Mehabe score: 4 G Factor: 3 Piotski Score: 5 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 3 and Piotski score of 5.
Description
Sakuma Exports is engaged in trading of Agro Commodities and caters to both domestic as well as international markets.Site:SAKUMA
Market Cap:
Rs 262 cr
Price:
11.2
Trading pe:
23.7x
Book-value:
14.3/share
Div yield:
0.89 %
Earning yield:
9.06%
Face-value:
1.00/share
52week high:
11.75
52week low:
4.05
Technical Analysis
Stock trades at 11.2, above its 50dma 7.58. It also trades above its 200dma 6.56. The stock remains bullish on techicals
The 52 week high is at 11.75 and the 52week low is at 4.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.79 times its book value
-Promoter holding has increased by 3.81% over last quarter.
Weakness
– The company has delivered a poor sales growth of 7.20% over past five years.
-Debtor days have increased from 81.01 to 131.91 days.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 46.3x. 3M India trades at the industry’s max P/E of 184.71x. SAKUMA trades at a P/E of 23.7x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 7.0. SAKUMA has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 15.5%. The max 1- month return was given by Sakuma Exports: a return of 66.67 %
Quarterly Results
Sales for period ended Dec 2020 is Rs 130.3 cr compared to Rs 915.62 cr for period ended Dec 2019, a fall of 85.8%
Operating Profits reported at Rs 2.95 cr for period ended Dec 2020 vis-vis 5.61 for period ended Dec 2019 .
Operating Margins expanded 165.1 bps for period ended Dec 2020 vis-vis Dec 2019 .
The EPS for Dec 2020 was Rs 0.05 compared to Rs 0.09 for previous quarter ended Sep 2020 and Rs 0.31 for Dec 2019
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1506.0 cr for period ended TTM vis-vis sales of Rs 2546.0 cr for the period ended Mar 2020, a fall of 69.1%. The 3 year sales cagr stood at -30.8%.
Net Profit reported at Rs 11.0 cr for period ended TTM vis-vis sales of Rs 18.0 cr for the period ended Mar 2020, falling 63.6%.
Company reported a poor Net Profit CAGR of -39.2% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 86.0 cr for period ended Mar 2020 vis-vis Rs 12.0 cr for period ended Mar 2019
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 6.0% compared to 17.0% over the last 3 Years. – The stock has given a return of 44% on a 1 Year basis vis-vis a return of -12% over the last 3 Years. – The compounded sales growth on a TTM bassis is -55% vis-vis a compounded sales growth of -13% over the last 3 Years. – The compounded profit growth on a TTM basis is -77% vis-vis a compounded profit growth of -20% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.0% vis-vis 0.0% for Dec 2020 – Public shareholding has fallen for the period ended Mar 2021. The Mar 2021 public holding stood at 38.12% vis-vis 41.93% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
-Stock is trading at 0.79 times its book value
-Promoter holding has increased by 3.81% over last quarter. – The company has delivered a poor sales growth of 7.20% over past five years.
-Debtor days have increased from 81.01 to 131.91 days.
-‘s cost of borrowing seems high
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 7.58 and is trading at 11.2 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
