SKM Egg Products Shows Strong Financial Turnaround Amidst Rising Interest Expenses

SKM Egg Products Export (India), a microcap player in the FMCG sector, has recently undergone a significant evaluation revision, reflecting a notable turnaround in its financial performance for the quarter ending June 2025. The company reported impressive metrics, including a record operating profit to interest ratio of 7.60 times and a low debt-equity ratio of 0.49 times, indicating strong operational efficiency and financial stability.
Net sales reached Rs 175.70 crore, while PBDIT stood at Rs 24.79 crore, both marking the highest figures for the company. Additionally, profit before tax less other income was reported at Rs 17.67 crore, and profit after tax reached Rs 16.28 crore, with earnings per share at Rs 6.19.

However, challenges remain, particularly with interest expenses growing by 24.57% over the last six months and a return on capital employed (ROCE) of just 12.75%. The debtors turnover ratio also reflects a low performance at 17.35 times.

In terms of market performance, SKM Egg Products has outperformed the Sensex over various time frames, including a remarkable 371.54% return over three years and an impressive 761.81% over five years, showcasing its resilience and growth potential in a competitive landscape.