SKM Egg Products plans massive capex expansion despite soft global headwinds

Market pulse

From the investor's mind

Banks in India are continuing to show a massive appetite for gold loans, with the total outstanding credit in this segment reaching 5.77 lakh crores. Capitalmind founder Deepak Shenoy highlights that this represents a staggering 83 percent year-on-year growth, driven heavily by nearly 3 lakh crores added in gold loans over the last year. This rapid expansion could pose a significant risk for lenders if gold prices experience a further slide of around 15 percent. Ultimately, such a price drop would squeeze the collateral value backing these aggressive credit books, potentially triggering systemic issues for the banking sector.

Word in the street

SKM Egg Products Export (India) Limited

Investors are actively discussing SKM Egg Products Export (India) Limited, a company with a market cap of about 1,024 crore whose stock has fallen 4.25 percent over the past year. The conversation focused on the second quarter earnings call, which revealed that the firm is in the middle of a massive capital expenditure program. Despite this expansion, serious headwinds have emerged as soft global egg prices from oversupply in the United States and Europe collide with a spike in local Indian feed costs for soya and maize. This has hit margins, with management admitting they are a pure price-taker with zero pricing power.

Yesterday's big moves

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