Synopsis: GRM Overseas shares surged 6% today due to expectations of a lower MEP for basmati rice exports. Analysts recommend holding or buying with a target of Rs330. The company's new 10X Ventures platform is set to boost growth.
GRM Overseas, a prominent player in the FMCG sector, witnessed a significant spike in its share price today, logging an intraday high of Rs286 on the NSE, reflecting a 6% increase within minutes. The sharp rise in GRM Overseas's stock is primarily attributed to recent developments in India's basmati rice export policy.
According to market experts, the rally was triggered by the Exports Association's recent letter to the Government of India (GoI), requesting a reduction in the Minimum Export Price (MEP) for basmati rice. Currently, the MEP is set at $950 per ton, but the association has proposed a reduction to $700 per ton. This adjustment is expected to make Indian basmati rice more competitive in the global market, potentially increasing demand and benefiting exporters like GRM Overseas.
Avinash Gorakshkar, Head of Research at Profitmart Securities, emphasized that the market is responding to the anticipation of relief from the GoI, driving the surge in GRM Overseas's stock price. He pointed out that the high MEP has led to inflated prices in the global market, negatively impacting demand for Indian basmati rice. The potential policy change could reverse this trend, boosting the stock's value.
Looking forward, Sumeet Bagadia, Executive Director at Choice Broking, expressed optimism about the stock's future performance. He noted that the GRM Overseas share price appears positive on the charts, advising current investors to hold their positions with a stop loss at Rs250. He further suggested that if the stock breaches the Rs300 mark, it could reach Rs330 in the near term.
Bagadia also recommended that fresh investors consider entering the stock at its current market price (CMP), targeting Rs300 to Rs330 per share, while maintaining a strict stop loss at Rs250.
In a related development, GRM Overseas recently announced the launch of its new strategic platform, 10X Ventures. This initiative aims to drive growth by investing in digital-first, new-age direct-to-consumer (D2C) brands, lifestyle brands, smaller portfolio brands, and incubator opportunities. By leveraging its extensive infrastructure and entrepreneurial spirit, GRM Overseas plans to enhance its net sales and margin growth through this innovative platform.
Disclaimer: The views and recommendations above are those of individual analysts or broking companies. We advise investors to check with certified experts before making any investment decisions.
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