Tuesday, January 27, 2015

SKM EGG PRODUCTS - RESULT UPDATE




SKM EGG PRODUCTS - reported its December quarter numbers today .Link HERE .Company reported a turnover of Rs.205 Cr v/s Rs.169 Cr and an EBIT  of  Rs.22.65 Cr v/s Rs.11.14 Cr . On one side company's other income increased and  on the other side it make higher provisioning for taxes including deferred tax. In nut shell , company already surpassed its full year targets in 9 months itself and expected to close this year with  Rs.23-Rs.25  Cr profit. Normally company's other income figures includes the income earned from sale of Egg Shells and other by products and export subsidy . We can't count it as a one off -event and almost repeatable in each year , though the quarter of accounting the same may different.Most importantly , company's finance cost reduced substantially in this quarter compared with last year and let us hope SKM will be debt free earlier than we anticipated .In short, Company is growing ahead of expectation and I believe one can surely hold it for long term . Considering its promoter quality and clear vision of management working with pre-fixed targets and swiftly beating the same ,If there is any correction due to over leveraged position near to result days , that should be an opportunity for genuine long investor's with bit higher risk appetite.

58 comments :

  1. Hello sir..
    Result are good. But why did the share value came down today, instead going up.

    If we say its over leveraged position near to result days, then how do we set the fair price?
    Sorry if my question is lame. But i m new to share market.
    Please post this comment and answer.
    I m sure there will be thousands of people like me who will have these questions in their mind.
    thanks

    ReplyDelete
    Replies
    1. For short term , it is all supply demand game . Why an Investor with long term view need to bother about that ? . We should look only at the business performance , other things will follow sooner or later

      Delete
    2. Dear sir,

      First of all, i am really thankful for your kind & directed guidance for the new comers like me..& taught how to analysis on fundamental basis...

      I request you to provise your valuable feedback on rajoo engineering as its eps also good & yoy results also looks good..hope to have your valuable feedback on the same....thx a lot..

      Delete
  2. Good results and good update thanks vp sir.... thanks for guiding us so nicely....

    ReplyDelete
  3. THe company has delivered a stellar set of results...debt reduction is excellent and highlights the strong cash generation...

    Correct me if i'm wrong, but the sale of egg shells etc should come as part of 'other operating income' in the revenue line itself and not as part of 'other income'..'other income' below the EBITDA line should include the forex gain etc...

    In any case, great result...and stock valuations now seem completely justified and further re-rating is on the cards...Russia operations will be an additional bonus whenever they start...

    ReplyDelete
  4. Dear Sir,
    Thanks a lot for recommending this wonderful Multibagger, may nature give everything to you sir. Thanks once again.

    ReplyDelete
  5. Yes sir,

    This is surely going to be a multi bagger like arrow coated, .
    Thanks for suggesting nice stock like this.

    ReplyDelete
  6. Hello VP sir,
    Thanks for your valuable updates on SKM Egg Product's Quarter results. I have been much awaited for your comment on its Quarter results.

    Thanks and regards,
    Gokul

    ReplyDelete
  7. Sir,good afternoon.I had asked you whether I can add Asian granito at current levels however I did not get any reply.pl advise

    ReplyDelete
  8. Dear Vp
    I know you haven't directly recommended South india paper mills.What are your comments about their results?
    Also do you think they will be able to expand as corrugated boxes will see enormous demand in coming years for packaging due to e commerce boom?

    ReplyDelete
    Replies
    1. South India Paper Mill reported an EPS of Rs.7 in 9 months against Rs.2.60 reported last full year. I think it is more than enough to support current market price

      Delete
  9. Fantastic !!! No doubt it's going to rock coming quarters...One of stock where it feels good when it goes down and gives opportunity to load more :)
    Many thanks VP sir!!

    ReplyDelete
  10. Dear VP,

    This is my first comment on your awesome blog. I have been reading all your archives for last 3 hours now. I'll say Great work.

    Talking about this multi bagger SKM, I have been watching this from the time of Diwali when it was around 30. I thought to time it and buy when it falls around 25, and ever since then I did not got my timing correct (Sigh!).

    Everyday I saw it making new highs and circuits. I did not entered assuming punters involvement. But, then it made a new move once again.

    Well I finally entered @166. And, from the day I bought it started moving down (SMILE).

    Any ways, I am cool with it as I am in no rush to square it off. I see you mentioned in one of your post that you have invested in the stock yourself.

    My question is do you still see value multiplying from current prices as well?

    Best wishes,
    Anuj

    ReplyDelete
    Replies
    1. Dear Mr Anuj

      We can very easily accuse 'Punters Involvement ' or 'Operator play' in any stock if we lost an opportunity in a stock due to lack of our study and enough due diligence. Share holders of SKM faced this criticism here and many other investor forums and message boards .Even some bloggers blindly written off this stock only because its yearly low was around Rs.5 and share purchase quantity of promoter from open market everyday was low . I hope , at least these skeptics are convinced by now to a certain extent. In the past ,we have seen many promoters posting good result in bull market by window dressing , but I strongly believe that the result posted by SKM is 100 % genuine and there is long way ahead for this company.

      Delete
  11. Dear Sir, while surfing on a website had found that long term debt of skm is going to be nil by march 2015.Is it possible? If yes then what is its relevance.

    ReplyDelete
    Replies
    1. Though the management of SKM is transparent more than enough , as minority share holders let us keep our limits and avoid pressurizing . If my understanding is correct , they are targeting debt free status ( long term ) by 2016 and not by 2015 . Considering the better performance , it may happen even earlier. They are well experience in poultry field and let they implement their business plans smoothly .

      Delete
    2. Due to preoccupation , blog ( including further comments ) will be updated only on 30/01 onwards.

      Delete
  12. Murugadoss RajapathyJanuary 27, 2015 at 8:39 PM

    Dear Mr. VP, can you give your view on Eveready Industries, strong last quarter, constantly growing midcap, new products, strong brands and market share.... Good to buy at CMP???, they have a little bit of debt though....your opinion is eagerly awaited.

    ReplyDelete
  13. Dear VP,

    can I enter the stock at this level ?

    ReplyDelete
    Replies
    1. I think ,what I suggested is clear from the above posting

      Delete
  14. Can we add shreyash shipping? ? What your suggestion??

    ReplyDelete
  15. Any views on Kopran at current market price of 54 ? Allotment of shares and warrents to promoters at 66 rs shows clear confidence of the promoters .

    ReplyDelete
    Replies
    1. Thanks a lot sir . If u can give some more updates on kopran . It will be very appreciated .
      Thanks . Ur student from Melbourne.
      Bhavdip

      Delete
  16. Sir,

    Post the results of Liberty Shoes - you have been mentioning that you are neutral on it.. What does neutral mean? Do you mean to say it is either a buy or a sell? Hope this gets posted. Thanks!

    Regards,
    Sarav

    ReplyDelete
    Replies
    1. Nothing special to comment .Take a call by yourself

      Delete
  17. Dear Sir, thanks for sharing another multibagger. Can you please provide your views on Shree Hari Chem? I am posting this query 2nd time.

    ReplyDelete
    Replies
    1. Many times in the past replied questions about this company - Not tracking it

      Delete
  18. Dear VP sir..I understand that SKM is running at full capacity operating 24X7 and meeting its order book...But for it to grow further it will need to expand its capacity which may not be easy and quick. Although they have indicated that they are willing to go through inorganic route, there may not be enough companies which follow standards like SKM does..So in light of that, Im trying to see if there is sufficient scope for growth beyond 35 crores annually in the next 2-3 years?

    ReplyDelete
    Replies
    1. As per my understanding , company is able to report Rs.325-330 Cr top line even with the current Capacity and we may fortunate to see the same by next FY. As per the information shared in last AGM , it is in the process of considering various options for capacity expansion and I am expecting some positive news about concrete plans within 6-9 months in this matter.I think , management is very calculative in the case of business expansion . It is expected to become a bank debt free ( excluding working capital debt ) company by this year itself and it can utilise next years cash flow for further business expansion without much stress in balance sheet .

      I strongly believe , company will achieve a top line of Rs.500 Cr in another three years backed by a strong balance sheet and the sincere efforts of the hard working of promoters with high ethics .Every chance to become a top class company in another three years from the small caps space but one need to show patience till then . It may also come back to the dividend paying company's list in this year itself .

      It short, SKM remaining as one of my high conviction stock idea with a three year time frame . Patience is the key here , I believe ,such a patience will be rewarded in due course

      Delete
  19. Thanks for your update. Shows your confidence in the management of the company. I believe that if the management is honest and dedicated sky is the limit for any company or business. I personally believe that SKM will touch greater heights in the near future.

    ReplyDelete
    Replies
    1. My post result views shared in the above reply.

      Delete
  20. Sir,

    What is your view on Adani power. I know that you recommended this in 2010. Please publish this comment and the reply

    ReplyDelete
  21. sir...avanti's de-listing from nse..wat u think..shud v exit nw from stock?

    ReplyDelete
    Replies
    1. Already requested to take profit from Avanti Feed

      Delete
  22. Dear VPji,
    Greetings to you. Sir I have been holding Nandan Denim since 2007. I am still holding it and have made decent earnings. Can you please share your views on the same Please.

    Regards,
    Laxmikant Mutha

    ReplyDelete
  23. Your view on Guj Auto Gears after the results

    ReplyDelete
  24. Hi VP, whats your view on Intrasoft Tech; only listed e-commerce company listed in India?

    ReplyDelete
  25. Another bumper results from excel sirji...Your comments please.

    ReplyDelete
  26. Hi, ur view on Rajoo Engineers after good December quarterly result?

    ReplyDelete
  27. Dear Sir,

    Any further comment on Panacea Biotec?

    Best Regards,

    ReplyDelete
  28. Sir,what is your current view on nathbiogen?

    ReplyDelete
  29. Sir,
    What is ur idea about DCM SHRIRAM LTD. @ 147/-

    ReplyDelete
  30. sir your views on TTK prestige, asian tiles, repro india, richa industries.

    ReplyDelete
  31. Sir. Thanks for your detail update on SKM which encourage us to put money in every fall rather exit from the stock.

    ReplyDelete
  32. What is your view on your old recommendation Dion global?

    ReplyDelete
  33. Sir,
    You are doing a great job in giving the genuine advise to the novice people like me. Like other I also Appreciate yuour work and would hope you continue with your good work for long..


    Recently , I have made investment in NEOCORP ...
    Looking at their quarterly results which are getting better and better with each quarter.
    Their pledged shares(promoters) is also coming down in each quarter(from 100% to 57% in recent quarter)

    Can you share your views on this company ?


    ReplyDelete
  34. Dear VP Sir,

    Can I still buy and hold SKM eggs at CMP of 150-155 range.

    ReplyDelete
  35. Thanks a lot Sir for suggesting us such a multibagger . May god bless you !!

    ReplyDelete
  36. Dear Vp sir
    I am long term investor for GENNEX LABORATORIES LIMITED
    Please can you give your views on it i have asked my good ppl in mmb who invest fundamentally and tech said it is sound for long term
    Pls share your views
    And any other good scrpit you make advice having little price and can buy in deep with long term views of 1 or 2 years ......

    Thank you sir
    Kind regards
    Sonu

    ReplyDelete
    Replies
    1. Not interested to recommend any stock to my readers if the promoters are selling and exiting on a regular basis from their own company .

      Delete

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