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

• Market Cap: ₹4.53B
• Dividend Yield: 0.36%
• Average Volume (3M): 13.30K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 1.02
• Revenue Growth: 12.43%
• EPS Growth: 29.17%
• Country: IN
• Employees: 229
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 4.70
• 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: ₹398.00 ▲(6.26% Upside)

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

A high equity ratio and modest leverage provide durable financial flexibility to fund growth, absorb demand shocks and support export operations. This balance sheet strength reduces refinancing risk, enabling sustained capex, quality controls and long-term supplier/customer partnerships.

Diversified Export Revenue Model

A diversified product mix and international customer base reduce single-market concentration and stabilize revenue cycles. Structural exposure to food manufacturers and pharmaceuticals means recurring institutional demand and potential to capture higher-margin specialty or value-added product contracts over time.

Revenue Growth and Improving Gross Margin

Consistent revenue expansion coupled with rising gross margins indicates effective pricing and input-cost management. Over the medium term this supports reinvestment in processing capacity and quality systems, reinforcing competitive position in exported egg products and improving return on incremental sales.

Negative Factors

Declining Free Cash Flow Growth

A drop in free cash flow growth suggests increasing capex or working capital strains that can limit liquidity for dividends, deleveraging or strategic investments. If persistent, this reduces financial optionality and may force trade-offs between capacity expansion and shareholder returns.

Softening EBIT Margin

A contraction in operating margin signals rising operating costs or lower pricing power that could persist if input inflation or inefficiencies continue. Structural margin pressure would weaken earnings resilience and constrain internal funding for product development and export market expansion.

Low Dividend Yield Limits Income Appeal

A very low dividend yield reduces cash return to shareholders and may deter income-focused investors. Over time, limited payout capacity or policy can signal conservative capital allocation or competing investment needs, narrowing the investor base and possibly increasing required performance expectations.

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

SKM Egg Products Export generates revenue primarily through the sale of its egg products to international markets. The company benefits from a diversified revenue model that includes direct sales to food manufacturers, wholesalers, and distributors. Key revenue streams include liquid egg sales, dehydrated egg products, and specialty egg items tailored to specific customer needs. Significant partnerships with international food companies and distributors enhance its reach and market presence, contributing positively to earnings. Additionally, the company may benefit from favorable export incentives and trade agreements that support its international sales efforts.

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

Summary

SKM Egg Products demonstrates robust financial health with strong revenue growth and solid equity ratios. Effective leverage management and solid profitability are evident, although operational margins have faced some pressure recently. Strong cash flow generation and prudent financial management contribute positively to 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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.56B	4.98B	7.01B	6.62B	3.02B	2.69B
Gross Profit	1.67B	1.46B	1.85B	2.55B	868.59M	791.14M
EBITDA	803.40M	714.70M	1.34B	1.22B	235.32M	286.62M
Net Income	388.00M	346.10M	854.16M	759.25M	74.18M	163.11M
Balance Sheet
Total Assets	0.00	4.94B	4.69B	3.39B	2.33B	2.10B
Cash, Cash Equivalents and Short-Term Investments	1.54B	1.55B	1.47B	629.84M	348.02M	259.83M
Total Debt	0.00	1.49B	1.46B	1.02B	868.09M	649.57M
Total Liabilities	-3.04B	1.90B	1.92B	1.44B	1.12B	944.86M
Stockholders Equity	3.04B	3.03B	2.77B	1.95B	1.20B	1.15B
Cash Flow
Free Cash Flow	0.00	320.90M	474.06M	319.03M	-70.57M	225.49M
Operating Cash Flow	0.00	652.20M	1.09B	601.53M	18.85M	256.19M
Investing Cash Flow	0.00	-227.00M	-540.59M	-158.70M	-80.20M	-170.11M
Financing Cash Flow	0.00	-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: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 201.68, above the 50-day MA of 206.80, and above the 200-day MA of 154.03, indicating a neutral trend. The MACD of -9.60 indicates Positive momentum. The RSI at 22.76 is Positive, neither overbought nor oversold. The STOCH value of 4.95 is Positive, 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	₹4.53B	16.52	―	0.36%	12.43%	29.17%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KRITINUT	60 Neutral	₹3.61B	11.45	―	0.43%	16.35%	-32.55%
FOODSIN	54 Neutral	₹4.73B	15.02	―	0.43%	11.46%	-0.46%
TRF	52 Neutral	₹3.14B	26.88	―	―	-29.77%	-60.54%
UGARSUGAR	50 Neutral	₹4.62B	47.59	―	0.60%	20.40%	―
SAKUMA	45 Neutral	₹3.29B	32.06	―	0.46%	-22.06%	-79.52%

SKM Egg Products Export (India) Ltd. Corporate Events

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.