Sakuma Exports' Financial Performance Raises Concerns for Investors

Despite the negative financial performance, Sakuma Exports has maintained a strong cash position with cash and cash equivalents of Rs 72.22 crore in the last six half yearly periods. However, the company's net sales have fallen by 43% in the current quarter compared to the average of the previous four quarters. This trend is also reflected in the company's profit after tax, which has decreased by 87.9% in the current quarter.

One of the major concerns for Sakuma Exports is its inventory turnover ratio, which has been consistently decreasing in the last five half yearly periods. This indicates a slowdown in the company's pace of selling inventory. Additionally, the company's operating cash flow has also been on a decline in the last three years.

The company's operating profit and profit before tax have also hit a low in the current quarter, with the operating profit margin at its lowest in the last five quarters. This can be attributed to the high non-operating income, which is 70.83% of the profit before tax. This indicates that the company's income from non-business activities is high, which may not be a sustainable business model.

The earnings per share have also decreased significantly in the current quarter, indicating a decline in profitability and lower earnings for shareholders. Based on these financial results, MarketsMOJO has given a 'Sell' call for Sakuma Exports' stock.

It is important for investors to carefully analyze the company's financial performance and future prospects before making any investment decisions. With a microcap size, Sakuma Exports may have potential for growth in the future, but it is important to consider the current financial situation before making any investment decisions.