In Tuesday’s trading session, the shares of a company engaged in trading of agro commodities surged by 8.3 percent on BSE to hit an intraday high at Rs. 38.28, after the Board of the company approved the issue of bonus shares and fundraising of up to Rs. 500 crores via QIP.
With a market cap of Rs. 1,102 crore, Sakuma Exports Limited have delivered multibagger returns of nearly 160.8 percent in one year and around 87 percent of positive returns YTD.
What’s the news:
Sakuma Exports has notified the stock exchanges regarding its Board’s endorsement of several strategic initiatives.
These include the approval of issuing bonus shares in a 1:4 ratio, wherein eligible shareholders will receive 4 new fully paid-up equity shares of Re. 1 each for every 1 existing share of Re. 1 each held, subject to the approval of the company’s shareholders. The record date is yet to be finalised.
Additionally, the Board has approved the raising of funds by way of a Qualified Institutions Placement (QIP) for an amount of up to Rs. 500 crores, in one or more tranches.
Furthermore, Sakuma Exports’ Board has accepted to undertake investments up to a sum of Rs. 600 crore in direct/step-down subsidiaries of Sakuma Exports whether existing or proposed to be set up at a future date, whether domestic or international.
Previous News:
On 14th May, Sakuma Exports made a strategic investment of $3.6 million in its wholly-owned subsidiary, Sakuma Impex Ltd., in the UK, bringing the total investment to $7.35 million.
The investment was aimed at strengthening Sakuma Impex’s operations in global commodity trading. The company’s subsidiary has already secured an order book exceeding £5 million, showcasing its efficient supply chain and promising outlook.
With this investment, Sakuma Exports is positioning its UK subsidiary for significant growth and expects it to achieve superior profit margins compared to its Indian counterpart.
Financials:
In terms of financials, the revenue from operations stood at Rs. 500.55 crore
in Q4 FY23-24, declining by 50.2 percent YoY from Rs. 1,005.2 crore in Q4 FY22-23, but the after-tax profit grew by 157.2 percent to Rs. 26 crore from Rs. 10.11 crore, during the same period.
In the fourth quarter of the 2023-24 fiscal year, Sakuma Exports significantly reduced its total expenditure by 51.5 percent to Rs. 481.3 crore compared to Rs. 993.4 crore in Q4 FY22-23.
The decline in expenditure can be attributed to Sakuma Exports’ efforts to optimize its operations and control costs amid the challenging market environment.
About the company:
Sakuma Exports Limited, a Government of India recognised Star Trading House, is engaged in the business of export and import of commodities.
The company is a prominent buyer, processor, marketer, exporter and importer of bulk agricultural commodities namely sugar, edible oils, oil seeds, pulses, cotton and several specialty crops.
Written by Shivani Singh
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