SRINIVASA HATCHERIES LTD - BUY@CMP- Rs.118/-

Increasing disposable income and changing food habits

made lot of changes in the fortunes of companies from

Poultry and hatchery industry. All listed players from this

sector are going through a re-rating currently. Srinivasa

Hatchery is a company from this sector which is

performing very well in financial front in recent times.

Srinivasa Hatcheries, the flagship of the Srinivasa group

was promoted by C Jagapati Rao and K Somi Reddy .

SHL is a leading company in the Indian poultry industry

started in 1978 at  Hyderabad. It is engaged in poultry

breeding and the production of broiler chicks. Its farms

and hatcheries are located in the coastal districts of

Andhra Pradesh and a poultry diagnostic laboratory

in Vijayawada. It is a reliable supplier of quality high

yielding chicks and working closely associated with
venkateshwara  group ,the undisputed leader in
Hatchery sector. For the full year of March 2010,SHL
posted a turnover of Rs.123 Cr and a net profit of
Rs.12 Cr . For the first qtr of  current FY itself company
posted a sales of Rs.37 Cr and a net profit of Rs.5.5 Cr .
Company recently  declared a bonus and 25% dividend
Currently it is trading around  Rs 118 /- which is close to
its yearly high . Considering its strong growth and re-rating
in this sector it is expected to give decent return even from
current level