Let’s assume 5000 MT of egg powder and 5000 MT of liquid egg without considering cyclicality of dried egg prices. So broadly 6250 MT of sales ( assumption 4MT of liquid equals 1 MT of powder). Based on the earlier US price average spreads as discussed earlier this should equal to Rs 237 crore of gross profit (3.8 lakhs * 6250). Assuming all other costs are attributed to the processed eggs business (FY24 Rs131 crores) then broadly EBIT of Rs 90 to 100 crores being conservative from processed eggs.
Also assuming that all non processed eggs are sold at Rs 5.5 net of other costs vs cost of Rs 4.5 net of expenses it should yield an EBIT of Rs 20 crores.
Thus Total EBIT OF Rs 100 to Rs 120 crores on a non cyclical basis. Company will be net cash positive by year end so broadly Rs 75 crores to Rs 90 crores of PAT.
Please note these nos are non cyclical annual expectations from the company and not for FY25.
Of course much more upside in numbers if company scales up production further as capacity available is 7500 MT.
Stacks up well against current market cap of Rs 640 crores.
Bring a specialized commodity near term prices will have a greater bearing on performance. Currently spreads are way above assumptions and egg powder prices will likely move up as contracts get reset.
Invested and biased.
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