Monday, July 5, 2010


KAVERI SEED COMPANY – is one of the very few pure
listed  Indian  companies from hybrid seed sector.
Others from this sector are JK Agrigenetics ,Rallis,and
Advanta . Apart from these  other listed firms are
affiliates of foreign players like,Monsanto, Bayer
..etc. Kaveri Seed is a well managed Secunderabad
based firm promoted by Mr.GV Bhaskar Rao in 1976.
Company has grown a lot after that and now it is one
of the largest hybrid seed producer from South
India .Its product portfolio include seeds of
Corn, Cotton, Sorghum, Pearl Millet ,rice ,sunflower
and a wide variety of vegetables.Company also producing
various types of micro nutrients, plant hormones ,
bio-stimulants for different crops.Kavari also
producing organic plant protector under the brand
name ‘FIRE’. Other than this, company has a lot of
organic products to enhance yield from crops.
Recently Kaveri started operations in its  state
of an art facility for cob drying, seed processing
and cold storage which established in its owned 
farmland of 29 Acres in Medak district of Andhra
Pradesh. It added Red gram, onion, mustard and wheat
to is portfolio recently . This pure Indian player has
a very energetic R & D wing and introducing new
verities which can give good result even in bad
conditions like draught. Now in southern states of India
like Tamilnadu,Andhra and Karnataka ,precision farming is
gaining momentum and it is experienced as a great success.
This method requires hybrid seeds and scientific methods
of farming which is expected to bring big business to Kaveri.
                        In the financial front ,Company
is growing steadily and posted a turnover of Rs. 169 Cr
and a net profit of Rs.29 Cr in last financial year.
EPS for FY 2010 is Rs.21.20/-. Backed by good monsoon
compared with last year ,Kaveri is expected to post even
better result in this year. Its business is seasonal
and 90% income generated in first qtr.Company has an
equity base of Rs.13.7 Cr and out of this 63% is held
by promoters and 26 % by big investors including mutual
funds .Even from a low floating stock, promoters are
again buying from open market. In nutshell, with a clean
and dedicated management and excellent R & D Wing Kaveri
Seed  is a company to reap the benefits which is expected
to emerge in Farming sector ,going forward.This one stop
company for hybrid seed ,organic fertilizer and organic
pesticide  is quoting around Rs.272/-


  1. Wonderfull pick sir,

    "Its business is seasonal
    and 90% income generated in first qtr" this caught my attention, another stock that make most of the money in 1st Quarter is Navneet Publication.

    Thank you

  2. Hi Value
    You are doing a grate job,In some other blogs like there is only one way communication and no chance to share comments.Keep it up.

  3. Hi Valuepick,

    Whats your take on Karuturi Global?
    This company has the largest farming land bank in the world..which they bought in Ethopia.........


  4. Dear Vikas,

    Never look for company having so called "LAND BANK", if they are selling, then buy other its just looks good from outside :).

    Related to your stock here is the information : India’s horticulture sector fails to bloom .

    Thank you. :)

  5. Hi Mahesh,

    I do agree with you that Land bank doesn't matter......but with Food crisis looming large on everybody's head this farming land will be very useful and apart from the land bank they hold....they are trying to start farming which is going to supply 5% of global food demand.
    With that supply capability and with demand only said to rise, this company might gain enormously.


  6. This comment has been removed by the author.

  7. But whats guarantee they will capitalize their huge land bank.

    "they are trying to start farming ", they are yet to start, when they start we will look @ it. Delivery is all about what matters and management is not good. Look @ market cap and sales. I cant justify the figures.

    Take your own call :)

  8. Vikas

    Have some doubt about the quality of the management of Karuturi

  9. Thanks Mahesh and Valuepick for your Inputs on Karuturi...
    These clarifications really helps to make a good investment call.


  10. sir,
    what about your view on latest status of spice mobility

  11. DOyou have some link with HBJ ...i think you have ...1st they recommend than you

  12. sir, any views on Patel engineering? they seem to be growing their business well, expanding into realty& power, keeping subsidiaries under their full fold but yet their market cap is around their IPO level :(
    Wonder why such valuation and market response for this company.

  13. Dear Sundar
    Patel Eng not trading at IPO level but around its FPO level.This FV Rs.1/- share is trading with a p/e of around 14 which is neither very cheap nor expensive and it may be a market performer going forward.

  14. Dear Anony

    To know more about my link with HBJ ,Please read my comment on Pioneer Investcorp using the following link:

  15. Hi,

    I have been following your blog.
    I liked yr comments that this co is for long term ( Several years).
    Request if you can suggest scrips we can keep for next 10 years.

  16. Hi,

    Great blog.

    What is your view regarding Camson Biotechnologies vis a vis Kaveri Seed Company?



  17. My opinion on both these companies are already expressed in this blog.



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