SKM Egg Products Export (India) Shows Strong Growth, Attracts Investor Attention

SKM Egg Products Export (India) has recently caught the attention of investors as its stock call has been upgraded to 'Hold' by MarketsMOJO. This microcap company in the FMCG industry has shown healthy long-term growth with an annual operating profit increase of 159.16%. The stock is currently in a mildly bullish range and the technical trend has improved from sideways to bullish since 26 June 2024. One key technical factor, the Bollinger Band, has also been bullish since the same date.
In terms of valuation, SKM Egg Products Export (India) has a very attractive ROE of 30.8 and a price to book value of 2.7. The stock is currently trading at a discount compared to its average historical valuations. Despite a 30.31% return in the past year, the company's profits have only risen by 12.2%, resulting in a low PEG ratio of 0.7.

However, the company did experience negative results in March 2024, with a -61.7% decrease in PAT(Q) and a -10.5% decrease in NET SALES(Q). The operating profit to interest ratio was also at its lowest at 4.09 times. Additionally, there has been a decrease in institutional investors' stake in the company, with a -0.51% decrease over the previous quarter. Currently, institutional investors hold 2.2% of the company, indicating a decrease in their confidence in the company's fundamentals.

It is important to note that institutional investors have better resources and capabilities to analyze a company's fundamentals compared to retail investors. Therefore, it is crucial for investors to carefully consider all factors before making any investment decisions. With the recent upgrade to a 'Hold' rating and the company's strong long-term growth, SKM Egg Products Export (India) may be worth keeping an eye on for potential future developments.