SKM egg products was recommended at Rs 12/share and currently trades at Rs 52/share. The stock is hitting the upper circuit on a daily basis. For all those who had bought the stock at substantially lower valuations, the question of selling will be foremost on your minds. At Rs 52/share, the company trades for a market cap of Rs 130 Crs. Assuming that the company is able to make revenues of Rs 270 Crs with 5-8% PAT margins (Rs 13 Crs – Rs 21 Crs), this would bring our forward P/E anywhere between 6-10 x (a pretty large range to work with).
The question of selling, for a company like SKM with excellent long term prospects is really about whether you have any other better investment options. The stock may go lower from here (or higher, who knows?) and may cause heartburn. Or you can sell assuming that the stock has peaked. But if it goes to Rs 100 from here, then again you will have heartburn. It is up to the investor to decide his/her future course of action.
Disclosure: I plan to hold this company for the long term. I am impressed by the company, management and its growth prospects and I see no reason why the stock needs to be sold. Remember, some of the Pokaran Money manager`s picks that are tiny and small cap today, may turn into the large caps of tomorrow. Happy Investing!
thepokaranmoneymanager 
Thank you Sir, for your valuable feedback on SKM Eggs
Hello sir… how about making a fresh entry at current price ?
Hello Sanjeev
This is a very very hard question to answer. I leave it to your judgement to answer that.
Dear Arun,
Thanks a lot for this update. Anyway, could you please have a look at Garware wall ropes? It seems to be having a good balance sheet with reasonable growth. Has appreciated in last year and half. But does it have the potential to give higher than index returns?
Warm
Regards
Bhaven Sheth
Hello Sir
I remember that a few years back, a caompany called Garware polyester moved from Rs 10 tor Rs 160 in a very short while. Believe that Garware Wall is a part of the same group. From a cursory glance, yes, the balance sheet looks strong. Only problem seems to be there profit margins, which are low. Let me take a slightly deeper look and get back to you.
Garware`s product line up looks very impressive. Thank you for asking this question. I will take a better look and get back
Hi
Can you suggest some diwali picks ??
The last 2 years in the stock markets have been about multibaggers .. Smallcaps becoming midcaps ( caplin point avanti , kaceri etc .) and midcaps becoming largecaps ( eicher motors , force motors ajantha pharma ) ..
Have you found few multibaggers for next diwali who can fetch multifold returns over the years ?? Can you suggest a few of them ??
Regards
What r yr expectations for 4th quarter results..if u see export data in zuaba.com then egg albumen exports last months lower than oct-Dec quarter.
I usually dont bother too much with q-o-q data. If you look at SKM website, they have mentioned that exports to Russia have begun.
Sir why suddenly the price is going down any idea please
No idea. But not worried