s high at Rs 230.40.

The gains on Thursday are also on volumes that jumped more than 1200 per cent against the 5-day average delivery volume of 6.37 lakh during Wednesday’s session. A total of 14.30 lakh equity shares changed hands around 11 AM when the stock traded at Rs 223. The average traded price was Rs 221.78 per share.

During today’s trade, GRM Overseas shares outperformed the sector by 4.22 per cent. Its shares have been gaining consecutively for the last three days and have risen more than 25 per cent during the period, according to exchange details.

Meanwhile, brokerage firm Anand Rathi sees GRM Overseas shares touching the level of Rs 245. Choice Equity Broking said that it has been witnessing magnificent moves in the counter along with above-average volume, now this type of structure on the chart indicates something is cooking in the counter for some good reason. 

“On the technical side, the counter has given a breakout of its Upper Band of Rectangle Formation with above average volume which validates breakout structure and suggests a further upside move in the counter,” it said.

Moreover, the stock has been trading above its 100-day moving average which is placed at the Rs 180 level and shows that the near to medium-term trend has changed from down to up, he added.

“Not only this, after a long time, RSI has entered into an overbought zone, now whenever RSI enter in Overbought zone after a long time, it suggest a good rally in the counter. From the current juncture, expect a good move in the counter from the current market price of Rs 223. A strong support is placed at Rs 175 which also should be the stop loss. The target comes out to be Rs 260–320– 367,” it said.

GRM is among India’s leading basmati rice exporters in the country. It exports its products to nearly 38 countries. The company has three rice processing units in Gujarat and Haryana and owns brands like 10X, Himalaya River and Tanoush.

The BSE small-cap stock commands a market capitalisation of Rs 1,344 crore. Its shares have delivered a multibagger return to its investors. According to exchange data, the stock has delivered a solid return of more than 900 per cent in the last three years.