SKM Egg Products - thinking out of the shell


(Saji John) #84

Recommendation from Equitymaster


(Rohan_69) #85

But that has been a while. Why the buzz now there has to be some insider news. Other than that I was aware of the fact that Equitymaster recommended it, then it reached close to 70 and than languishing around 65-70. anyways I am just trying to decide whether this is a value based price spurt …


(bhavya) #86

Please paste the URL or matter


(gaurav.sun238) #87

Equitymaster recommend it on 11th Feb after market closed


(Manish) #88

Any projected target EquityMaster have mentioned ??
And yes what are the Fundamental arguments they have discovered for the sustained rally …
If someone may pls post


(Rohit Balakrishnan) #89

Both Venky’s and SKM moved. Maybe something structural has happened in the industry?


(spiderman) #91

When world over Billions of dollars are spent on Bio Security measures…Here is In Namakkal we have no history of Bird Flu. SKM is well placed in this globalized market. Lets see how they use this opportunity.

Through out Europe Japan Korea China and some part of asia is affected with Bird Flu.


(Rits) #92

Mehnaz Jee,

Your analysis once again proven correct… Thanks


(Mridul) #93

Just some simple correlation of egg price (Namakkal) with SKM numbers ( in understand that this is just one aspect here, and other things like international markets do effect the numbers here.

One can clearly notice that SKMs problems started starting q4 2016. Egg prices started rising from q3 2015. SO there is clear correlation here. They performed very well in 2015 owing to decent egg prices.


(vinay ambekar) #94

Why should egg be a cyclical product? Other than being a commodity and other than the sales and profits of SKM, is consumption of eggs so cyclical in nature? The performance has been affected by industry and co. specific issues like bird flu and (maybe) product recalls.


(Mridul) #95

Whatever little i have read about poultry farms, egg production is indeed cyclical (seasonality effect comes in). And yes, bird flu and international consumption patterns also effects this industry. But, there is a definite impact due to rise in egg prices on profits (evident from the image i posted in my earlier post)…No?.


(NaMo) #96

BSE will revoke suspension of SKM effective 30 March 2017. Please see below circular.
Promoters can now focus more on growing the business.
http://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20170322-19


(achal) #97

Hi Team

Just wanted to understand why BSE listing / trading is so imp thing when they are already trading on NSE in a regular manner?

What i can think is that if there are some investors who can buy / sell only on bse then they are stuck and for them it is a good thing if it starts trading on base. Other than that, are there any other benefits which might lead to stock moving up after listing?

This is just for my understanding.

Thanks
Achal


(spiderman) #98

GST rates on Egg inside shell- Nil

GST rates on Egg outside shell i.e Dried,egg yolk , powdered will attract 5 Percent.

MD Shree Kumar said, Liquid Egg have a big market in india. Can we expect them to start India operations soon.


(NaMo) #99

Topline of 58.55 Cr in Q4 shows third consecutive quarter of growth. However, profits remain a challenge mainly due to depressed global prices of Egg Powder. The company seem to have managed to hold on to the business from leading customers but with no profit. Net Working Capital Cycle has gone up from 56 days last year to 66 Days this year. The company is funding the working capital cycle through extended credits from creditors and through increase in Working Capital Loans. Even in this crunch situation, the company continues to maintain Cash & Equivalent of 17.52 Cr indicating that though the deal of acquiring Ovobel has not gone through, the process has not been aborted. Whether this is due to some legal compulsion or by choice of Management will be known only when the Annual Report provides an explanation on this.
It is tough to maintain faith when numbers are so disappointing but what I look at is that no other competitor from Europe or the US can have a cost structure more efficient then SKM and so they will be hurting much more than SKM. If SKM is able to retain customers, the profits will come once the glut in the market is reduced. As they say, in the forests of Africa, you only need to run faster than the slowest guy to save your life. However, It is tough to see our investment not doing well.


(Ravindra Singh) #100

do you have any update on conf-call with management, how we can discuss with management ?


(NaMo) #101

SKM Egg products is launching today a new product EGG PANEER for the domestic market. So they are not only targeting Bulk buyers like hotels and Restaurants but will also go to the end user. This product is getting them into B2C segment. When they say LAUNCH, they would have already tied-up with the Channel of Distribution. As of now SKM BEST EGGS are available in the reasonably large size hyper shops. I hope, the channel of distribution for these products will also be through at least one organised retail chain… May be D-Mart? I look at the shift in their focus on end-user is a big change in their approach to business. No company would make a change in their strategy just with one product. I`m sure there are series of products that they would have already developed, tested and are ready for launch. We will see more products flowing through this channel of distribution at frequent intervals - protein shakes, cake ready mix, there can be so many more products that would have value addition in excess of 500%… I repeat… Your potential for growth is only limited by your VISION of growth


(amit anam) #102

Hi, I dont think Dmart cater to selling of Non-Veg products.

Amit


(Ramesh kumar) #103

Found a dated article talking about egg paneer been introduced by the Department of Livestock Products Technology (LPT), Guru Angad Dev Veterinary and Animal Sciences University (GADVASU) and displayed during Pashu Palan Mela.

http://www.tribuneindia.com/news/ludhiana/community/egg-paneer-chicken-chips-to-tickle-your-taste-buds/211350.html

May be SKM eggs lapped it up from here and took the time to do feasibility analysis and create distribution chain before pulling the trigger. However, what we have heard till now is only news of launch of a single product with no details thereabout.

Uploading a picture I found on the net.


(NaMo) #104

SKM will be moved from T2T group to the normal B group effective 30 June 2017