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Check Before You Invest : Sakuma Exports Ltd

BSE: 532713 NSE: SAKUMA ISIN: INE190H01024
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Sakuma Exports Ltd belong to?
Sakuma Exports Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Sakuma Exports Ltd a good quality company?
Sakuma Exports Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Sakuma Exports Ltd undervalued or overvalued?
Sakuma Exports Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 40.34 29.92
Price to Book 0.54 1.24
Price to Sales 0.18 0.21
EV to EBITDA 17.07 15.73
Q.4 Is Sakuma Exports Ltd a good buy now?
Sakuma Exports Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Sakuma Exports Ltd?
Sakuma Exports Ltd revenue growth is 2.6% for FY-2025, which is below its 5-year CAGR of 5.08%, indicating slower growth.

Q.2 Gross Profit margin of Sakuma Exports Ltd?
Sakuma Exports Ltd Gross profit margin which is the profit after deduction of direct costs, is 1% for FY-2025, which is below its 5-year median of 1.2%, indicating decreasing margins.

Q.3 Operating Profit Margin of Sakuma Exports Ltd?
Sakuma Exports Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0.76% for FY-2025, which is below its 5-year median of 1.09% indicating decreasing margins.

Q.4 Net Profit Margin of Sakuma Exports Ltd?
Sakuma Exports Ltd Net Profit Margin is 0.62% for FY-2025, is below its 5-year median of 0.84%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 1 1.2
Operating Profit Margin (%) 0.76 1.09
Net Profit Margin (%) 0.62 0.84

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Sakuma Exports Ltd?
Sakuma Exports Ltd Return on Asset is 2.06%, which is below its 5-year historical median of 3.72%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Sakuma Exports Ltd?
Sakuma Exports Ltd Return on capital employed is 4.25% for FY-2025, which is below its 5-year historical median of 7.82%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Sakuma Exports Ltd?
Sakuma Exports Ltd Return on equity is 3.03% for FY-2025, which is below its 5-year historical median of 5.75%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Sakuma Exports Ltd?
Sakuma Exports Ltd Cash conversion cycle is 61 days, above its 5-year historical median of 49 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 3.37 4.32
ROE (%) 3.03 5.75
ROCE (%) 4.25 7.82
Cash Conversion Cycle 61 days 49 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Sakuma Exports Ltd?
Sakuma Exports Ltd Debt-to-Equity ratio is 0.21, which is above the industry average of 0.03, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Sakuma Exports Ltd?
Sakuma Exports Ltd Debt to cash flow from operations is -1.04, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Sakuma Exports Ltd?

Q.1 Promoter shareholding and pledge status of Sakuma Exports Ltd?
Promoters hold 46.29% of the Sakuma Exports Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Sakuma Exports Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Sakuma Exports Ltd vs industry peers?
Sakuma Exports Ltd revenue CAGR is 5.08%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 2.6 -
Gross Profit Growth (%) -16.7 17.7
Operating Profit Growth (%) -11.8 16.1
Net Profit Growth (%) -25 17.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 3.37 0.52
ROE (%) 3.03 2.05
ROCE (%) 4.25 3.6
Cash Conversion Cycle (days) 60.98 46

Valuation & price assessment

Q.1 Stock return of Sakuma Exports Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 1.3% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
1.3% 6% -13.7% -41.4%
Q.2 Valuation ratios of Sakuma Exports Ltd vs historical?
The current P/E ratio of 40.34 is higher than its historical median of 29.92, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 40.34 29.92 33.62
Price to Book 0.54 1.24 1.57
Price to Sales 0.18 0.21 2.21
EV to EBITDA 17.07 15.73 14.09

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