SKM Egg Products - thinking out of the shell


(spiderman) #248

100 to 120 Severe Congestion zone. After that it can have a free zone till 225 ( Earlier High) Since 2015 scenario repeating without avian flu, we can be rest assure that this upsurge in USA egg powder prices which started last year will continue for next 2 years.

This is not a buy /sell call recommendation. Disc Invested with 5 to 10 Year view


(spiderman) #249

(Mridul) #250

Right…though is this rise sustainable? The United States had more than 385 million hens in March, the most in over a decade. Egg prices often rise in the weeks leading up to Easter, due to demand. With all those hens, there will be lots of eggs to be had. Temporary supply crunch might be due to adverse weather there in some US pockets.

On the other hand, in India, egg prices in summers are always the lowest. Last 15 days of March are the cheapest as far as egg prices are concerned. This will rise gradually in April/May as production decreases.

PS: We can’t compare the current situation to that of the Avian Flu outbreak back in 2015.


(spiderman) #251

With out any disease breakout we have seen this price rise.production is more or else flat. Most of the eggs gone to South korean Market were price realization is good. My bigger points US egg cycle is finished it bear turn and likely to go past 3 to 4 Dollars in next 2 Years. Wages are rising in USA nobody will bother abt increase in egg prices.
Even if the egg powder settles around 10 Dollars ( for Albumen) it is good for SKM eggs. And Domestically also Venkys managment told that input feed prices likely to be muted for next 6 months. So we can expect some lost shine to regain.


(zulfiqar) #252

This seems to be change in trend in egg prices, but stock didn’t budge at all in spite of record egg prices. Disclosure holding


(spiderman) #254

What will happen to egg powder prices when Egg prices are at all time high and inventory is down 50 Percent compared to YoY.


(NaMo) #255

(phreak) #256

Although Q4 poultry product exports have shown a good 25% growth (166.25 Cr vs 132.33 Cr)

30%20PM

For the whole year, the exports have grown only 4%

46%20PM

If the growth we saw in Q4 is something structural and not one-off due to easter and a salmonella outbreak, we should see that sustaining in Q1, FY18.

FY15 and FY16 numbers (during the avian flu in US) of 651 Cr and 769 Cr are quite some distance away.


(zulfiqar) #257

What source did u get the data?


(phreak) #258

The data is from Ministry of Commerce

http://121.241.212.143/principalcommditysearch.html

I have stored the data in my db and the screenshots are results from sql queries. MoC doesn’t group information by Financial year or quarters.


(NaMo) #259

From the above database of ministry of commerce, a search for poultry products export from Chennai and Tuticorin ports between January and March 2018 shows below result of 80 Cr export sales. Could we assume other income and domestic sales of 10 Cr. 4-5 Cr profit out of this would be nice.

No. PC Code Commodity Country Port Unit Qty Jan-2018 To Mar-2018 Value (INR)
1 E3 POULTRY PRODUCTS BAHARAIN IS TUTICORIN SEA 0 41553881
2 E3 POULTRY PRODUCTS COMOROS TUTICORIN SEA 0 4479266
3 E3 POULTRY PRODUCTS INDONESIA TUTICORIN SEA 0 32137547
4 E3 POULTRY PRODUCTS JAPAN CHENNAI AIR 0 8839972
5 E3 POULTRY PRODUCTS JAPAN TUTICORIN SEA 0 71903494
6 E3 POULTRY PRODUCTS MALAYSIA CHENNAI AIR 0 829321
7 E3 POULTRY PRODUCTS MALDIVES TUTICORIN SEA 0 96840802
8 E3 POULTRY PRODUCTS NETHERLAND TUTICORIN SEA 0 69398849
9 E3 POULTRY PRODUCTS NIGERIA TUTICORIN SEA 0 17051070
10 E3 POULTRY PRODUCTS OMAN TUTICORIN SEA 0 298522398
11 E3 POULTRY PRODUCTS PHILIPPINES TUTICORIN SEA 0 3617927
12 E3 POULTRY PRODUCTS QATAR TUTICORIN SEA 0 18397219
13 E3 POULTRY PRODUCTS RUSSIA CHENNAI AIR 0 10559
14 E3 POULTRY PRODUCTS RUSSIA TUTICORIN SEA 0 57443276
15 E3 POULTRY PRODUCTS SAUDI ARAB TUTICORIN SEA 0 15760675
16 E3 POULTRY PRODUCTS TAIWAN TUTICORIN SEA 0 11693281
17 E3 POULTRY PRODUCTS THAILAND TUTICORIN SEA 0 31818729
18 E3 POULTRY PRODUCTS U ARAB EMTS TUTICORIN SEA 0 24737055
19 E3 POULTRY PRODUCTS VIETNAM SOC REP CHENNAI SEA 0 21027658
20 E3 POULTRY PRODUCTS VIETNAM SOC REP TUTICORIN SEA 0 39980922
TOTAL INR 805,035,321

(arunkp) #260

(arunkp) #261

Today I saw BEST Eggs in one of the small retail department store in Kakknad - Kochi
I just inquired at the bill counter about the sales of these branded eggs.

They said that its pretty fast moving and the supplier comes every week refill the stack.
The eggs are of equal shapes and each have the expiry date printed.They have both brown and white eggs in the shelf.Prices are bit higher when compared to normal eggs.


([email protected]) #262

BEST eggs vertical is part of the privately held entity (SKM universal). Nonetheless it is great to know they have good market reach as Liquid eggs, egg panner etc are marketed n distributed by this privately held entity although produced by listed entity.

Liquid egg launched on 10th may is now available on bigbasket…


(arunkp) #263

([email protected]) #264

Got this delivered in a day by big basket (@bangalore)

If marketed well, can b a game changer for this tiny company. India is highly portien deficient and this product can fill that gap.


(Ramesh kumar) #265

Skm egg products press briefing on the occasion of egg products launch at Chennai.


(zulfiqar) #266

Still there is lot of confusion whether the launched product are under skm listed or unlisted mgt needs to clarify on it


([email protected]) #267

It’s very clear. It’s distributed n marketed by privately held entity while manufactured by listed entity.

What is not clear is the revenue sharing model. Need to get these details from MGT.


(Ramesh kumar) #268

No-one asked him about revenue sharing arrangements between listed and listed entities or possible merger of the two.
In another video products are being presented under domestic portfolio which points to ownership of skm egg products. Also Shivkumar introduces himself as MD of Skm egg products at the launch event.
However the confusion will prevail until reported to bse/nse or clarified in Annual report.