SKM Egg Products rises after Care Ratings reaffirms ratings at 'A-/A2+'

The agency has also affirmed SKM Egg Products' short-term rating at 'CARE A2+'.

Care Ratings stated that the Ratings assigned to bank facilities of SKM Egg Products Export India (SKML) continue to derive strength from its long operational track record for over three decades in the egg powder business, dominant position in export of egg powder from India, integrated nature of operations and diversified product offerings with a well-established distribution network.

The ratings also factor in comfortable capital structure, comfortable coverage indicators and strong liquidity position. However, ratings are constrained by SKML?s geographical and client concentration risk and execution risks associated with its large debt funded capex.

The ratings are also constrained by profitability margins being susceptible to international egg powder prices, raw material and feed prices, foreign exchange fluctuations, and the industry?s susceptibility to outbreaks of Avian Influenza and other diseases.

The agency said that a sustained scale-up in operations to over ₹1,000 crore while maintaining a PBILDT margin above 15%, along with an improvement in the capital structure, could lead to a positive rating action.

Conversely, the rating could face downward pressure if further large debt-funded capex results in deterioration of the capital structure and weakening of the liquidity profile, including free cash and liquid investments falling below Rs 30 crore.

SKM Egg Products Export India is engaged in manufacturing and selling egg powder and liquid egg with varieties of blends used across segments in the food industry such as bakery & confectionery, noodles & pasta, meat & fish products, mayonnaise & salad dressing and also in health and pharmaceuticals sectors.

The company's consolidated net profit jumped 46.50% to Rs 23.85 crore on a 4.87% rise in revenue to Rs 184.26 crore in Q1 FY27 as compared with Q1 FY26.

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