I stay put, and added good quantity at 1460 levels 
Will see how it pans out. Next call will be only after results are out.
Got an email confirmation from CS that first quarter results will be announced on August 13th.
Another round of promoter selling witnessed yesterday. Not sure what is going on in promoters mind. bit concerned on these sellings just before the result declaration.
disc: bought few last month for short-term.
on my query related to internal selling , got below response from the company
Dear Sir,
__
_The promoterâs selling is very nominal and ie., only for internal adjustment between the promoters.
_
regds,
Not really sure what âinternal adjustmentâ means . People tracking the company more closely can share their thoughts if any.
Good news for Kaveri.
Q1/Fy 13-14 Results outâŚ
Total Income up 53.5% to 736.03 Cr from 479.5 Cr.
EBIDTA up 57.8% to 164.54 Cr from 104.27 Cr.
Net Profit up 60.5% to 162.32 Cr from 101.12 Cr.
EBIDTA margin is 22.4% v/s 21.8%
NET Profit margin is 22.1% v/s 21.1%
Total Raw material costs as a %ge to Income is 36.6% v/s 40.9%
Employee costs to Income is 0.9% v/s 1.1%
Other expenses to Income is 40.2% v/s 36.3%
Tax Rate 1.5% v/s 1.5%
EPS 118.06 v/s 73.80
Recorded TTM (sum of 4 quartr) diluted EPS: Rs. 139.01
At 01:50 pm on 13/08/2013, stock on BSE trading at Rs. 1685/- up 2.5%
outstanding results from kaveri. revenues up 53.5%, NP up 61%. trailing TTM EPS 137.4 makes the stock valued at 12.3 times TTM earnings. wow !!
Excellent results by Kaveri. I think we should all give credit to Team Hyderabad for their wonderful efforts.
Regards,
Ankit
Sorry! posted Standalone results, though not much of a difference but
Consolidated numbers as belowâŚ
Total Income up 53.5% to 736.08 Cr from 479.58 Cr.
EBIDTA up 57.7% to 164.32 Cr from 104.17 Cr.
Net Profit up 60.9% to 161.82 Cr from 100.6 Cr.
All Expense ratios remain same as in standalone numbers.
EBIDTA margin is 22.3% v/s 21.7%
NET Profit margin is 22% v/s 21%
EPS 117.7 v/s 73.40
Recorded TTM (sum of 4 quartr) diluted EPS: Rs. 138.36
Promoter holding down to 64.73% v/s 64.95% q-o-q.
Great results from Kaveri. The full year EPS is on course to cross Rs 140.
It will be interesting to see how their Maze hybrid did. We might have a surprise upside for Khariff maze crop too. Then the EPS can cross 145.
At less than 12 times FY14 it still looks like a buy!!! Its amazing how these high growers become cheap every now and then even after the price doubles. With 2 consecutive yearâs stupendous growth that too in highly competitive conditions Kaveri has proven its intrinsic strengthâŚit deserves higher valuation.
The stock price movement reminds me of last yearâs results. The market did not react much for almost a month and then the journey from 800 to 1400 was swift.
Congrats to team Hyderabad and of course Donald for helping us see the real picture.
Cheers and enjoy the ride
Vinod
Q1 EPS @ 118.
Team Hyderabad is bang on target ( Q1 EPS projection was 113(conservative) to 120(optimistic)).
Excellent results! Thanks to Hyderabad Team for all the efforts and sharing with us all. Thanks to Tirumal Rao, Omprakash, Donald, Vinod, Kiran (sorry if I missed anyone) for excellent fieldwork and analysis.
I think Kaveri could easily achieve eps of 140 and applying a pe of 15 gives price target of 2100.
Disl: Kaveri is among my top holding.
Really splendid exhibition of scuttlebutt research. Philip Fisher will be proud of team Hyderabad 
Sorry I forgot to mention the contribution of Hitesh.
Great results.
Its been Team hyderabadâs contribution all the way and donald for pushing them for the efforts⌠Its because of you guys that a lot of people who had full faith in your feedback are going to make loads of money.
I think anything below 1700 also looks a good buy for those who were left behind⌠Markets will take some time to react positively and that might be the window of opportunity.
If the management can loosen the purse strings and give high dividend payout maybe to the tune of 30-40% this one can really flyâŚ
In the next post I am going to put in some data which shows that this company has never grown its sales and net profits less than 25% since last many years and still available at a trailing PE of 12-13âŚ
regards
hitesh.
Kaveri data.
LAST FEW YEARS SALES AND PROFITS
|
YEAR |
05 |
06 |
07 |
08 |
09 |
FY10 |
FY11 |
FY 12 |
FY13 |
Q1 fy 14 |
|
SALES |
44 |
48 |
66 |
96 |
123 |
162 |
233 |
372 |
745 |
745 |
|
% growth |
10 |
37 |
45 |
28 |
31 |
37 |
60 |
100 |
||
|
PBDIT |
2.32 |
4.86 |
17.14 |
23.22 |
28.36 |
35.33 |
54.87 |
77 |
138 |
164 |
|
NP |
1.29 |
2.9 |
10.16 |
13.4 |
22.9 |
29.07 |
42.47 |
58.1* |
129 |
162 |
|
% growth |
77 |
241 |
32 |
71 |
26 |
46 |
36 |
120 |
||
|
Npm |
2.93 |
6 |
15.4 |
13.95 |
18.6 |
18 |
18.22 |
15.6 |
17.31 |
|
|
YE CASH |
3.37 |
4.81 |
19.52 |
14 |
19.95 |
40 |
100 |
262 |
||
|
EPS |
10.87 |
10.19 |
16.38 |
20.88 |
30.6 |
42.4 |
94 |
|||
|
DPS |
2 |
2 |
2.5 |
4 |
8 |
|||||
|
DEBT |
10.36 |
14.42 |
11.9 |
5.67 |
21.38 |
45.52 |
61 |
21 |
1 |
Fantastic figures for a yet unsung company.
As I mentioned earlier if they increase payout, there could be significant re rating.
It this were hawkins, it could have crossed 5k mark.:-)
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Super work by Valuepickers on Kaveri.
Hitesh Bhai you did the v difficult part of identifying this company from thousands of cos & put up a convincing argument and then involving Donald & Team Hyderabad comprising of Omprakash,Tirumal,Bala & Dr RK.
What a painstaking work done by Donald & team Hyderabad at the ground.Difficult to believe for us ordinary mortals spending most of time in our homes.
Heartfelt thanks to all of you.
Thanx Hit bhai for that post.Damn encouraging.
Its great to see companies with a decent domestic exposure performing so well: La Opala,Bajaj Corp,Emami,PI Ind.,Kaveri Seeds,etc
Its as if there IS no slowdown & the best part is their valautions.High time Kaveri Seeds traded at 18-20X.
Listened in on the concall. Just posting brief updates of whatever I could remember (Vinod/Om/whoever attended the concall, please fill in the rest of the details).
a) The mgmt indicated that 90%-95% of the growth in revenue for the year is completed in Q1.
b) 75L cotton packets were pushed through the channels. 61L packets were sold. At most, another 1-2L packets would get sold. Remaining would be returned to Kaveri.
c) Hence, Kaveri would be left over with about 35L packets and they are going to produce only 65L packets for next year, taking the inventory to FY13 levels at the end of FY14 also (1 cr cotton packets)
d) Jadoo is the major contributor, with more than 70% revenues coming from it. Jackpot and ATM contribute to the rest (both having almost equal share). ATM is supposed to overtake Jackpotâs share next year
e) They have increased their overall market share in cotton from 10% last year to 15% this year. The mgmt is confident to retain this market share next year.
f) They donât have any inventor leftover in corn/maize. The mgmt agreed that the acreage under maize continues to increase and their focus over the next 2-3 years is to increase the revenue share of corn and rice (both hybrids) and make it more than cotton.
g) The mgmt doesnât expect any meaningful contribution from microtek and kexveg divisions this year (in fact, there might be around 1cr loss due to depreciation)
h) They are not looking to increase dividend payout as they want to be mindful of the cash required for working capital (it seems advances next year would not be as much as this year)
i) Not much capex required in the pipeline. They are building a couple of godowns to house seeds and at max. they would require 10-15 cr for that
k) Cotton seeds can be stored without any damage for 2-3 years and hence they donât have any worry over 35L inventory left over. However, with corn and rice, they canât overproduce as the inventory will not be good beyond 1 year of storage.
On the whole, the mgmt was playing down expectations inspite of a stellar quarter. They have a knack of underpromise and overdeliver but we need not take that as an assumption always.
One grouse I had was - the mgmt didnât have numbers ready at hand at all. Everything was on an approximate basis and given that this is not the first time they were attending a concall, I expected them to handle questions better.
With the downbeat mgmt talk, on a conservative basis, we should not be expecting more than Rs.125-130 for FY14 with no change in dividend payout. Price targets of course are a function of oneâs hope/optimism/despair.
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