Thursday, 16 October 2014

VALUE PICK - SKM EGG PRODUCTS EXPORT (INDIA) LTD

About The Company

SKM Egg Products Export (INDIA) Ltd. is a  Tamil Nadu based company exporting a range Egg Products to Europe, Japan and Asia.

Company is having the largest egg processing plant in Asia with a capacity of 1.8 Million eggs per day.

Their poultry farm is ISO 22000 certified. Bio-security is maintained and poultry farms are registered under establishment as per the norm of European Union. 
Their products are mainly used by various companies for Bakery, Confectioneries, Noodles, Pasta, Meat, Fish, Mayonnaise, Salad Dressing & e.t.c.
The Ace Investor - Value Pick
The stock is currently trading on the NSE at 47.90, Recently it has seen huge buying interest as the company has got an approval from Russian govt.and their products are now said to be in trial phase before they actively start exporting to Russia, The company has plans to tap various untouched markets other than Russia where the demand for the products are high but availability is an issue.

The company reported a topline of Rs 237 crores and a bottomline of Rs 6.67 crores last FY, The company has reduced the Debt from about Rs 90 crores in FY11 to about Rs 60 crores in FY14.

Though the stock might look expensive looking at the P/E of 14.23 there is a huge scope for the earnings to boom soon as demand for food items are expected to increase further and if Russia has given the nod there are certainly many other countries which the company is going to tap, Given the declining debt and promoter stake of 52.36% this stock is a clear-cut long-term buy.

Long-Term investors should latch on to this hidden gem with a target price of Rs 180-220 in next 3 years.

65 comments:

  1. Replies
    1. I am not a fan of retail sector, and with ongoing and upcoming e-commerce boom retail sector will see further crunch.


      There will be time in India when even groceries will be bought online with the smart-phones.

      Avoid investing in V2 Retail.

      Delete
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    4. If you will write politely i won't delete.
      And V2 Retail is not selling on SnapDeal, It is selling on Ebay since a long time without any great value addition.

      Its Kolkata stores were shut down after the products were found to be fake (perfumes,trolleys e.t.c)

      Delete
    5. My Appologies...didn't wanted to hurt anyone..

      They sell on shopclues and ebay...and this link talks about their future plans of e commerce

      http://retail.economictimes.indiatimes.com/news/apparel-fashion/apparel/former-vishal-retail-becomes-ebidta-positive-plans-to-enter-ecommerce-in-next-six-months/36355987

      Could u pls post any link or more info on the shitdown in kolkata for fake products?

      Delete
    6. Although the link has management stating "We have learned from our previous mistakes and have been able to rebuild a profitable business,"

      The recent quarter results are really not stable, Dec 13 qtr Profit of 3.26 crore, Mar 14 quarter Loss of 10.10 crore, June 2014 quarter Profit of 1.45 crore, Let us wait for Sep results to be announced to see if it has seen any great improvement or not.

      Is it not a known fact that Mr Agarwal cooked up the books when it was Vishal Retail?

      Regarding the fake products, As of now i do not have a concrete link but here is some forum discussion which shows that others too know about the fact that Vishal Retail was caught selling fake products.

      http://www.theequitydesk.com/forum/forum_posts.asp?TID=962&PID=99144

      Delete
    7. i'm sorry but the link doesn't say anything about selling fake products...moreover its a blog and nothing is on facts...

      Agree they are shaky but making an empire again falling two times in this competitive world shows the strength of the promoters and value of the business.

      IMHO we should not outrightly reject them!

      Delete
  2. Your view on spicejet

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    Replies
    1. Avoid spicejet, airlines world over have underperformed and will continue to do so.

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  3. Replies
    1. HOLD... stock still cheap compared to other shoe companies.

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  4. Sir Can it b compared with venkys.

    ReplyDelete
    Replies
    1. No, venkeys has wide range of products while SKM only has egg powder, liquid eggs and baking mix.

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    2. So you consider venkys as best compared to SKM or one should Buy SKM only.

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    3. Venkys is expensive and not comparable to SKM, Go ahead buy SKM.

      Delete
  5. Sir can we enter in morepen lab at this level around Rs.12 ?

    ReplyDelete
    Replies
    1. I prefer, SKM, Prime Property, Ybrant over morepen for long-term, If you want to gamble then Commex is good one!

      Delete
  6. Your views on talbros auto and lanco infratech at cmp

    ReplyDelete
    Replies
    1. Not tracking talbros, Don't buy lanco.

      Delete
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  8. What is the future of kopran after 2 years? May hold this?

    ReplyDelete
  9. Sir whts your view on Premier Explosives and Keltech Energies. Both are in same sector. I want to buy one of them. Please share your valuable views in detail on both or provide some link (except co's website) to know about them in detail. thanks

    ReplyDelete
  10. Trading now at 57.95, Russian business has not started yet.
    Once exports to Russia starts you will see significant positive in earnings, that's why its a long-term gem!

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  12. Sir I am from erode,Tamilnadu near SKM company. Very valuable one.Its your best rocking call non stop UC until this month end.Thank u sir

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  13. Super blog
    making huge profit in commex and skm thanks a zillion sir

    ReplyDelete
  14. I have 16000 spicejet @35/-holding since last 3 years .Pls suggest whether i convert it in other stock to cover loss and opportunity loss or remain in this stock...pls advice brother

    ReplyDelete
    Replies
    1. As i have stated earlier, I have dislike for Airline stocks.
      But i am not tracking spice-jet personally.

      You are having a loss of Rs 3,36,000.00 in this, Cannot ask you to book such a huge loss.

      Delete
  15. Dear sir
    what is your view on Nath bio genes and Arrow coated products future prospectus?
    looking for your valuble comments
    regards

    ReplyDelete
    Replies
    1. Nath bio genes i have personally bought around 70 and sold around 150... i still have some holding which i will keep for long-term, If you are in good amount of profits book it partially.

      for Arrow Coated too book profits partially.

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  16. Replies
    1. Thanks nirav, wish the same to you and your family!

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  17. dear sir,
    SKM was triggering every day with UC. I have brought at 50.20 /- could you please suggest for the future of the holding these shares?
    regards

    ReplyDelete
    Replies
    1. We posted on the blog on 15th October and on 16th October stock made a low of 48.00 so it was available to buy at recommended price and now trading at 63.80 up 32.91% so the present and future both are super bright for the stock, Just stay long and don't sell a single share!

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  18. Hi if you had to buy nath bio genes and aimco which one will u prefer at current market price for long term multibagger returns.

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  19. Dear Ace
    What is your view on Future Consumer Enterprise Ltd at CMP 11/-.As co is going to Start Food Court in its business.can re rating considerds at this stage.Pls advice ur view for investment purpose.Also on Fortis Healthcare at cmp...Thanx

    ReplyDelete
    Replies
    1. Though the company is going to start its Food Court business, it is debt ridden and a loss making one so AVOID it.

      Avoid fortis too and go for Indraprastha Medical in healthcare sector.

      Delete
  20. Dear Sir

    what is your view on Fedders LLyoid stock, can we enter at 65/- please offer your comments
    regards

    ReplyDelete
  21. Dear Ace
    what is your view on Panasonic energy India co Ltd, shall we hold or exit at CMP levels? Please suggest.
    thanks in advance,
    Rao

    ReplyDelete
  22. Dear Ace,
    Can you please comment on Arvind Remedies invested heavily @44.60 which was recommended by well known brokerage houses giving targets to 70-120. In my home work I found that it is very much undervalued pharma stock with 4.43 with profit growth of 70% for last five years. I see it as safe bet and debt/equity ration of 2.05
    Please wirte your opinion on this. It will help me alot.

    ReplyDelete
  23. Dear Ace
    what is your view on Nath Bio gene stock future prospectus? By the way when are you going to publish new post in blog.
    kind regards

    ReplyDelete
    Replies
    1. Sir, as replied to someone else already we are holding Nath Bio for long-term, future prospects are good.

      Very soon we will be posting a new call, Maybe this friday morning.

      Delete
    2. Dear Ace
      Thanks for your reply.
      By the way what is the prospectus of EPC irrigation scrip. could you please advise?
      best regards

      Delete
    3. sorry, not tracking epc irrigation

      Delete
  24. Hai Ace
    Thanks for your kind support for small investors and guidance on the scripts.

    at present scenario can we buy La Opala Rg @ 420/-

    please suggest

    regards

    ReplyDelete
    Replies
    1. i think it has moved up a lot.. one should avoid getting into it now

      Delete
  25. Hi Sir,

    Can you please suggest a good pointto enter SKM? Has zoomed in the past few months but seeing some correction. So might just get an entry point. Long term hold 3-5 years.

    Regards,
    Adwait

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  26. Can one still look into invest in this stock. At this stage which will be a better investment - Dynemic or SKM ?

    Thanks.

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  27. Sir, SKM Egg is now falling. So your view? Exit or buy on dips?

    ReplyDelete
  28. Why there is no movement in stock? nothing is happening

    ReplyDelete
    Replies
    1. Market waiting for more growth i feel.

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