KAVERI SEED COMPANY -Future Perfect.

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/-

PUNJAB CHEMICALS AND CROP PROTECTION-Patience will Pay Off

Punjab Chemicals and crop protection is a member
of Shroff group headed by Shalil S Shroff.
Company has operations through various divisions
like Agro Chemicals, Pharmaceuticals, Industrial
Chemicals ..etc .In agrochem sector, company making
various types of Herbicides, Pesticides and
Fungicides.PCPL’s 75% income coming from
agrochemicals 10% from Pharmaceuticals,10% from
industrial chemicals and rest from international
trading. Company has also presence in bio
pesticides and seed Inoculants.Company has four
international subsidiaries SD Agchem (Europe) NV,
AgriChem B.V Netherland,SINTESIS QUIMICA S.A.I.C
Argentina,and Source Dynamic LLC. All these acquired
companies are not very small ones .Company’s products
are also exported to 60 countries worldwide. PCPL is
the words largest producer of oxalic acid and
derivatives used in agrochemical industry and
exporting it to clients like Syngenta and Dow
Chemicals.Company’s last year was a disaster due
to various reasons like bad performance of
subsidiaries abroad due to recession, one of the
worst monsoon season in India and most importantly
a fire at its Herbicides unit in Mohali ,Punjab.
But now most of the problems are solved and company
is expected to post encouraging performance going
forward. As an indication of this ,promoters are in  a buying spree
from open market in recent times.
At CMP of Rs.135/- it is a good BUY for real investors.