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/-