Wednesday, May 20, 2015

SKM EGG PRODUCTS EXPORTS - RESULT UPDATE

SKM EGG PRODUCTS -reported its March quarter and full year numbers today.For the three months ended March , Company reported a topline of Rs.66 Cr v/s Rs.69 Cr and a net profit of Rs.7.8 Vr v/s Rs.3.8 Cr ( including other income - standalone basis) . For FY 2014-15 , company's topline is Rs.290 Cr v/s Rs.264 Cr and net profit improved from Rs.7 Cr to Rs.23 Cr .Full year EPS is Rs.8.85 . A tad lower profit in last quarter was mainly due to increased expense for employee benefits and provision for depreciation as per new standards. Company declared a dividend of 10 % after a gap of 5 years. Company is expected to announce their plans to achieve targetted sales within 6-9 months . Though the overall result is not bad , due to mismatch with expectation and reality of investors  , it already corrected more than 10 % . Long term investors can still hold it and  I believe this industry will further consolidate in another few years and it will emerge as one of the very few players in India in this business going forward.

30 comments :

  1. Thanks for your Updates sir on SKM Q4 result. Your comments are the positive for us to hold the stock for long term. Thanks again, Sir.

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  2. Dear VP Sir,

    Thanks for suggesting this gem, added more today. Please let me know your view on HFCL after the result

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  3. Thanks for ur analysis Sir.Holding my shares tightly.

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    1. As long term investors we need not panic in a company like this at this valuation. Till last year , it was a company written off by market participants but now it made around Rs.24 Cr profit v/s Rs.7 Cr which is not a small thing.. We can see many company's reporting doubled or trippled profits in bull market through window dressing . Here the money is genuine and using that they re- paid debt even before due date and now giving dividend . As Warren Buffet said “You only find out who is swimming naked when the tide goes out.” . I am happy to hold this for long term considering various positive factors which I expected to unfold in next few years.

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  4. Sir whether skm has received approval for relisting on bse ?

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    Replies
    1. It is there in press release , pls refer that

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  5. Sir because of hotel division losing 8 cr loss per year why they can't leave that hotel
    Or do u feel by saying hotel name is management eating that much amount I can't believe only one hotel losing that much amount
    Thank u

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  6. sir please tell that, what should be the tgt for nxt 2 to 3 mnths..

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    Replies
    1. Are you talking about INVESTMENT itself ?

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  7. Sir,
    Anything wrong in united drilling tools? The way promoters are acquiring shares.

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    Replies
    1. What is wrong in promoters acquiring shares ? . Didn't get your question.

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  8. Dear VPji..
    I have one query regarding IL& fs engineering. IRB Infrastructure Developers Limited business is also in the similar line of IL&FS. IRB profit margin is in the range of 45%~55%. No other listed player has this kind of exceptional profit margin; Even L&T is in the range of 15%~17%. Is this kind of margin possible by IL&FS in future?? What is the reason behind this.?? is it real??

    Thanks in advance..

    Regards,
    chetan Biluve

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    Replies
    1. IRB is specialising in Toll Road projects which is not strictly comparable with IL&FS Engineering .ILFS Transportation may be a more apt comparison

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  9. VP Sir what is your view on WANBURY results plz show some light

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    Replies
    1. Too early to comment about the direction of recovery

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  10. sir, what is your view on gujarat automotive gears ltd...thanks???

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  11. sir what is your view on patels airtemp march quarter result...i am holding it @ price of 139.thanks...??

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    Replies
    1. Considering the over all scenrio prevailing in the industry , result is very good.Hold it.

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  12. Dear Sir,Please post ur comment on the result of Pioneer Embroideries

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    Replies
    1. Company is in recovery mode , Hold it

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  13. Dear VP,

    Posting again, can you please confirm what is other income. Other income is very very high, is it exchange fluctuation? Pl. Reply

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    Replies
    1. Before posting again , as a share holder did you try to get a clarification from company side by contacting them ?

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  14. Any suggestion on your old recommended stocks

    1) Balrampur Chini
    2) Dhampur Sugar

    As per CMP they are same as suggested levels, but Is this the right time to buy sugar stocks?

    Thanks

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    Replies
    1. Sugar sector stocks are not a comelling buy at this point

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  15. Hi VP Sir , In pioneer results the exception loss is shown from past few years. Is it something they are doubtful to receive the money from the customers? In 2011 & 2012 seems to be money got received but then on it is negative. Is it something that is common to this business or one need to watch out for? Please advise

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  16. I believe they are in the precess of cleaning their balance sheet

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  17. Vp ji

    Can I enter skm at current levels for long term?

    ReplyDelete

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