Views on Life & on Equity Investing

Wonder, Wealth & Abundance

More research into Simran Farms

with 2 comments

This is India’s poultry hub:

Simran Farms is also doing this, energy from droppings:

Mahesh a fellow investor who researched into Simran Farms deduced from his conversation that young generation Mr. Kawaljeet , Mr. Gurmeet and Mr. Avneet have been instrumental in providing a vision to consolidate all group operations of privately held companies into listed entity post 2005 and to try creating image.

Our discussion led us to believe that they are quite green and rookies in matters of investor relations. Some Mr. Tiwari I spoke with said company will declare dividend ( how soon ? before we get tired) and has no plans to enter retail just yet. This was slightly negative for me. Only slightly ,because company is busy consolidating and growing in other states on a model that works. Retail entry can be demanding on resources and one can wait till company becomes big in B2B segment and has werewithal.

Other conjectures are:

Chicken farms can mushroom like bacteria, hence supply glut can result.

Typical poultry cycle last 4 years but bird flu can strike anytime, next month too..

But other aspects that convince me are:

India is in long term uptrend of meat consumption. Chicken is religion neutral relatively.

Likelihood of company getting wiped out – Very low

Likelihood of 10-12 crore bottom line in couple of years (30 Rs eps) – Very high

Ex Venky’s India (formerly Western Hatcheries) manager is now working with Simran Farms

Written by amitdipsite

July 5, 2010 at 1:34 am

Posted in Uncategorized

2 Responses

Subscribe to comments with RSS.

  1. Does Simran Farms have a presence in Namakkal? What can we infer from Namakkal being the poultry hub of India?


    July 6, 2010 at 4:23 am

  2. All major Indian poultry companies are based in South. Four southern states account for 50% of poultry production. This gives Simran Farms a nice place to expand in North of India free from intense competition…


    July 7, 2010 at 9:41 am

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: