GRM Overseas Limited

Consumer Defensive — Packaged Foods · NSE

₹94.68+₹0.69 (+0.73%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of GRM Overseas Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

GRM Overseas Limited engages in the milling, processing, and marketing of branded and non-branded basmati rice in India. It offers spices; and chakki fresh atta, as well as a ready-to-cook biryani kit.

IndustryPackaged Foods

SectorConsumer Defensive

Employees141

Annual revenue₹1,712 Cr

How does it make money?

Turns over ₹1,712 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 141 employees supports ₹12.14 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹12.14 Cr

Who are its competitors?

The closest listed comparisons in its industry are NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD, TATA CONSUMER PRODUCT LTD, DABUR INDIA LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 20.0%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 12.1% against a peer median of 51.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE51.0%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +26% while net margin moved -8% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+26%

Margin effect-8%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

• ROE of 12.1% is moderate
✗ ROE has fallen by 10.7 points over the period

Quality vs. Valuation

Company Quality

53/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

58/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

20.9x

3Y Median

23.9x

40 monthly readings · mean 28.8x · range 10.5x–56.8x

Sector Median

51.7x

median of 4 sector peers

🟢Current valuation is approximately 13% below its 3y median of 23.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 60% below the peer median of 51.7x.

vs. its own history

Fair

23.9x median over 40 months · -13%

vs. sector peers

Cheap

51.7x median of 4 peers · -60%

vs. generic bands

Fair

15x–35x

EV/EBITDA

18.3x

PEG

3.98

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 11% over 3 years.
High return on capital employed
ROCE of 20.0% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 22.9% to 12.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 37.9% to 20.0% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹55 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.0% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Cheaper than its peers
It trades 60% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Returns on shareholder capital are falling
ROE has dropped from 22.9% to 12.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 5%✓ 7.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹55 Cr
Profit that never becomes cash eventually stops being profit.
4Revenue growth stays above 6% a year✓ 8.1% CAGR
Latest reported year was 30.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5ROCE stays above 17%✓ 20.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹1,965 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

20.9x

Fair

Fairly valued against the generic band

P/B Ratio

1.45x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹4.54

Profitable

Profitable on a per-share basis

ROE

12.1%

Moderate

Moderate capital efficiency

ROCE

20.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.61x

Moderate

Moderate leverage

Revenue Growth (YoY)

30.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-44.6%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹55 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

8.1%

Average

Average margins

Net Margin

4.2%

Average

Average bottom-line conversion

Current Ratio

2.01

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.03

Defensive

Steadier than the market

52W Range Position

16%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

83.1 / 85.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

80.6

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,354 Cr	₹1,288 Cr	₹1,345 Cr	₹1,712 Cr	+8.1%
EBITDA	₹110 Cr	₹99 Cr	₹105 Cr	₹126 Cr	+4.7%
EBITDA Margin	8.1%	7.7%	7.8%	7.3%	—
PAT (Net Profit)	₹63 Cr	₹60 Cr	₹61 Cr	₹73 Cr	+5.2%
EPS	₹3.48	₹3.32	₹2.92	₹7.54	+29.4%
ROE	22.9%	18.1%	14.2%	12.1%	—
ROCE	37.9%	29.8%	23.5%	20.0%	—
Total Debt	₹413 Cr	₹393 Cr	₹364 Cr	₹368 Cr	-3.8%
Free Cash Flow	-₹94 Cr	₹45 Cr	₹55 Cr	-₹55 Cr	—

🟢 Revenue has grown at 8.1% a year over 3 years.

🟢 EBITDA has grown at 4.7% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 7.3% over 3 years.

🟢 PAT (Net Profit) has grown at 5.2% a year over 3 years.

🟢 EPS has grown at 29.4% a year over 3 years.

🔴 ROE has fallen from 22.9% to 12.1% over 3 years (-10.7 pts).

🔴 ROCE has fallen from 37.9% to 20.0% over 3 years (-17.9 pts).

🟢 Total Debt has shrunk at 3.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,160 Cr

Total Liabilities

₹555 Cr

Cash & Equivalents

₹25 Cr

Operating Cash Flow

-₹54 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

4.7%

Insider Holding

74.8%

Peer Comparison

Company	P/E	ROE
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%
TATA CONSUMER PRODUCT LTD	59.3x	7.5%
DABUR INDIA LTD	34.7x	17.2%

Recent News

1 positive1 mixed4 general

GRM Overseas Share Price Near 52-Week Low, Price Action

Univest, 08 Oct

GRM Overseas' (NSE:GRMOVER) Profits Appear To Have Quality Issues

Simply Wall Street, 06 Jun

Small-cap FMCG stock ends in green territory after promoter's stake raise move

Livemint, 19 Jun

GRM Overseas net profit rises 10.2% in Q1FY27; EBITDA margin expands to 8.33%

scanx.trade, 12 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

GRM Overseas and 4 Other Stocks in Which Promoters Increased Their Stakes By Trade Brains

Investing.com India, 12 Jun

GRM Overseas Share Price News: Price Rise and Valuation

Univest, 12 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Growth · Risk

WeakProfitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑