1. At a Glance
Sumuka Agro is a micro-cap FMCG company that’s not trying to compete with Nestle or Britannia… yet. Instead, it’s quietly growing in the niche world of dry fruits, namkeen, spices, and ready-to-cook packaged foods. Behind its ₹224 price tag hides a compounding story with a 164% 5-year sales CAGR and 209% 5-year profit growth. Snacky returns? Maybe.
2. Introduction with Hook
Imagine if your favorite dry fruit gift box from Diwali decided to list on the stock exchange. That’s basically Sumuka Agro – a company that turned badam, pista, and hing into a multi-crore revenue stream.
- 5-year profit CAGR of 209%
- ROCE of 22.7% and ROE of 19.1%
- Promoter holding? A slightly worrisome 27.71%, with FII’s holding 12.89% (as of March 2025)
3. Business Model (WTF Do They Even Do?)
Sumuka Agro is into:
- Retail and franchise operations
- Trading & distribution of dry fruits, namkeen, ready-to-cook foods, and spices
- Operates under a packaged food D2C model — primarily online
- Revenue channels: B2B, e-commerce sales, retail outlets, and third-party platforms
It’s basically the kirana store turned digital.
4. Financials Overview
Revenue growth:
From ₹0.17 Cr in FY14 to ₹62.3 Cr in FY25. That’s not a typo.
Net profit:
Turned from -₹0.32 Cr (FY18) to ₹2.74 Cr in FY25
Key Metrics:
| Metric | FY25 |
|---|---|
| Revenue | ₹62.3 Cr |
| EBITDA | ₹4.07 Cr |
| PAT | ₹2.74 Cr |
| OPM | 6.53% |
| EPS | ₹3.86 |
| ROCE | 22.7% |
| ROE | 19.1% |
5. Valuation
Sumuka trades at:
- P/E: 56.4
- P/BV: 9.85
- Mcx: ₹159 Cr
Valuation Range:
Given the ROCE/ROE profile, growth velocity, small base, and niche product focus:
- Conservative FV: ₹160–₹180 (based on 35x normalized FY26 EPS)
- Optimistic FV: ₹250–₹275 (if margins expand and FY26 PAT crosses ₹5 Cr)
Still, proceed with chutki bhar of salt. Or hing.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 Results Awaited – 48-hr trading window shut post July 1
- FIIs Hold 12.89% – unusual for a ₹150 Cr market cap company
- FY25 Profit – ₹2.74 Cr, even after exceptional items
- No Related Party Transactions disclosed — SEBI clean chit style
Potential Triggers:
- Expansion of retail outlets/franchise
- Cross-border online distribution
- Brand tie-ups in snack/retail
7. Balance Sheet
| Item | FY25 |
|---|---|
| Equity Capital | ₹7.11 Cr |
| Reserves | ₹9.05 Cr |
| Total Borrowings | ₹4.53 Cr |
| Total Liabilities | ₹34.17 Cr |
| Total Assets | ₹34.17 Cr |
Takeaway: Improving reserves and moderate debt = relatively clean books.
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Flow |
|---|---|---|---|---|
| FY23 | -3.34 | -1.12 | 4.79 | +₹0.34 Cr |
| FY24 | -2.32 | -0.02 | 1.87 | -₹0.46 Cr |
| FY25 | -4.09 | -0.02 | 3.83 | -₹0.28 Cr |
Note: Working capital is a vampire. Despite PAT, operating cash flow is weak.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 22.66% |
| ROE | 19.06% |
| Debtor Days | 176 |
| Inventory Days | 11 |
| Payables Days | 63 |
| Cash Conv. Cycle | 124 Days |
Verdict: Operationally profitable, but high receivables remain a drag.
10. P&L Breakdown – Show Me the Money
| FY | Revenue | EBITDA | PAT | EPS | OPM % |
|---|---|---|---|---|---|
| FY23 | ₹27.88 Cr | ₹3.16 Cr | ₹2.32 Cr | ₹3.26 | 11.33% |
| FY24 | ₹54.95 Cr | ₹7.06 Cr | ₹4.26 Cr | ₹5.99 | 12.85% |
| FY25 | ₹62.3 Cr | ₹4.07 Cr | ₹2.74 Cr | ₹3.86 | 6.53% |
Note: While revenue rose, margins dipped in FY25. Raw material inflation?
11. Peer Comparison
| Name | P/E | ROCE | OPM | PAT (Cr) | Mcap (Cr) |
|---|---|---|---|---|---|
| Nestle | 74.8 | 95.6% | 23.6% | ₹3095 | ₹2.3L Cr |
| Britannia | 63.1 | 53.0% | 17.7% | ₹2196 | ₹1.3L Cr |
| Mrs Bectors | 73.6 | 16.4% | 12.7% | ₹121 | ₹8.9K Cr |
| Gopal Snacks | 80.4 | 16.7% | 7.1% | ₹54 | ₹4.3K Cr |
| Sumuka | 56.4 | 22.7% | 6.5% | ₹2.74 | ₹159 Cr |
Verdict: Valuation is stretched, but potential lies in scaling and ROCE strength.
12. Miscellaneous – Shareholding, Promoters
- Promoters: 27.71%
- FIIs: 12.89%
- Public: 59.41%
Concern: Promoter holding is low. FIIs unusually high for this size. Watch out.
13. EduInvesting Verdict™
Sumuka Agro is what happens when a snacks business accidentally becomes a listed compounding machine. The growth story is undeniably solid. But the runway ahead depends on two big things: scaling logistics and managing working capital.
The fundamentals are slowly moving from “chawl wala kirana” to “metro mall shelf”. Will they become the Patanjali of dry fruits or fade like a forgotten packet of farsan?
Definitely worth tracking, but treat it more like a masala-infused SIP candidate than a momentum rocket.
Metadata
– Written by EduInvesting Team | July 13, 2025
– Tags: FMCG, Microcap, Dry Fruits, Retail Expansion, Smallcap Food Stocks
