Shares of this microcap company surged 11 percent in Thursday’s trading session after the company announced producing ethanol. The shares have delivered more than 60 percent returns to its shareholders in 6 months.
With a market capitalisation of Rs. 532 crores, the shares of Sakuma Exports Ltd started Thursday’s trading session positively at Rs. 20.75 compared to its previous close of Rs. 20.45. The shares hit a high of Rs. 23.05, gaining around 11 percent and also recorded as the company’s fresh 52-week high.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had signed an agreement with Raigon Sugar and Power Ltd for the entire production of 3 crores litres annually for ethanol and its related products for the period of 3 years.
Looking at the company’s financial statements, the revenue decreased by 25 percent from Rs. 482.95 crores in the June quarter to Rs. 361.57 crores during the September quarter. On the other hand, the net profits declined by 42 percent from Rs. 4.77 crores to Rs. 2.73 crores during the same timeframe.
Coming onto the important financial statement, the return on equity decreased from 7.52 percent during FY21-22 to 7.17 percent in FY22-23. On a contrasting note, the return on capital employed increased from 9.18 percent to 10.02 percent during the same period. Furthermore, the company reduced debt to equity from 0.22 percent to 0.04 percent in the same time horizon.
According to the latest shareholding pattern, the Promoters hold 61.88 percent shares, and the remaining 38.12 percent stake is with the Retail Investors.
Moreover, the company enjoys a strong position in sugar exports from India with a market share of 10 percent in volume terms.
Headquartered in Mumbai, Sakuma Exports was incorporated in 2005. The company is engaged in Buying, Processing, Marketing, and Exporting bulk agricultural commodities like Sugar, Edible Oils, Oil Seeds, Pulses, Cotton, etc. It also offers innovative financial structured products linked to physical commodities.
Written By Vaibhav Patil
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