Kaveri Seed Company Ltd., incorporated in the year 1986, is a Mid Cap company (having a market cap of Rs 2972.42 Crore) operating in Agriculture/Horticulture/Livestock sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 126.10 Crore, down -12.72 % from last quarter Total Income of Rs 144.48 Crore and down -2.74 % from last year same quarter Total Income of Rs 129.65 Crore. Company reported net profit after tax of Rs 9.16 Crore in latest quarter.
Investment Rationale
Kaveri has created strong value (FCF) over the past decade and the brokerage remains positive on its medium-term growth outlook. It models the company to report revenue and PAT CAGRs of 12.8% and 17.7% respectively, over FY20-FY23E. It values the stock on DCF-based target price of Rs710, implying a P/E of 10x FY23E. The stock is trading at an attractive FCF yield of 9% for FY21E.
Promoter/FII Holdings
Promoters held 55.5 per cent stake in the company as of Dec 30, 2020, while FIIs held 16.6 per cent, DIIs 8.3 per cent and public and others 19.6 per cent.
