At a Glance
SKM Egg Products just cracked open its Q1 FY26 numbers and—surprise!—the omelette didn’t flop. Sales jumped 49% YoY to ₹176 Cr, while net profit sizzled at ₹16 Cr, a 34% spike. EPS fried up to ₹6.18. Stock at ₹292 still trades at a P/E of 19.8x, giving poultry investors something to cluck about. Final dividend? ₹1.50 per share. Not bad for an egg business in a world that can’t decide between vegan and keto.
Introduction
Eggs are simple. SKM’s earnings? Not so much. From being an export-focused EOU making liquid egg mixes for bakeries and pharmaceuticals, this company has turned into a profit machine—at least when raw material prices don’t spoil the recipe. Q1 FY26 showed strong sales momentum after a patchy FY25, proving that even in tough markets, scrambled strategies can still yield sunny-side-up results.
Business Model (WTF Do They Even Do?)
- Core Business: Processing and exporting egg products (powdered, liquid, albumen, yolk blends).
- End Users: Bakery, confectionery, noodles, meat products, mayonnaise, pharmaceuticals.
- Certifications: ISO, BRC, HALAL – basically the Michelin stars of food safety.
Roast: They turn eggs into everything except magic potions, yet still have to fight margin volatility like it’s a food fight.
Financials Overview
Q1 FY26
- Revenue: ₹176 Cr (↑49% YoY)
- Operating Profit: ₹25 Cr (OPM 14%)
- PAT: ₹16 Cr (↑35% YoY)
- EPS: ₹6.18
FY25
- Revenue: ₹498 Cr
- PAT: ₹35 Cr
- ROE: 11.9%
Comment: YoY growth is egg-cellent, but quarterly volatility remains.
Valuation
- P/E Method
- EPS TTM: ₹14.7
- Sector P/E: 18x
- Value ≈ ₹265
- Book Value
- BV: ₹115
- CMP/BV: 2.54x
- Value ≈ ₹230
- EV/EBITDA
- EBITDA TTM: ₹65 Cr
- Multiple: 10x
- Value ≈ ₹300
🎯 Fair Value Range: ₹230 – ₹300
CMP ₹292 → fully priced with little yolk left for upside.
What’s Cooking – News, Triggers, Drama
- Dividend: ₹1.50/share announced.
- Promoter Holding: Slightly up at 56.25% – promoters seem bullish.
- Growth Trigger: Expansion in pharmaceutical-grade egg products.
- Risks: Avian flu, feed cost spikes, currency fluctuations.
Balance Sheet
| (₹ Cr) | Mar 2025 |
|---|---|
| Assets | 494 |
| Liabilities | 217 |
| Net Worth | 303 |
| Borrowings | 149 |
Remark: Leverage manageable, reserves growing steadily.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 60 | 109 | 65 |
| Investing | -16 | -54 | -23 |
| Financing | -5 | 13 | -25 |
Remark: Healthy ops cash, investing outflows for expansion, debt reduction ongoing.
Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 11.9% |
| ROCE | 13.3% |
| P/E | 19.8x |
| PAT Margin | 9% |
| D/E | 0.49 |
Remark: Margins okay, valuation not cheap.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 662 | 701 | 498 |
| EBITDA | 144 | 151 | 57 |
| PAT | 76 | 85 | 35 |
Remark: FY25 was a downturn, FY26 Q1 hints at revival.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| SKM Egg Prod. | 556 | 39 | 20x |
| Venky’s India | 3,307 | 117 | 18x |
| HMA Agro | 5,133 | 87 | 18x |
| Ovobel Foods | 189 | 9 | 15x |
Remark: SKM trades at a premium P/E despite smaller scale.
Miscellaneous – Shareholding, Promoters
- Promoters: 56.3% (↑0.9% QoQ)
- FIIs: 0.3%
- Public: 43.5%
Observation: Promoter buying adds confidence.
EduInvesting Verdict™
SKM Egg Products is a niche exporter that has cracked the code of high-margin egg processing. However, volatile earnings and dependency on exports keep the risk omelette hot.
SWOT Quickie
- Strengths: High profit CAGR, quality certifications, export niche.
- Weaknesses: Small scale, earnings volatility.
- Opportunities: Pharma-grade products, domestic expansion.
- Threats: Bird flu, global demand shifts.
Final Word: A good stock for patient investors, but don’t put all your eggs in this basket.
Written by EduInvesting Team | 30 July 2025
SEO Tags: SKM Egg Products Q1 FY26 Results, SKM Eggs Analysis, Egg Export Industry India
