GRM Overseas Reports Mixed Performance in Q2 FY25, Debt-Equity Ratio at 5-Year Low

GRM Overseas, a smallcap company in the rice and rice processing industry, recently declared its financial results for the quarter ending September 2024. The stock call for the company by MarketsMOJO is ‘Hold’.

According to the financials, GRM Overseas has seen a flat performance in the second quarter of the fiscal year 2024-2025, with a score of -2 compared to 4 in the previous quarter. However, there are some positive aspects to the company’s financials.

One of the strengths of GRM Overseas is its debt-equity ratio, which is the lowest it has been in the last five half-yearly periods at 0.54 times. This indicates that the company has been reducing its borrowing in comparison to its equity capital.

On the other hand, there are some areas of concern for GRM Overseas. The profit before tax (PBT) less other income has fallen by 35.8% compared to the average of the previous four quarters. The same trend can be seen in the profit after tax (PAT), which has fallen by 40.0% compared to the average of the previous four quarters. Additionally, the net sales for the quarter have also decreased by 7.4% compared to the average of the previous four quarters.

Another issue highlighted in the financials is the high non-operating income, which accounts for 37.36% of the PBT. This indicates that the company’s income from non-business activities is significant, which may not be a sustainable business model.

Overall, GRM Overseas has shown a mixed performance in the recent quarter, with some strengths and weaknesses. Investors are advised to hold their position in the company’s stock, as recommended by MarketsMOJO.