is one of the leading producers of poultry (chicken). Last year, its performance had been affected due to sharp rise in Raw Material prices as well as swine flu. However, now, Company has bounced back sharply and has reported best ever quarterly results.Company has reported fabulous results so far in Current Year. For 9 month ended, it has achieved PAT of 7.90 cr. as against loss of 68 lakhs in corresponding year of previous year. It means, there is turnaround of about 8.60 cr. In fact, Srinivasa Hatcheries EPS for Q3 alone is Rs. 8/-. Book Value as on March 2009 stood at Rs. 120/-.
In view of buoyant market, poultry manufacturers are able to pass on increased Raw Material costs and SHL will continue to do extremely well. Companies like SHL will continue to do well as poultry business needs vast tracts of land.
For new ventures, expensive land will render the project unviable. On the other hand, SHL has huge huge surplus land which can be used for expanding its capacities.
Stock is available at 6.30 x FY10E EPS.Srinivasa Hatcheries is a good pick which should deliver atleast 50% appreciation in 6 months
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