They might face some challenges in the coming season as basmati prices have shot through the roof and they just have 25 crores of inventory left (as per 30 september financials). This is where KRBL and even Chamanlal will have advantages as they will get decent inventory gains.
That being said, they should have had much better Q1 and Q2 I think, wonder why they did not post better results like other basmati companies.
Any views on the management?
The valuations that were attractive last year have now become expensive, and GRM is currently trading at 8x its historic valuations.
This said, margins have expanded from 3-4% in 2018 to 7-8% presently. They have been repaying their debt steadily quarter after quarter. Metrics like RoCE and the inventory turnover ratio have improved from 11%/4.03 in 2018 to 19%/8.15 in 2021. Their asset turnover ratio is also 22, almost 4x higher than Daawat’s.
On the corporate action front, they announced a sizeable dividend of Rs. 20 / share earlier this year, and they’ve just announced a 2:1 bonus. They’ve ventured into spices as seen earlier in the thread, but these spices can’t be found on the internet or at any store, so I’d guess that they haven’t launched the products.
They’ve started selling in the domestic market, but they announced this in a very strange way - they said they’ve formed a partnership with JioMart, selling their rice in 45 distribution centres.
At the same time, there’s been some equity dilution this quarter: