Saturday, September 10, 2011


I know , this company need no introduction to my regular readers .We are discussing about it from a level of Rs.272/- and now it is trading around Rs.470/- near to its all time high of Rs.494/-. Why it is again after a rise of about 70% ?. It is not only because of the robust result in first quarter  but due to some additional reasons too.Kaveri Seed Company  posted a turnover of Rs.Rs.241 Cr  v/s Rs.148 Cr , net profit of Rs.47 Cr   v/s Rs.31 Cr and an EPS of Rs.34.5 v/s Rs.23 in the latest June quarter compared with the same period last year.The latest news is that- the first phase of company's mega Olericulture project is nearing completion.This 100 Cr project is set up with  the technical collaboration of world leader in green house technology - Netaphim of Israel - on a turn key basis and the production from this facility is only meant for exports.This is the only listed company taking some serious steps in this field at a time of mounting food inflation pressure worldwide.In addition to this , now company is exploring opportunities in Ethiopia, Tanzania and Uganda for olericulture projects where land is available at cheap rate.Company's R&D is recently expanded and it is working on developing new variety of seeds.Indian Council for Agriculture Research recently accepted company's new variety seed KMH-3712 for using in various northern states which will help the company to ensure a pan India presence .Other new varieties KPH - 216,KPH -199 ,KPH - 272 and KPH -37 are entered to the next stage of evaluation by ICAR. These paddy varieties are expected to clear the final stage and hit the market soon.Company's R & D efforts are now more vibrant than ever and it is very important for an industry like this.There is lot of controversy about the use of BT seeds.But it is a fact , to tackle the serious situation in food production some compromises are necessary.Any decision to permit BT technology in vegetables will change the fortunes of companies like Kaveri.Considering the entry barrier of the industry and tedious process from R&D to  commercialization ( about 5 to 7 years for a new variety), all well accepted seed companies will be in a sweet spot in the years to come.Even if the management of Kaveri Seed is a bit media shy and believing only in their business and not in dialogues ,I strongly feels investors will ultimately realise the potential of this  company and the sector itself will re rate in not so distant future.Hence I reiterate a BUY on  KSCL @ CMP of Rs.470/- for long term investors.

For old posting on this company ,Click HERE


  1. sir why u r recommending not from the blue chip scripts like all other doing like rajesh tambe etc??

  2. Dear Friend

    All these so called blue chips are once small caps and mid caps.There is lot of reports are available about any blue chip in many other places .

  3. What you said is correct about Kaveri. I am sure this company will reach at great heights. As in the case of Jain irrigation , these promoters are from agricultural back ground .Seed and Olericulture may be a passion for them than a business .So difficult to beat such a passion and hence this company

    Thanks for identifying these type gem stocks

    Atul Srivastava

  4. Hello Sir,

    Please give your view on VIP, SBI and Axis bank for medium term?

  5. Dear Sir,

    This has been fantastic recommendation from you.
    You had recommended at around 250 to 270 Price range. It looks like that this company may become large cap some day.

    My salute to you Sir.


  6. What is your take on Piramal Healthcare (a Perfect Ben Graham scrip)?

    Vikas Karunakaran

  7. DEAR VALUE pick, how can i view your messages at moneycontrol portal.

  8. It is strange ,not much analysis or coverage by any brokerage house on this good companya

  9. Dear VPji

    Your prediction on this company will come true.See below link from today's Economic times :

  10. Your take on AVT natural it is showing wide fluctuation either it goes down in 5% circuit or high of 5% circuit and also your opinion on balmer lawrie for long term investment

  11. Dear Ashish

    Generally not tracking popular stocks

  12. Dear Ramesh Arjun

    It is not a surprise for any low liquid stock like AVT . Balmer and Lawrie is not a bad choice ,enter in a correction .It turned XD now that is why there was an extra dip in it in last trading day

  13. Which one is more promising - Advanta or Kaveri?

  14. Advanta is also good , but its balance sheet is much leveraged

  15. VV good set of numbers for FY13 first quarter . Why People are booking profit in this counter after such a good set of numbers .

    PAT went from 47 to 101 cr. More than double.

    What should we do sir ?



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