KAVERI SEEDS
The company is in existence since three decades and is a leading player in the field of agri and seed business and producer of premium quality hybrid seed of food, fibre, feed and vegetable crops. Till date it has 8 seed processing plants located across the country with a processing and packing capacity of 58 tons per hour. During 09-10, company embarked upon expansion plan by building a huge processing plant at Pamulaparthy in dist Medak in AP, along with state of the art technology for warehouse and seed bank facility catering to the need for seed reserves. For effective supervision of seed production, the company owned land area of 120 acres has been brought under plough. Rain water harvesting and drip water irrigation is judiciously used to raise the crops.
MICROTEK division of the company made significant progress in the field of micronutrients, organic and Bio products. The company enhanced the product portfolio of Microtek division and marketed through a well knit network of dealers and distributors across the country.
The company is having very unique business model offering almost everyseeds. The product portfolio includes 12 maize, 6 cotton, 23 paddy,5sunflower and other vegetables and sorghum seeds verities.
High performing seeds include hybrids of cotton, pearlmillet, maize and sunflower.
CMP 333 MCAP 456 CRORES
DEBT 45 CR FOR FY 10
BV 110
EQ 13.7 CR FV 10 PROM HOLDING 63.71%(5.26% OF THIS 63.71 % PLEDGED)
PROMOTER HOLDING HAS BEEN CREEPING UP EVERY QUARTER SINCE PAST SIX QUARTERS HAS INCREASED FROM 61% TO PRESENT 63.71%
CASH AND BANK BALANCE 19 CR
JUNE QTR RESULTS
June is traditionally the best quarter for the company with bulk of the revenues and profits coming in this quarter.
Q1 FY 11 SALES 148 CR (Q1 FY 10 SALES 100 CR)
Q1 FY 11 NP 31.18 CR (Q1 FY 10 NP 23.13 CR)
EPS Q1 FY 11 22.75 VS Q1 FY 10 16.88
ROE FOR FY 11 LIKELY TO BE ABOVE 25.
BASED ON JUNE QTR RESULTS, THE COMPANY IS LIKELY TO POST EPS IN EXCESS OF 28-30 FOR FY 11.
LAST FEW YEARS SALES AND PROFITS
YEAR |
05 |
06 |
07 |
08 |
09 |
FY10 |
Q1 FY11 |
Q2FY11 |
SALES |
44 |
48 |
66 |
96 |
123 |
162 |
148 |
36 |
PBDIT |
2.32 |
4.86 |
17.14 |
23.22 |
28.36 |
35.33 |
34.87 |
6.6 |
NP |
1.29 |
2.9 |
10.16 |
13.4 |
22.9 |
29.07 |
31.17 |
3.71 |
cash |
3.37 |
4.81 |
19.52 |
14 |
19.95 |
|||
DPS |
2 |
2 |
||||||
DEBT |
10.36 |
14.42 |
11.9 |
5.67 |
21.38 |
45.52 |
LAST SEVEN QUARTERS RESULTS
QTR |
MAR09 |
JUNE09 |
SEP09 |
DEC09 |
MAR10 |
JUNE10 |
SEP 10 |
SALES |
18.4 |
100 |
26.78 |
22.6 |
12.7 |
148 |
36 |
NP |
0.49 |
23.13 |
2.7 |
3 |
0.17 |
31.18 |
3.71 |
EPS |
0.71 |
16.88 |
1.96 |
2.24 |
0.12 |
22.75 |
2.7 |
The top-line ofthe company was heavily contributed by Corn and sunflower but after2007 the company has shifted its focus to the BT cotton seeds and the
contribution of BT
cotton to the topline is 25% during FY 10 from 10% in FY 07. Although the margins in cotton are lower, the volume potential is huge which can give good topline growth.
The company has invested more than Rs 60 Crs in recent past. This
capex is enough to take top line to Rs 400 Crs in years to come from the present 160 crores.
Looking at the results shown and prospects of the company especially in view of the expanded capacities and balance sheet strength, KSCL looks an interesting investment bet at cmp of around 330.