JK AGRIGENETICS -DOUBLED IN 32 SESSIONS ,TIME TO MAKE IT COST FREE

I have recommended a BUY on JK AGRIGENETICS at Rs.170/-  on 11 July 2010 .(YOU CAN READ THE OLD REPORT HERE ) After just 32 trading sessions ,now it is quoting around Rs.340  - an appreciation of 100 % in these few days.Now it is known from sources that the hearing of the pending case of de-merger again postponed by the court. Those who are not interested to take high level of risk may SELL 50% of holding at current level and keep balance 50% cost free.

JK AGRIGENETICS -RESULT UPDATE

Below is the comparative figures with last year same qtr:

                             JUNE QTR 2010        JUNE QTR 2009

TURNOVER           95 Cr                    80 Cr

NET PROFIT         18 Cr                     15 Cr


EPS                    Rs.53/-                        Rs.43 /-






Company's year ending is in September ,For the nine months
ended June qtr company posted a profit of Rs.9 Cr v/s a LOSS of  7 Cr

JK AGRIGENETICS - TREASURE HUNT

JK AGRIGENETICS  is a member of JK group companies

established in Hyderabad in 1989. Earlier it was

part of JK Tyre and Industries and later de-merged

into a separate company.This company is engaged in

research and development, production, processing

and marketing of hybrid seeds of Sorghum, Pearl

Millet, Maize, Cotton, Rice, Sunflower, Tomato,

Okra and Hot Pepper. Products are selling under the

brand name 'JK SEEDS'.Company is collaborating

with various national and international

agricultural universities for bringing latest

technology in seed development.In 1999

company set up a Bio tech lab of international

standards at Hyderabad with 15 scientists .

Its Hyderabad plant having a capacity to process

100 ton seeds per day. Company is selling seeds of Cotton,Bajra,Maize,Jowar,Paddy ,Sunflower,

Castor,Mustard,Wheat,Redgram and Soyabean.It also

producing seeds of vegetables like Tomato,Bhendi,

Chilli,Bottle Gourd,Water Melon,Radish,Cabbage,

Sweet Corn,Cucumber and Coriander.Company has

recently started production from Phase 2 of its

new seed processing plant in March 2010.

Due to adverse climatic conditions company's sales

badly affected in last year and company posted

huge loss.It is expected to perform better ahead.

THE REAL ATTRACTION

--------------------

In 2006 ,company planned to de-merge  into two

- Seed division and Investment division . When we dig deep

into the investment division it is amazing to see the

value in it.This division holding shares of JK Lakshmi

Cement(Total current Market value Rs.45 - Crore),JK Paper

(Rs.38 Crore) ,JK Tyre( Rs.99 Cr.) ,Umang Dairies (Rs.3 Cr),

Bengal Assam Company ( Rs.13 Cr).Other than this it also

holding shares in unlisted companies like Fenner India,

Udaipur Cement,Florance Alumina ..Etc. All together its

investment portfolio worth over Rs.200 Cr in current

market price. Remember, its total shares issued are

only 3,506,510 and when we divide its investment

portfolio for these share ,what should be the value

of each share of JK Agri.(Approx.Rs.570/- each) Anyway

company's plan was to de-merge it in a manner so as

a share holder will get 60 shares of seed company and

40 shares of Investment company. Company's proposal was

earlier rejected by Court due to complaints by some

share holders, and company now filed an appeal to the

division bench .This petition is expected to come for

hearing in this month itself . It is expected that Company

is planning to de-list the investment company after

de-merger . I believes If such a reverse book building

happens ,one can recover entire investment (at current

rate) by just surrendering the shares of investment

company alone and keep the shares of seed company

cost free. In nut shell at CMP of Rs 170/- you are

getting a company from JK group operating in a high

potential Agri sector plus part of 200 Crore investment

at a market capitalization of just 59 Crore.