1. At a Glance – The ₹288 Cr Sugar Trader With 0.27% Margin
Let’s begin with a reality check.
Sakuma Exports Ltd is currently sitting at a market cap of ₹288 Cr, trading at ₹1.84 per share, down 25% in the last three months and 36% in one year. The stock is available at 0.39x book value — which sounds like a clearance sale… until you look at the earnings.
Quarterly sales: ₹363 Cr
Quarterly PAT: ₹0.61 Cr
Operating margin: -0.10%
ROE: 1.91%
ROCE: 2.79%
P/E: 38.5
Yes, you read that correctly. A company with a 0.27% operating margin is trading at 38x earnings.
This is not a tech startup. This is a sugar trader.
The latest Q3 FY26 results show sales down 23.9% YoY and profits down 81.9% YoY. The government partially lifted the sugar export ban in Jan 2025, but the after-effects are still visible.
The real question:
Is this a temporary policy hiccup… or is this the new normal for Sakuma?
Let’s open the godown and see what’s actually inside.
2. Introduction – When Government Policy Becomes Your CFO
Sakuma is not a manufacturing company. It doesn’t crush sugarcane. It doesn’t refine oil.
It trades.
It buys bulk agricultural commodities like sugar, pulses, edible oil, cotton, and sells them domestically and internationally. Think of it as a middleman with spreadsheets and warehouse access.
Now here’s the twist.
Sugar accounted for 99% of revenue in FY22. In FY24, that fell to 78%.
Why?
Because in October 2023, the Indian government imposed a sugar export ban. Overnight, Sakuma’s biggest revenue engine was told to sit down and behave.
Exports dropped. Revenue fell. Margins got squeezed.
To survive, the company pivoted toward:
- Institutional sugar sales (Britannia, ITC type buyers)
- Maize procurement for ethanol manufacturers
- Domestic trade expansion
Smart move? Yes.
High margin move? No.
Institutional sales are stable but low margin. Maize needs working capital upfront. So margins stay thin, and working capital cycles stretch.
Meanwhile, the stock price kept melting like sugar in chai.
But here’s where it gets interesting — they raised equity, infused capital, reduced leverage, and are still rated BBB (Stable).
So is this a boring trader stuck in low-margin hell… or a quietly stabilizing commodity operator?
Let’s decode.
3. Business Model – WTF Do They Even Do?
Sakuma’s model is simple in theory and brutal in practice.
Core Business: Agro Commodities
- Sugar (major revenue driver)
- Pulses
- Rice, wheat, corn
- Oilseeds
- Cotton
- Spices
They buy in bulk. They sell in bulk. Margins are razor thin.
ICRA says sugar accounts for “almost entire revenue” in recent years. That’s concentration risk wearing a red shirt and waving at you.
Institutional Sales
After the export ban, they started supplying to large institutions. This business is back-to-back. No inventory risk.
Translation:
They lock in both
