GRM Overseas's share price had a flat opening on Monday. However, the FMCG stock witnessed a sharp upside during the second half, touching an intraday high of ₹286 apiece on the NSE, logging around 6 percent in a fraction of a minute.
According to stock market experts, GRM Overseas is in the business of Basmati Rice exports, and the Exports Association has written a letter to the government of India (GoI) to reduce MEP on Basmati Rice Exports. This is the reason for the rise in this FMCG stock. They said that this short-term sentiment fuels the rally and that one should wait for the reply from the GoI.
What's fueling GRM Overseas share price rally
Highlighting the reason for the rise in GRM Overseas share price rally, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, “This rally in GRM Overseas share price can be attributed to the recent letter sent by the Exports Association to reduce MEP on the Basmati Rice exports from $950 per ton to $700 per ton. The association has said that higher MEP (Minimum Export Price) has led to higher prices in the global merchandise, which is hitting the demand for Indian basmati rice. After this letter, the market expects some relief from the GoI, and this rally in the GRM Overseas share price can be seen from these specs.”
Expecting a further rise in GRM Overseas's share price, Sumeet Bagadia, Executive Director at Choice Broking, said, "The GRM Overseas share price is looking positive on the chart pattern. Those with this stock can hold the scrip, maintaining a stop loss of ₹250. On breaching above the ₹300 mark, we can expect the scrip to touch ₹330 in the near term."
On the suggestion of the fresh investors, Bagadia said, 'Fresh investors can buy the scrip at CMP for ₹300 and ₹330 per share, targeting strict stop loss at ₹250."
GRM Overseas news
GRM Overseas Limited today announces the official launch of its new strategic platform, 10X Ventures. This innovative platform is poised to drive growth by investing in Digital-First New Age D2C brands, Lifestyle brands, smaller portfolio brands, and incubator opportunities. 10X Ventures will capitalize on GRM's expansive infrastructure and entrepreneurial spirit to bolster net sales and margin growth.
Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
