More research into Simran Farms
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