X

Kaveri Seed Company Ltd. Stock Analysis

Small Cap
Evaluated by 4057 users | BSE: 532899 | NSE: KSCL |
Agriculture
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...
1. Right Stock
Very Good
2. Right Price
3. Right Time

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'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 0036.8%48.34%45.85%19.1%9.91%19.35%18.91%23.27%
Value Creation Index NANA1.632.452.280.36-0.290.380.350.66
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 007121,0111,161745705819809930
Y-o-Y Gr. Rt.-NANA42%14.8%-35.8%-5.4%16.2%-1.2%14.9%
Adjusted EPS (Rs.) 0018.5430.3842.3523.2913.9529.6930.3238.11
Y-o-Y Gr. Rt.-NANA63.9%39.4%-45%-40.1%112.8%2.1%25.7%
Book Value per Share (Rs.) 0050.174.84109.4134.27146.89153.18159.49158.91
Adjusted Net Profit 0012720929216196.3196191230
Net Op. Cash Flow (Rs. Cr.) 00110193145246159148128192
Debt to Cash Flow from Ops 000.0300.010.010.030.020.060.03
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Kaveri Seed Company Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales NA-4.3%9.7%14.9%
Adjusted EPS NA-2.1%39.8%25.7%
Book Value per Share 07.82.7-0.4
Share Price 21.5% 1.9% -0.7% 10.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 0036.8348.5545.9419.129.9219.3718.9623.39
Operating Profit Margin (%) 0019.5721.8826.6825.219.8227.2926.3927.42
Net Profit Margin (%) 0017.8320.6825.1221.5313.5923.9823.6424.8
Debt to Equity 000.01000000.010.01
Working Capital Days 000210192308320271312341
Cash Conversion Cycle 0009810317212077155159
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 55.52%
Institutions 28.58%
Non-Institutions 15.90%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Kaveri Seed Company Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Kaveri Seed Company Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Kaveri Seed Company Ltd.'s performance infers:

Kaveri Seed Company Ltd. earnings have declined by -2.1%, whereas share price has appreciated 1.9% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Kaveri Seed Company Ltd. share prices over the last 10 years. Here is what we found out:

Kaveri Seed Company Ltd. share price has appreciated 23.3% annually over the past ten years.

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

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
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

Callback