SKM Egg Products Export (India) Limited

Consumer Defensive — Packaged Foods · NSE

₹208.00−₹2.97 (−1.41%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

The 60-second version of SKM Egg Products Export (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

SKM Egg Products Export (India) Limited produces and sells eggs and egg products in India, Japan, Russia, Europe, and internationally.

IndustryPackaged Foods

SectorConsumer Defensive

Employees253

Annual revenue₹768 Cr

How does it make money?

Turns over ₹768 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹24 left at the operating level before interest, tax and depreciation. Each of its 253 employees supports ₹3.04 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin24.5%

Net margin13.5%

Revenue / employee₹3.04 Cr

Who are its competitors?

The closest listed comparisons in its industry are NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD, TATA CONSUMER PRODUCT LTD, DABUR INDIA LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

NESTLE INDIA LIMITEDP/E 59.8x · ROE 79.9%

BRITANNIA INDUSTRIES LTDP/E 44.1x · ROE 51.0%

TATA CONSUMER PRODUCT LTDP/E 59.3x · ROE 7.5%

DABUR INDIA LTDP/E 34.7x · ROE 17.2%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 32.5%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 26.2% against a peer median of 51.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE32.5%

ROE26.2%

Peer median ROE51.0%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +16% while net margin moved +18% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+16%

Margin effect+18%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.12 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

70/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

79/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

9.8x

3Y Median

10.7x

40 monthly readings · mean 15.9x · range 5.0x–44.6x

Sector Median

51.7x

median of 4 sector peers

🟡Currently trading close to its 3y median of 10.7x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 81% below the peer median of 51.7x.

vs. its own history

Fair

10.7x median over 40 months · -8%

vs. sector peers

Cheap

51.7x median of 4 peers · -81%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

9.8x

P/B

2.77x

EV/EBITDA

6.1x

PEG

0.90

Dividend Yield

0.60%

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 21.6% to 24.5% over 3 years.
Cash generation is improving
Free cash flow is up 20% over 3 years.
High return on capital employed
ROCE of 32.5% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Debt is rising
Total debt is up 40% over 3 years — worth checking what it funded.
Return on equity is falling
ROE has dropped from 39.0% to 26.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 48.6% to 32.5% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 62% against revenue growth of 16% — customers are taking longer to pay.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Debt is increasingFinancial
Total debt is up 40% over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 62% against revenue up 16% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 32.5% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 21.6% to 24.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 81% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹38 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 62% against revenue up 16%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 5.1% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 39.0% to 26.2%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 22%✓ 24.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 5.1% CAGR
Latest reported year was 4.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹38 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 29%✓ 32.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 4 neutral · 0 weak

Market Cap

₹1,097 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.8x

Cheap

Cheap against the generic band

P/B Ratio

2.77x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹21.15

Profitable

Profitable on a per-share basis

ROE

26.2%

Strong

Strong capital efficiency

ROCE

32.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.36x

Low

Conservative leverage

Revenue Growth (YoY)

4.9%

Modest

Modest growth

Profit Growth (YoY)

46.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.60%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹38 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹208

Operating Margin

14.8%

Average

Average margins

Net Margin

14.3%

Good

Strong bottom-line conversion

Current Ratio

2.86

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.12

Defensive

Steadier than the market

52W Range Position

28%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

214.9 / 238.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹662 Cr	₹701 Cr	₹498 Cr	₹768 Cr	+5.1%
EBITDA	₹143 Cr	₹164 Cr	₹90 Cr	₹188 Cr	+9.6%
EBITDA Margin	21.6%	23.3%	18.1%	24.5%	—
PAT (Net Profit)	₹76 Cr	₹85 Cr	₹35 Cr	₹104 Cr	+11.0%
EPS	₹14.42	₹16.22	₹6.57	₹19.7	+11.0%
ROE	39.0%	30.8%	11.4%	26.2%	—
ROCE	48.6%	36.1%	15.0%	32.5%	—
Total Debt	₹102 Cr	₹146 Cr	₹149 Cr	₹142 Cr	+11.8%
Free Cash Flow	₹32 Cr	₹47 Cr	₹32 Cr	₹38 Cr	+6.4%

🟢 Revenue has grown at 5.1% a year over 3 years.

🟢 EBITDA has grown at 9.6% a year over 3 years.

🟢 EBITDA Margin has risen from 21.6% to 24.5% over 3 years (+2.9 pts).

🟢 PAT (Net Profit) has grown at 11.0% a year over 3 years.

🟢 EPS has grown at 11.0% a year over 3 years.

🔴 ROE has fallen from 39.0% to 26.2% over 3 years (-12.8 pts).

🔴 ROCE has fallen from 48.6% to 32.5% over 3 years (-16.2 pts).

🔴 Total Debt has grown at 11.8% a year over 3 years.

🟢 Free Cash Flow has grown at 6.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹595 Cr

Total Liabilities

₹200 Cr

Total Debt

₹142 Cr

Cash & Equivalents

₹93 Cr

Operating Cash Flow

₹53 Cr

Capex

-₹14 Cr

Shareholding (proxy)

Institutional Holding

0.5%

Insider Holding

61.0%

Corporate Actions

Dividend Rate

₹1.25

Ex-Dividend Date

11 Sept 2026

Peer Comparison

Company	P/E	ROE
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%
TATA CONSUMER PRODUCT LTD	59.3x	7.5%
DABUR INDIA LTD	34.7x	17.2%

Recent News

2 mixed4 general

SKM Egg Products Export Share Price

Upstox, 16 Oct

SKM Egg Products Export (India) Ltd is Rated Hold

MarketsMojo, 17 Oct

Impressive Earnings May Not Tell The Whole Story For SKM Egg Products Export (India) (NSE:SKMEGGPROD)

Simply Wall Street, 30 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

SKM Egg Products Export (India) Share Price Forecast to 2030

Univest, 29 Jul

SKM Egg Products (SKMEGGPROD) Gains 2.26% to ₹214.8 as Stock Approaches Resistance Zone - Dynamic Hedging

https://www.siam.in/, 07 Oct

SKM Egg Products Export Q1 Results: Realizations Rise To ₹770, Feed Costs Press

scanx.trade, 31 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong13.9/20

🟢Financial HealthStrong17.8/20

🟡GrowthModest10.4/20

🟢ProfitabilityStrong10.4/15

🟢ValuationAttractive10.4/15

🔴RiskHigh4.4/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 22%24.5%
✓Revenue growth stays above 4% a year5.1% CAGR
✓Free cash flow remains positive₹38 Cr
✓Debt / EBITDA stays below 2x0.8x
✓ROCE stays above 29%32.5%