Shares of GRM Overseas, a leading agricultural products company in the country, have surged over 25 percent in the last three sessions. On Thursday, the BSE small cap stock rose more than 9 percent intraday and touched a high of Rs 230 on the BSE amid rising investor participation. The stock touched the day’s high of Rs 230.40 on the NSE.
Thursday’s gains also came on the back of volumes that rose more than 1200 percent over the 5-day average delivery volume of 6.37 lakh during Wednesday’s session. Around 11 am, a total of 14.30 lakh shares changed hands as the stock was trading at Rs 223. The average trading price was Rs 221.78 per share.
During today’s trading, shares of GRM Overseas outperformed the sector by 4.22 percent. The company’s shares rose steadily in the last three days and rose by more than 25 percent during this period, according to the stock exchange.
Meanwhile, brokerage firm Anand Rathi expects GRM Overseas shares to touch the Rs 245 level. Choice Equity Broking said it has seen great price action and above-average volume on the counter for good reason.
“On the technical side, the counter has achieved a breakout from its upper band of the rectangle formation with above-average volume, confirming the breakout structure and suggesting further upward movement of the counter,” it said.
Furthermore, the stock traded above its 100-day moving average, which stands at Rs 180, showing that the short to medium term trend has changed from a downward trend to an upward trend, he added.
“Moreover, the RSI has entered an overbought zone after a long time. Now, whenever the RSI enters the overbought zone after a long time, it indicates a good recovery of the counter. From the current position, you can expect a good move counter from the current market price of Rs 223. A strong support is placed at Rs 175, which should also be the stop loss. The target is Rs 260-320-367,” it said.
GRM is one of India’s leading exporters of basmati rice in the country. It exports its products to almost 38 countries. The company has three rice processing plants in Gujarat and Haryana and owns brands such as 10X, Himalaya River and Tanoush.
The BSE small cap stock has a market capitalization of Rs 1,344 crore. Its shares have given multi-bagger returns to its investors. According to stock market data, the stock has achieved a solid return of more than 900 percent in the last three years.
https://www.zeebiz.com/markets/stocks/news-multibagger-agri-stock-grm-overseas-shares-rally-over-25-in-3-sessions-252502 Multibagger Agriculture Stock: GRM Overseas shares gain over 25% in three sessions