Our 5th company in the Series of Best Stocks Below Rs. 50 is Sakuma Exports Ltd.
This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
Sakuma Exports Limited is engaged in the business of trading and exporting of commodities and merchandise domestically and in the international market. The Company exports various products, including maize, de oiled cake, castor oil, tea leaf etc.
Now Let’s check the important fundamental figures of this company. This is a small cap company with Market Cap ₹241cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 21.90
Sector PE Ratio: 58.48
PE Ratio of this company is low but better than Sector’s PE. So it’s a Good PE than the peers of this company.
PB Ratio : 1.14
Sector PB Ratio : 4.46
PB Ratio of this company is low than Sector’s PB ratio. So it’s Average PB than the peers of this company.
Dividend Yield : 0.44%
Sector Dividend Yield : 0.77%
Dividend Yield of this company is low than Sector. Dividend of this company is Below Average than the peers of this company.
ROE: 3.3%
ROCE: 3.6%
ROE (Return on equity) and ROCE (Return on capital equity) is Below Average
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
| Year | Revenue(cr.) | Profit(cr.) |
| 2021 | 1,333.48 | 11.03 |
| 2020 | 1,513.35 | 11.28 |
| 2019 | 4,370.22 | 69.82 |
| 2018 | 4,556.73 | 49.02 |
| 2017 | 3,926.41 | 36.31 |
You can see the company growth clearly in the above table, in 2017 Net profit was 36.31 Cr. only and in 2018, It increased to 49.02 Cr. and in 2019, it is increased to 69.82 Cr. Due to Covid, In 2020 company profit decreased to 11.28 Cr. And in 2021 company profit is 11.03 Cr.
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
| 2020 | 2019 | 2018 | 2017 |
| 760.25 | 635.68 | 556.27 | 761.94 |
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2021, Company have 760.25 Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
| 2020 | 2019 | 2018 | 2017 |
| 75.91 | 11.39 | 86.27 | 0.93 |
Debt Level: Sakuma Exports debt to equity ratio (1.2%) is considered satisfactory.
Reducing Debt: Sakuma Exports debt to equity ratio has reduced from 101.7% to 1.2% over the past 5 years.
Debt Coverage: Sakuma Exports operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: Sakuma Exports interest payments on its debt are well covered by EBIT (3.2x coverage).
Share Holding Pattern
| Promotor Holding | Foreign Institution | Mutual Fund | Other Domestic Institutions | Retail & Others | |
| Jun 2021 | 61.88% | 0.00% | 0.00% | 0.00% | 38.12% |
| Mar 2021 | 61.88% | 0.00% | 0.00% | 0.00% | 38.12% |
| Dec 2020 | 58.07% | 0.00% | 0.00% | 0.00% | 41.93% |
| Sep 2020 | 58.07% | 0.00% | 0.00% | 0.00% | 41.93% |
Above table showing there is no big change in Promotors holding which is 61.88% in June 2021. FIIs invested in June 2021 with 0.00% and retail investor is 38.12%.
Now We’ll check the return of the company, This company started from Rs. 4.71 at 8 March 2006. This company given 62.20% returns in last 1 year from 2020 to 6 Sep 2021.
Investment Checklist for Sakuma Exports Ltd.
- The company is currently profitable
- Debt level is low and not considered a risk
- The company’s earnings are high quality
- Profit margins improved or Sakuma Exports became profitable
- At least 3 years of financial data is available
- No concerning events detected
- Revenue is meaningful (₹14B)
- Does not have a meaningful market cap (₹2B)
- Shareholders have been diluted in the past year
- Earnings have declined by 32.1% per year over past 5 years
- Highly volatile share price over the past 3 months
- Unstable dividend track record
- Sakuma Exports does not have negative shareholders equity.
According to its historical performance we can predict stock target.
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Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
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Entry Buying Zone : 8 to 8.50
Target: 15 (90% Upside)
Time Horizon: 1 Year
Risk Profile: High Risk (Stock is 3.71x as volatile as Nifty)
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Hope you liked Our 5th company in the Series of Best Stocks Below Rs. 50. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
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