KAVERI SEED COMPANY -UPDATE

I have received many queries from readers asking whether Kaveri Seed

Company is still a BUY after a  rise of RS.15/- from earlier

recommended price in just two days. Following are  some points

about the company :

 1)      The industry in which it operates have huge potential

        going forward

2)      There are only few listed players in this sector , and entry

      barrier is very high.

3)      Company having  a good ,aggressive and focussed management .

4)      It is growing steadily over past many years

5)       Its R & D is very strong  with 250 acres of land dedicated to

       R&D and  with State-of-the-art Bio-technology labs.

6)      Excluding promoter stake and shares held by large investors ,

      floating stock is just 10% of total equity

7)      Promoters bought shares in recent past from open market even

      at a price of Rs.290/-

8)  Kaveri is the cheapest stock available from this sector with

            a P/E of 13 (Monsanto - 28 ,Advanta 31 ,JK Agri in loss)
      9)  It is virtually a debt free company

     10)  Most importantly , Kaveri  is not a much publicized stock

            and many from investor  fraternity including analysts and
          

            business channels have  not celebrates it so far

The above are some of the points in favour of Kaveri Seed  ,
Considering

the fact that its 90% income is coming from June qtr alone and the
result

of this qtr is going to publish within 20 days ,even at current price it is a

BUY and hold to grow with it  ,and not a stock to Buy today and sell

tomorrow or day after tomorrow. One negative point is , Monsoon and

weather condition have great influence in its business  and which can’t

be   controlled by anyone other than god.

 EARLIER WRITE UP CAN BE ACCESSED HERE