Sakuma Exports stock doubles in 2024, plans to consider bonus share issue on July 1

As of Thursday, June 20, the Sakuma Exports stock price has gained nearly 100% year-to-date after recording a 4.3% rise in intra-day trade to hit the day’s high of ₹37.86 apiece on the NSE on Thursday.

The smallcap stock was in focus on Wednesday ahead of the company’s board meeting to consider the bonus issue. The board of directors of the company will meet on July 1, the sugar exporter informed the stock exchanges in a filing.

According to media reports, the company may issue up to 20 bonus shares for every 1 share held by existing shareholders, as it has surplus reserves of ₹700 crore.

In a stock exchange notification, the company said, “The meeting of the board of directors is scheduled to be held on Monday, 1 July, at 12:00 noon at the registered office of the company, inter-alia to consider and approve the proposal for the issue of bonus shares to the equity shareholders to further reward their trust and investment in the company.”

Sakuma Exports have had a strong run in the past couple of months. For the quarter ended March 2024, the company recorded a 157% rise in its consolidated net profit to ₹26 crore compared with ₹10.1 crore in the year-ago period. On a sequential basis, profit surged by over 300% compared with ₹6.45 crore in the quarter ended December 2023.

The jump in profit was despite a 50% decline in revenue from operations to ₹500.5 crore for the March 2023 quarter compared with ₹1,005.2 crore in the year-ago quarter. Sequentially, too, revenue dropped more than 35% from ₹777 crore in the December 2023 quarter.

For full fiscal 2023-24, Sakuma Exports’ net profit stood at nearly ₹40 crore on a revenue of ₹2,120.8 crore. The company had also recommended a final dividend of ₹0.05 per share while announcing its March quarter results.

Shares of Sakuma Exports are trading 3.91% higher at ₹37.74 apiece on the NSE at 12:45 pm.