The price movement here has been extremely sharp and difficult to understand. The B2C piece is something far in the future and as conservative investors we should perhaps not take that into account. There are both market risks and execution risks involved.
Coming to the egg powder business, which it exports - the rise in egg prices is a very big negative if I understand the business correctly. The end market for its products is global, which is still recovering from the lows. Thus, realizations in this market will not be very high. To top it, the domestic egg prices are on a tear, given these are two independent cycles, SKM will find it very tough to pass on prices in the international market for their egg products, especially in a market where supply, though declining is still high.
The gross margins should be severely impacted in this quarter too. I am not really sure what am I missing on this.
I don’t think B2C should be really ascribed any value at this point of time, its more of an optionality
Disc: Tracking, but not invested