Kaveri Seed Company Ltd Stock Analysis

BSE: 532899 | NSE: KSCL | Agriculture | Small Cap

BSE Share Price Jan 27, 18:01
551.50 5.40 (0.99%)

DeciZen - Make an Informed Decision on Kaveri Seed

Overall Rating
See How?

1. Quality

2. Valuation

Fair
P/E P/S EV/EBITDA

3. Price Trend

FAQ's

1. Is Kaveri Seed Company Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Kaveri Seed Company Ltd is a good quality company.

2. Is Kaveri Seed Company Ltd undervalued or overvalued?

The key valuation ratios of Kaveri Seed Company Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Kaveri Seed Company Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Kaveri Seed Company Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Kaveri Seed:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Kaveri Seed Company Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 0%36.8%48.3%45.9%19.1%9.9%19.4%18.9%23.3%25.3%-
Value Creation Index NA1.62.52.30.4-0.30.40.40.70.8-

Growth Parameters

Growth Parameters Colour Code Guide
Sales 07121,0111,1617457058198099301,036960
YoY Gr. Rt. %-NA42%14.8%-35.8%-5.4%16.2%-1.2%14.9%11.4%-
Adj EPS 018.530.442.423.31429.730.338.146.435.7
YoY Gr. Rt. %-NA63.9%39.4%-45%-40.1%112.8%2.1%25.7%21.7%-
BVPS (₹) 050.174.8109.4134.3146.9153.2159.5158.9206.3225.8
Adj Net Profit 012720929216196.3196191230280208
Cash Flow from Ops. 0110193145246159148128192252-
Debt/CF from Ops. 00000000.100-

CAGR

CAGR Colour Code Guide
9 Years 5 Years 3 Years 1 Years
Sales NA6.8%8.2%11.4%
Adj EPS NA14.8%16%21.7%
BVPS 0910.429.8
Share Price 19.2% 3.3% -2.3% 2.1%

Key Financial Parameters

Performance Ratio Colour Code Guide
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 036.848.645.919.19.919.41923.425.416.5
Op. Profit Mgn % 019.621.926.725.219.827.326.427.428.820.9
Net Profit Mgn % 017.820.725.121.513.62423.624.827.121.7
Debt to Equity 00000000000
Working Cap Days 00210192308320271312339361902
Cash Conv. Cycle 009810317212077155159143615

Recent Performance Summary

Net Profit is growing at healthy rate in last 3 years 16.04%

Return on Equity has declined versus last 3 years average to 16.50%

Sales growth has been subdued in last 3 years 8.15%

Sales growth is not so good in last 4 quarters at -0.85%

Latest Financials - Kaveri Seed Company Ltd.

Standalone Consolidated
TTM EPS (₹) 35.3 35.7
TTM Sales (₹ Cr.) 914 960
BVPS (₹.) 228.2 225.8
Reserves (₹ Cr.) 1,319 1,305
P/BV 2.39 2.42
PE 15.46 15.28
From the Market
52 Week Low / High (₹) 468.55 / 815.85
All Time Low / High (₹) 22.20 / 1077.00
Market Cap (₹ Cr.) 3,185
Equity (₹ Cr.) 11.7
Face Value (₹) 2
Industry PE 16

Management X-Ray of Kaveri Seed :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About Kaveri Seed Company Ltd

Kaveri Seeds was incorporated as GVB Rao & Company in 1976 by G V Bhaskar Rao. These first steps of creating an enterprise were guided by a unique vision to provide high quality and cost effective hybrid seeds and crop solutions derived from innovative plant genetics and technology.

GVB Rao & Company started off with seed production of public bred varieties of corn, pearl millet and rice and subsequently also took up product distribution for a leading seed MNC.

One of the significant milestones in the journey of GVB Rao & Co was the introduction of the first ever proprietary private corn hybrid in South India. This corn hybrid - a result of the company’s indigenous breeding program – had an edge over other existing varieties in terms of yield. And this launch was a mega success as farmers started realizing better yields and bumper returns. Inspired by this success, GVB Rao & Co ventured into value added breeding and subsequently in 1986, evolved into a bigger entity under the name of Kaveri Seeds.

Kaveri Seeds came up with an IPO in 2007 that raised Rs 68 crore to fund acquisition of farmlands, upgradation of seed processing plants and working capital requirements.Kaveri Seeds marched ahead and integrated its services to the farmers by diversifying into proprietary hybrid seeds of other crops such as sunflower, pearl millet, sorghum and rice. Over the years, a sharp focus on Research & Development has enabled kaveri seeds to earn a sizeable market share in corn and sunflower hybrid seeds.

Kaveri Seeds was converted into a public limited company in Nov 2006. However, apart from the change of this status, the company evolved too in terms of its product and service offerings. kaveri seeds was one of the first to notice the disturbing trend in crop husbandry by way of soil being deprived of its fertility and useful soil micro flora. Yields had started declining and owing to the declining soil quality, farmers were not able to harness the full potential of high-yielding seeds. Kaveri sensed the market need of soil replenishment and hence embarked upon a new initiative to reclaim the soil fertility in a scientific way. It is with this objective that Kaveri Seeds acquired Kaveri Agriteck which had a proven record in the area of soil enhancement and a good network focused on micro nutrients and bio-products.

Kaveri Seeds’ Research & Development facilities are recognized by the Department of Science & Technology, Govt. of India.Kaveri seeds today, is synonymous with premium quality seeds enriched with genetically superior traits – and this has become possible because of its commitment to research. And this commitment to research and innovation stems from the fact that kaveri seeds is a market driven company. A company whose breeders are in close contact with the changing needs of its customers. The farming community is one of most affected by Nature’s vagaries in the form of erratic monsoon, pest attacks and drought conditions. Reasons why, performance and productivity of seeds is the foremost concern of the cultivators. Kaveri Seeds, a company focused on farmers’ prosperity understands these challenges and hence has committed itself to an ongoing pursuit of new ideas and innovations.

Product range of the company includes:

  • Agriculture - Corn sunflower, pearl millet, grain sorghum, cotton and rice 
  • Vegetable- Tomatoes, okra, chillies and waterlemon
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