Sakuma Exports: A Smallcap Stock with Big Returns in 2024

In the world of stock trading, smallcap stocks often go unnoticed. However, one such stock has been making waves in the Indian stock market - Sakuma Exports Ltd. This company, engaged in the buying, processing, marketing, exporting, and importing of agricultural products, has seen its share price double in the calendar year 2024.

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A Stellar Performance

As of Thursday, June 20, the Sakuma Exports stock price has recorded a nearly 100% year-to-date gain, hitting the day’s high of ₹37.86 apiece on the NSE. This impressive performance is not a sudden phenomenon but the result of a strong run over the past couple of months. The company's shares have been on a steady upward trajectory, reflecting the positive sentiment among investors. The surge in the stock price is a testament to the company's robust business model and its ability to deliver consistent growth.

Bonus Issue Announcement

The smallcap stock was in focus on Wednesday when the company announced a bonus issue. According to media reports, the company may issue up to 20 bonus shares for every 1 share held by existing shareholders, leveraging its surplus reserves of ₹700 crore. This move is expected to further reward shareholders for their trust and investment in the company. The bonus issue is a significant development as it indicates the company's confidence in its future prospects and its commitment to sharing its success with its shareholders.

Financial Highlights

Despite a 50% decline in revenue from operations to ₹500.5 crore for the March 2023 quarter compared with ₹1,005.2 crore in the year-ago quarter, the company recorded a 157% rise in its consolidated net profit to ₹26 crore. On a sequential basis, the profit surged by over 300% compared with ₹6.45 crore in the quarter ended December 2023. These figures underscore the company's operational efficiency and its ability to generate profits even in challenging market conditions.

For the full fiscal year 2023-24, Sakuma Exports’ net profit stood at nearly ₹40 crore on a revenue of ₹2,120.8 crore. The company also recommended a final dividend of ₹0.05 per share while announcing its March quarter results. This further enhances the return for the shareholders and reflects the company's strong financial health.

Conclusion

With a board meeting scheduled for July 1 to consider the bonus issue, all eyes are on Sakuma Exports. The company's performance in 2024 so far, coupled with the proposed bonus issue, makes it a smallcap stock to watch in the Indian stock market. The story of Sakuma Exports is a perfect example of how a smallcap company, with the right strategies and execution, can deliver big returns for its investors.

Disclaimer: 

This blog post is for informational purposes only and should not be taken as investment advice. Always conduct your own research or consult with a professional before making investment decisions.


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