From social media posts, observe that Kaveri has a new corporate office. So the capex partly went to fund the new corporate office also.
The difference of 400 crores would shrink by another 175 cr after accounting for 20% buyback tax + surcharge/cess on 4 of the 6 buybacks.
Maize boosted by ethanol demand is a big positive.
BT 3 - cotton seed price control’s by government need to be removed as well to enable entry of BT 3 cotton seeds. Whenever that happens, it would be positive - but very low probability with wafer thin majority government for next 5 years - same government buckled down in front of farmer agitation when there was comfortable majority.
Advanta seeds - value unlocking may lead to value unlocking for Kaveri seeds. The very low valuations of Kaveri Seed will tend to stand out vs the valuations for Advanta in an IPO as most IPO’s are happening at mind boggling valuations. KKR owns 13.3% stake in seeds platform of UPL - paid 2,460 crores in Oct-2022 (Making then equity value of Advanta at 18,450 crore).
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Q3 FY 25 results were better than expected as last year base included one-time export.
This year they seem to have good crop and inventory for next year also maybe sign for potential good next year.
Disclosure: Invested and biased
solid mutual fund buying in both jan and feb Mutual Fund Feb 2025 share holdings and fund action in Kaveri Seed Company Ltd.
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Disclosure: Invested.
Growth from Maize and Rice has been good and Seed Replacement rate (SRR) is high in both these crops. Pray for good weather conditions and Kaveri will have a breakout sales and profit this year.
Risks include Contingent Tax liabilities. Income tax and company seem to have a difference on how seed income should be treated. This difference is totalling to around 130-140 ccr.
[Great article on the company, recently read on substack.] (Why Kenneth Andrade is buying Kaveri Seeds 🌱)
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https://x.com/amanagarwal/status/1907617217690349594
No Better opportunity to expedite BG3 and do whatever it takes to become efficient in Cotton production and textiles.
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