SKM Egg Products Export (India) Ltd. (SKMEGGPROD) AI Stock Analysis

• Market Cap: ₹8.16B
• Dividend Yield: 0.36%
• Average Volume (3M): 13.30K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 1.01
• Revenue Growth: 12.43%
• EPS Growth: 29.17%
• Country: IN
• Employees: 229
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 5.70
• Shares Outstanding: 52,660,000
• 10 Day Avg. Volume: 9,528
• 30 Day Avg. Volume: 13,298
• PEG Ratio: -0.23
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 14.62
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ₹167.00 ▼(-55.41% Downside)
• Action: Reiterated Date: 01/06/26
• Date: Action: Reiterated 01/06/26

The score is primarily supported by solid underlying financial health (strong equity position, managed leverage, improving margins), but is held back by weak technical conditions (price below key moving averages with negative MACD and oversold momentum). Valuation is reasonable on earnings, though the low dividend yield provides limited additional support.

Positive Factors

Strong balance sheet and moderate leverage

A high equity ratio and low debt-to-equity give the company durable financial flexibility to withstand demand shocks and finance working capital for export-led sales. ROE near 11.4% shows the business generates acceptable returns on capital, supporting long-term stability and investment capacity.

Solid revenue growth with improving gross margins

Sustained revenue growth paired with a materially improved gross margin indicates effective pricing and cost control at the processing level. For a B2B ingredient supplier, steady top-line expansion and healthier gross margins support durable customer contracts and scale advantages that strengthen competitive positioning.

Strong operating cash generation

Operating cash flow nearly double reported net income demonstrates robust cash conversion from operations. This persistent cash generation underpins working capital for exports, funds maintenance capex, and reduces reliance on external financing, supporting sustainable operations over the medium term.

Negative Factors

Softening EBIT margin

A declining EBIT margin signals rising operating costs or pressure on operational efficiency. For a processing business with limited pricing power in commoditized ingredient markets, sustained compression at the EBIT level would erode capacity to reinvest, constrain free cash flow and weaken long-term profitability resilience.

Decline in free cash flow

A drop in free cash flow growth, even if FCF remains positive, raises concerns about rising capex, working capital needs or margin pressures. Persisting declines limit ability to expand capacity, reward shareholders, or build cash buffers, increasing vulnerability if export cycles or input costs turn adverse.

Exposure to export demand and FX

Heavy reliance on exports and sensitivity to foreign exchange and global ingredient demand creates structural revenue volatility. Over a multi-month horizon, currency swings, changes in global food industry demand, or shipping/cold-chain cost shifts can materially affect margins and predictability of cash flows.

SKM Egg Products Export (India) Ltd. Business Overview & Revenue Model

Company Description

SKM Egg Products Export (India) Limited produces and sells eggs and egg products. The company offers various egg powders, including whole egg powder for use in biscuits, cakes, bakery mixes, pasta, sauces, dressings, ready meals, quiches, omelets, mayonnaise, meat products, and other emulsified systems; egg yolk powder for use in mayonnaise, dressings, sauces, Spanish bread, croissants, pasta, and ice-cream; and egg albumen powder for use in meat and fish products. It also provides bakery mix products for use in cheesecakes, biscuits, cakes, sponge cakes, Swiss rolls, etc.; and liquid eggs comprising whole egg liquids, egg yolk liquids, egg albumen liquids, and customized egg liquids for use in cakes, meringues, noodles, mayonnaise, bakeries, fine food, ice-creams, cosmetics, confectionery, and pastries. In addition, the company trades in feed ingredients. It serves in Russia, Europe, Japan, Indonesia, Thailand, Vietnam, Malaysia, Taiwan, Nigeria, the United Arab Emirates, and Saudi Arabia. SKM Egg Products Export (India) Limited was incorporated in 1995 and is based in Erode, India.

How the Company Makes Money

SKMEGGPROD makes money primarily by selling processed egg products to industrial and institutional buyers, with a significant orientation toward export markets. Its core revenue stream is the sale of value-added egg ingredients—typically in forms such as egg powders and liquid egg products—priced based on product type, quality/specification (e.g., functional properties required by customers), order volumes, and prevailing input costs. Revenue is generated through (1) B2B product sales to food manufacturers and ingredient users (e.g., bakery and confectionery producers) who use egg derivatives as functional ingredients, (2) export sales where earnings are influenced by global demand and pricing for egg-based ingredients and foreign exchange movements, and (3) domestic sales to Indian industrial/foodservice customers when applicable. Key factors affecting earnings include procurement cost and availability of raw eggs, processing yields, food safety and quality compliance requirements for export acceptance, customer specification/contracting (including repeat supply arrangements), and logistics/cold-chain and distribution costs for liquid products. Specific information on named partnerships, customer concentration, or segment-wise revenue breakdown is null.

SKM Egg Products Export (India) Ltd. Financial Statement Overview

Summary

Strong balance sheet (equity ratio 61.42%, debt-to-equity 0.49) supports financial stability, and revenue growth has been solid. Profitability is improving (net margin 4.93%, gross margin 29.38%), but EBIT margin softened to 8.85% and free cash flow growth declined from 2024 to 2025, tempering the score.

Income Statement

SKM Egg Products has shown a strong revenue growth trajectory with a significant increase from 2020 to 2024. The company achieved a net profit margin of 4.93% in 2025, an improvement over previous years, although still moderate. The gross profit margin improved to 29.38% in 2025, indicating effective cost management. However, the EBIT margin decreased to 8.85% in 2025 from the previous year, suggesting some operational challenges.

Balance Sheet

The balance sheet of SKM Egg Products reflects a solid equity position with an equity ratio of 61.42% in 2025, signifying financial stability. The debt-to-equity ratio stands at 0.49, showing a well-managed leverage. The company's return on equity (ROE) of 11.42% in 2025 is healthy, demonstrating effective use of equity capital to generate income.

Cash Flow

The company's operating cash flow to net income ratio of 1.88 in 2025 indicates strong cash generation relative to net income. However, free cash flow has declined, with a negative growth rate from 2024 to 2025, highlighting potential capital expenditure pressures. Despite this, the company maintains a positive free cash flow, demonstrating good cash flow management overall.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.30B	4.98B	7.01B	6.62B	3.02B	2.69B
Gross Profit	1.71B	1.46B	1.85B	2.55B	868.59M	791.14M
EBITDA	1.03B	714.70M	1.34B	1.22B	235.32M	286.62M
Net Income	549.10M	346.10M	854.16M	759.25M	74.18M	163.11M
Balance Sheet
Total Assets	5.83B	4.94B	4.69B	3.39B	2.33B	2.10B
Cash, Cash Equivalents and Short-Term Investments	1.56B	1.55B	1.47B	629.84M	348.02M	259.83M
Total Debt	1.72B	1.49B	1.46B	1.02B	868.09M	649.57M
Total Liabilities	2.43B	1.90B	1.92B	1.44B	1.12B	944.86M
Stockholders Equity	3.39B	3.03B	2.77B	1.95B	1.20B	1.15B
Cash Flow
Free Cash Flow	-153.10M	320.90M	474.06M	319.03M	-70.57M	225.49M
Operating Cash Flow	-96.70M	652.20M	1.09B	601.53M	18.85M	256.19M
Investing Cash Flow	-241.20M	-227.00M	-540.59M	-158.70M	-80.20M	-170.11M
Financing Cash Flow	-165.10M	-248.20M	131.79M	-49.32M	-46.94M	-97.41M

SKM Egg Products Export (India) Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 374.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SKMEGGPROD, the sentiment is Negative. The current price of 374.55 is above the 20-day moving average (MA) of 161.06, above the 50-day MA of 174.09, and above the 200-day MA of 171.90, indicating a bearish trend. The MACD of -6.26 indicates Negative momentum. The RSI at 40.24 is Neutral, neither overbought nor oversold. The STOCH value of 67.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SKMEGGPROD.

SKM Egg Products Export (India) Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SKMEGGPROD	65 Neutral	₹8.16B	9.32	―	0.36%	12.43%	29.17%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KRITINUT	60 Neutral	₹3.19B	9.38	―	0.43%	16.35%	-32.55%
FOODSIN	54 Neutral	₹3.98B	296.89	―	0.43%	11.46%	-0.46%
TRF	52 Neutral	₹2.53B	14.28	―	―	-29.77%	-60.54%
UGARSUGAR	50 Neutral	₹4.33B	8.79	―	0.60%	20.40%	―
SAKUMA	46 Neutral	₹2.29B	137.71	―	0.46%	-22.06%	-79.52%

SKM Egg Products Export (India) Ltd. Corporate Events

SKM Egg Products Publishes Q3 FY26 Results Notice in Newspapers as per SEBI Norms

SKM Egg Products Export (India) Ltd has notified the stock exchanges that it has published newspaper advertisements in Trinity Mirror and Makkal Kural on 29 January 2026 detailing its financial results for the quarter and nine months ended 31 December 2025, in line with Regulation 47 of SEBI’s Listing Obligations and Disclosure Requirements. The disclosure underscores the company’s adherence to statutory transparency and reporting standards, ensuring that shareholders and market participants have public access to its latest financial performance data via widely circulated print media.

SKM Egg Products Confirms SEBI Compliance on Dematerialisation for Q3 FY2025

SKM Egg Products Export (India) Ltd has reported that it has complied with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025, confirming that details of securities dematerialised and rematerialised have been duly furnished to all stock exchanges where its shares are listed. The company’s registrar and transfer agent, MUFG Intime India Private Limited, has certified that dematerialisation requests were processed within prescribed timelines, with the underlying physical certificates cancelled and depository names recorded as registered owners, underscoring SKM Egg Products’ adherence to regulatory norms and supporting transparency and confidence for its shareholders and market participants.