Sakuma Exports Ltd. was listed on the NSE on March 8, 2006. In the last five years, the stock has given a massive return of more than 200%. Will Sakuma Exports continue to provide such great returns in the future as well? Let’s explore Sakuma Exports’ growth potential and Sakuma Exports share price target from 2025 to 2050 in this article.
About Sakuma Exports
Sakuma Exports is a trading company founded in 1998. It deals with agricultural products such as sugar, coffee, spices, and oilseeds. The company acquires these products from farmers and suppliers and sells them in both domestic and international markets. Sakuma Exports has grown over time by focussing quality and building strong customer relationships. It works in several countries, connecting producers with buyers. The company intends to expand further by providing dependable services and preserving trust in the global market.
Sakuma Exports Business Model
- Trading in Agro Commodities: Sakuma Exports purchases and sells bulk agricultural products such as sugar, oil for cooking, oilseeds, pulses, cotton, grains (rice, wheat and maize), spices and animal feed. They act as clients, processors, marketers, exporters, and importers for these materials.
- Distribution and Supply Chain Management: The company operates distribution centres in Bihar, West Bengal, and the North East region of India. This allows them to efficiently distribute products and maintain a consistent supply chain, which contributes to their growth.
- Maize Purchasing and Ethanol Production: Sakuma Exports has begun sourcing maize directly from farmers, particularly in Eastern India, with the goal of supplying it to multigrain refineries for ethanol production. This move is intended to tap into the growing ethanol market and is expected to result in significant revenue.
- Financially Structured Products: Sakuma Exports provides financial products based on physical commodities. These products generate additional revenue by leveraging the company’s commodity trading expertise.
- Diversification into Petrochemicals, Petroleum, and Minerals: The company has expanded its business to include the trading of petrochemicals, petroleum products, and minerals, increasing its revenue base.
- Renewable Energy Initiatives: Sakuma Exports is involved in renewable energy projects that align with global sustainability trends and provide new revenue opportunities.
- Domestic and International Market Presence: The company is based in India and exports to the Middle East, Southeast Asia, the Far East, Australia, Europe, and Africa, generating revenue in both domestic and international markets.
Sakuma Exports Fundamental Analysis
| Stock Name | Sakuma Exports Ltd. |
|---|---|
| NSE Symbol | SAKUMA |
| Market Cap | ₹ 415 Cr. |
| 52W High | ₹ 10.3 |
| 52W Low | ₹ 2.55 |
| Stock P/E | 11.4 |
| Book Value | ₹ 4.45 |
| Dividend Yield | 0.38 % |
| ROCE | 8.61 % |
| ROE | 7.53 |
| Face Value | ₹ 1.00 |
| Shareholders | Mar 2023 | Mar 2024 | Dec 2024 |
|---|---|---|---|
| Promoters | 61.87% | 61.87% | 46.29% |
| FIIs | 0.18% | 0.21% | 0.13% |
| DIIs | 0.00% | 0.00% | 0.00% |
| Government | 0.00% | 0.00% | 0.00% |
| Public | 37.95% | 37.92% | 53.59% |
| No. of Shareholders | 39,329 | 56,354 | 2,17,215 |
Key Factors Driving Sakuma Exports Future Growth
- Strong Market Demand: Sakuma Exports benefits from the growing global demand for agricultural products such as sugar, spices, and edible oils.
- Expanding Global Reach: Sakuma Exports is expanding its global reach by exporting to new countries, which will help generate additional revenue.
- Diverse Product Portfolio: Diverse Product Portfolio: Sakuma Exports trades in a variety of agricultural commodities, lowering the risk of reliance on a single product.
- Government Support: Positive trade policies and government schemes for agriculture and exports will accelerate Sakuma’s export growth.
- Rising Commodity Prices: Higher global prices for key agricultural goods may boost Sakuma Exports’ earnings.
- Efficient Supply Chain: Sakuma Exports has a well-managed supply chain, which allows for smooth trade and faster deliveries.
- Strategic Partnerships: Sakuma Exports’ partnerships with suppliers, buyers, and logistics companies help it improve efficiency and expand its business.
- Focus on Quality: Sakuma Exports guarantee high-quality products, which helps to build trust and attract repeat customers.
- Financial Strength: Sakuma Exports’ strong financial backing and income help it to invest in new opportunities.
- Technology Adoption: Sakuma Exports is using advanced technology in purchase, processing, and delivery to stay ahead of the competition.
- Sustainable Practices: Sakuma Exports focusses on eco-friendly and sustainable farming practices, which appeal to global buyers.
- Experienced Management: Sakuma Exports’ consistent growth is being driven by an experienced leadership team with extensive industry knowledge.
- Growing Domestic Market: In addition to exports, Sakuma Exports benefits from rising Indian demand.
- Currency Exchange Benefits: A weaker Indian rupee against major currencies can make Sakuma Exports’ products more competitive in global markets.
- Expanding Processing Facilities: Sakuma Exports is investing in better infrastructure to handle larger volumes and improve efficiency.
Pros of Sakuma Exports
- Strong Profit Growth: Sakuma Exports has achieved a strong profit growth of 50% CAGR over the last three years.
- Low P/B Ratio (Undervalued Stock): Sakuma Exports has a low Price to Book Value (P/B) ratio of 0.60, which indicates that it is trading close to its intrinsic value and may be undervalued.
- Low PE Ratio Compared to Peers: Sakuma Exports has a PE ratio of 11.4, which is lower than the industry average of 29.3, making it relatively undervalued and potentially a good investment opportunity.
- Debt Free Company: Sakuma Exports is almost debt free company with a debt to equity ratio of 0.07, which shows its financial stability.
Cons of Sakuma Exports
- Decreasing Sales – Sakuma Exports sales is decreasing at a CAGR of 13%. over the last five Years.
- Decreasing Profits – Sakuma Exports profits are decreasing at a CAGR of 13%. over the last five Years.
- Low Return on Equity (ROE): Sakuma Exports’ 5-year average ROE is 6.07%, which indicates that the company is not using shareholder funds efficiently to generate profits.
- Low Return on Capital Employed (ROCE): Sakuma Exports 5-year average ROCE is 7.89%, indicating inefficient use of capital to generate profits.
| Years | Target Price |
|---|---|
| Sakuma Exports Share Price Target 2025 | ₹3.3 to ₹5 |
| Sakuma Exports Share Price Target 2026 | ₹4 to ₹5.30 |
| Sakuma Exports Share Price Target 2027 | ₹4.70 to ₹7 |
| Sakuma Exports Share Price Target 2028 | ₹5.70 to ₹9 |
| Sakuma Exports Share Price Target 2029 | ₹6.84 to ₹11 |
| Sakuma Exports Share Price Target 2030 | ₹8.20 to ₹15 |
| Sakuma Exports Share Price Target 2035 | ₹16.4 to ₹45 |
| Sakuma Exports Share Price Target 2040 | ₹32.8 to ₹136 |
| Sakuma Exports Share Price Target 2050 | ₹131.3 to ₹820 |
Conclusion
Sakuma Exports has demonstrated significant growth over the years, leveraging its strong presence in agricultural commodities, expanding global reach, and diversified business model. While the company has strong financial backing, a well-managed supply chain, and strategic partnerships, challenges such as declining sales, profits, and lower returns on equity and capital employed must be addressed for sustained growth. With increasing investments in ethanol production, renewable energy, and international expansion, Sakuma Exports holds long-term potential. For the latest updates, you can visit Sakuma Exports’ official website.
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
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