1. At a Glance – The Omelette That Suddenly Got Michelin Stars
SKM Egg Products Export (India) Ltd is not your average “poultry” stock. This is not about chickens running around farms; this is about ₹1,064 Cr market cap, ₹202 share price, ₹204 Cr quarterly revenue, and a Q3 FY26 PAT of ₹30 Cr, up a jaw-dropping 299% YoY. Yes, eggs cracked the profit shell wide open.
The stock has doubled in the last one year (+98%), ROCE stands at 13.1%, ROE at 11.8%, and EBITDA margins are flirting with 20%+ in the latest quarter. Exports form 58.5% of revenues, making SKM less “desi anda” and more “global protein commodity”.
Debt is present (₹172 Cr), but interest coverage of 8.8x suggests lenders are sleeping peacefully. The valuation at 19.4x P/E is neither dirt cheap nor irrationally priced for a company that just delivered a near-triple profit jump.
So the big question: Is this a one-time protein shake, or has SKM permanently upgraded from boiled egg to gourmet soufflé?
2. Introduction – From Farm Eggs to Pharmaceutical Protein
SKM Egg Products was incorporated in 1996, long before protein became a lifestyle choice on Instagram. Back then, eggs were just breakfast. Today, they are nutraceuticals, bakery inputs, pharma ingredients, and QSR essentials.
The company operates as an Export Oriented Undertaking, and that matters. SKM doesn’t depend only on Indian demand cycles; it dances to the tunes of Japan, Russia, Europe, Africa, and increasingly newer geographies.
What changed the game is SKM’s shift from plain vanilla egg powder to high-value blends—high-whip albumen, bakery mixes, spray-dried blends, and protein supplements. These are not commodities. These are margin-protected products.
But before we get carried away, remember this is still an agri-linked business. Bird flu, feed costs, export bans, currency swings—this company lives dangerously. The FY25 volume
drop from 10,455 tons to 9,620 tons is proof that volatility hasn’t gone anywhere.
So yes, growth is exciting. But this is not Maggi. This is more like sushi-grade raw material—high quality, high risk.
3. Business Model – WTF Do They Even Do?
Let’s simplify it for a lazy but smart investor.
SKM breaks eggs. Literally. About 1.8 million eggs per day. Then it dries them, liquifies them, blends them, fortifies them, and sells them to companies that don’t want to touch a real egg ever again.
Core Verticals:
- Egg Powders – Whole egg, yolk, albumen. Used in bakery, pasta, noodles, meat products, mayonnaise.
- Liquid Egg Products – For industrial kitchens and QSR chains.
- Bakery Mixes & Spray-Dried Blends – Egg + sugar + flour = convenience + margins.
- Protein & RTE Products – Egg Pro Sports Plus, Egg White Cubes.
- Shell Eggs – Sold domestically under “Best” branding.
What gives SKM an edge is vertical integration. About 90% of egg requirement is met internally via owned and leased farms with ~0.6 million layer birds. This controls quality, reduces dependency, and stabilizes input risk—at least on paper.
Still, ask yourself: How many companies do you know that control protein from chicken butt to Japanese bakery shelf?
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