SKM Egg Products - thinking out of the shell

Highly commoditised business will it be worth investing, ur take please.

May be not. It depends. The fact that quite a few metal companies trade in the market reflects that certain set of investor find value in buying those. It depends on everyone’s investment style, risk appetite.

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Thanks that’a a very good observation.

My only concern here , topline isn’t showing signs , that it’s gonna bloom, there isn’t any gradual increase in topline as well.

Well it remains to see how the capex, of 70 odd cr, infuses some additional topline over FY25.

Stock is trading at intresting valuations, if we assume growth & margins are gonna come from capex.

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That means you are okay with cycles,
Difference between steel and this is , commodity they are in which is highly perishable, if they make powder also birdflu like issues come at regular intervals, risky bet.

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Generally I hate cyclicals , u never know when u get caught at the wrong end of the cycle.

Plus post going through their past quarters, I don’t see huge fluctuations in terms of topline as is in case of most cyclicals, metals etc.

I don’t think this counter can be purely categorised into pure cyclical plays.

Just my observation, I could be wrong.

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Hi, has anybody done a comparative study of Ovobel and SKM?

NIA_SKM vs Ovobel short note.pdf (559.6 KB)

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  • The stock is trading very close to the bottom in terms of historical PE
  • In last 5 years, instances of EPS decreasing but the stock did not fall in proportion due to PE correction
  • In my opinion this gives a margin of safety from any EPS fall
  • Now the question how much is potential upside

Disc: Studying, close to taking a position

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How come Venkys india leader in poultry is not able to perform but SKM performing very good.
Both work in same industries and both have same material cost

So, grateful, this is really exhaustive. :pray:

I suppose the charts are of Ovobel?

Charts are for SKM Egg products

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Looks like a competitor for SKM

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I have gone through the video; it was impressive their strategy.
However, do consider their target audience.
They are targeting the people who are ready to pay a premium for hygiene, packaging, and branding.
Their products are more towards the ready-to-eat segment.
I don’t think those are a competitor for SKM since their target audience is only at metros as of now at least.
Maybe if they start looking at Tier II and below cities and exports, then they turn to competitors, and I believe it may take a while.
But the main goal is that they want to target the unorganized more than the organized as per my understanding.

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Whats encouraging it - The market size is 90,000 Cr. (from the heading at least). SKM’s sales is only 701 Cr. for last year. The market size is big. And above that, SKM with lots of efforts have secured the approvals to export to certain countries.