Sakuma Exports Receives 'Sell' Rating from MarketsMOJO Due to Poor Growth and Lackluster Financial Results

Sakuma Exports, a microcap trading company, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's poor long-term growth, with net sales and operating profit declining at an annual rate of -8.58% and -19.87%, respectively, over the last 5 years.
In addition, the company's recent financial results for June 2024 have been lackluster, with a -43.0% decrease in PAT(Q) at Rs 5.69 crore and a lowest operating cash flow of Rs -84.99 crore. The PBT LESS OI(Q) has also fallen by -19.5% at Rs 6.21 crore.

One of the few positives for Sakuma Exports is its low Debt to Equity ratio of 0.04 times, which indicates a strong financial position. However, the technical trend for the stock is currently sideways, with no clear price momentum. The trend has also deteriorated from Mildly Bullish on 15-Oct-24, resulting in a -2.8% return since then.

With a ROCE of 6.3, the stock is currently fairly valued with a 1.4 Enterprise value to Capital Employed. It is also trading at a discount compared to its average historical valuations. While the stock has generated a return of 33.70% over the past year, its profits have only risen by 62.4%, resulting in a PEG ratio of 0.8.

Overall, based on the company's poor long-term growth and recent financial performance, MarketsMOJO has downgraded its stock call on Sakuma Exports to 'Sell'. Investors should carefully consider these factors before making any investment decisions.