Kaveri Seed Company Ltd. share price target and research reports

Name: Latest research reports of Kaveri Seed Company Ltd. authored by Keynotes Financial Opiniery and published by - Trendlyne research reports.
Item: Kaveri Seed Company Ltd.
Rating: 5
Author: Keynotes Financial Opiniery

Latest analyst research reports with target prices and PDF download for KSCL, BSE:532899 Kaveri Seed Company Ltd.

Kaveri Seed Company Ltd.

05 Jun 2020

1041.70

-2.18%

Kaveri Seed

Buy: Kaveri Seed Company Ltd.

Keynotes Financial Opiniery

Kaveri Seed Company limited is a leading producer of quality crop seeds in India. Kaveri seed was incorporated in 1986 recognizing the need to accelerate crop productivity to ensure food security and farmer prosperity. We are today among the fastest and leading seed producing companies in India offering a broad...

Kaveri Seed Company Ltd. has gained 59.14% in the last 1 Year

Kaveri Seed Company Ltd.

01 Jun 2020

1041.70

-2.18%

Operating performance under pressure in Q4; revenue above est.

Buy: Kaveri Seed Company Ltd.

Target

Motilal Oswal

EBITDA loss stood at INR118m in 4QFY20 v/s loss of INR59m in Kaveri Seeds (KSCL) closed FY20 on a strong note, with 15%/20%/20% revenue/EBITDA/PAT growth. We have increased our earnings estimates by 25%/31% in FY21/FY22 on the 1015% volume growth guidance in the Cotton Seed segment and 2025% growth in the Non-Cotton segment. However, we have assumed 7m packet (in FY21) sales of cotton seeds (lower by 3% YoY) on lower cotton price due to subdued domestic as well as export demand. 12% revenue growth in FY20 in cotton seeds was driven by 17% volume growth (to 7.23m packets). Additionally, the contribution of new products rose from 15% to 23% of the total volume. Hybrid paddy reported 66% revenue growth in FY20 on 60% volume growth; growth was driven by the launch of the new Hybrid Paddy KPH 468. The contribution of new products rose from 26% to 51% of volumes.

Kaveri Seed Company Ltd. has gained 59.14% in the last 1 Year

Kaveri Seed Company Ltd.

07 Feb 2020

1041.70

-2.18%

EARNINGS UPDATE- KAVERI SEEDS LTD 3QFY20

Buy: Kaveri Seed Company Ltd.

Chola Wealth Direct

Background: Kaveri Seed Company is the largest producer of hybrid cotton seeds in India with a market share of ~15%. The company has access to 60,000 acres under seed production, with farms in Karnataka, Andhra Pradesh and across the country. The company has a pan-India presence with a strong distribution network of ~15,000 distributors (direct & in-direct) and retailers across 15 key states in India (up from 11,000 - 4 years ago). Kaveri has 26 warehouses at...

Kaveri Seed Company Ltd. is trading above all available SMAs

Kaveri Seed Company Ltd.

25 Nov 2019

1041.70

-2.18%

EARNINGS UPDATE- KAVERI SEED COMPANY LTD 2QFY20

Buy: Kaveri Seed Company Ltd.

Target

Chola Wealth Direct

Sector: Agri-Input /Small-Cap | Earnings Update 2QFY20 Background: Kaveri Seed Company is the largest producer of hybrid cotton seeds in India with a market share of ~15%. Kaveri Seeds has access to 60,000 acres under seed production, with farms in Karnataka, Andhra Pradesh and across the country. The company has a pan-India presence with a strong distribution network of ~15,000 distributors (direct & in-direct) and retailers across 15 key states in India (up from 11,000 - 4 years ago). Kaveri has 26 warehouses at strategic location with a combined...

Kaveri Seed Company Ltd. is trading above all available SMAs

Kaveri Seed Company Ltd.

14 Nov 2019, 12:00AM

1041.70

-2.18%

Below expectations; cotton growth strong but maize disappoints

Buy: Kaveri Seed Company Ltd.

Target

Motilal Oswal

12%), led by gross margin expansion of 370bp YoY. For 1HFY20, revenue/EBITDA/PAT increased 12%/16%/6% YoY. 87% YoY to INR356m, primarily driven by spillover of sales volume from the prior quarter to 2QFY20 (as the late onset of monsoon delayed the timing of sowing). Volumes thus increased 73% YoY to 0.52m packets and realization improved 8% YoY to INR684/packet in 2QFY20. Non-cotton revenue declined 26% YoY to INR418m due to lower maize volumes (-33% YoY to INR1.2m packets) on account of reduced government orders. (i) KSCL maintained its revenue growth guidance of 15-20% for FY20. (ii) Cotton volume growth guided at 10-15% for FY21. (ii) Capex of INR300-400m planned for FY20. Despite the miss in 2QFY20, we largely maintain our earnings estimates for FY20/21, given that ~75% of revenues are derived in the first quarter of a financial year. We value the company at 16x FY21E EPS and arrive at a target price of INR607.

Kaveri Seed Company Ltd. is trading above all available SMAs

Kaveri Seed Company Ltd.

15 Aug 2019, 12:00AM

1041.70

-2.18%

Volume growth strong across segments

Buy: Kaveri Seed Company Ltd.

Target

Motilal Oswal

Largely in-line performance: Revenue grew 13% YoY to INR6,555m (our estimate: INR6,588m). EBITDA increased 15% YoY to INR2,333m (our estimate: INR2,306m), with the margin expanding 60bp YoY to 35.6% (our estimate: 35%) led by operating leverage. Adj. PAT was up 9% YoY to INR2,289m (our estimate: INR2,367m). Non-cotton business drives revenues: Cotton revenue grew only 7% YoY to INR4,051m, despite volume growth of 13% YoY to 6.6m packets, due to lower realizations (-5% YoY to INR609/packet). Management expects volume...

Kaveri Seed Company Ltd. has gained 59.14% in the last 1 Year

Kaveri Seed Company Ltd.

26 Jun 2019

1041.70

-2.18%

EARNINGS UPDATE-KSCL 4QFY19 (2)

Buy: Kaveri Seed Company Ltd.

Chola Wealth Direct

Sector: Agri-Input /Small-Cap | Earnings Update 4QFY19 Background: Kaveri Seeds is the largest producer of hybrid cotton seeds in India with a market share of ~15%. Kaveri Seeds has access to 60,000 acres under seed production, with farms in Karnataka, Andhra Pradesh and across the country. In the last five years (FY13-18), company's standalone revenue and PAT have grown at a CAGR of 1.6% and 10.4% respectively. The company has a pan-India presence with a strong distribution network of ~15,000 distributors (direct & in-direct) and retailers across 15 key states in India (up from 11,000 - 4 years ago). Kaveri has 26 warehouses at strategic location with a combined storage space of ~600,000 sqft. The...

Kaveri Seed Company Ltd. has gained 59.14% in the last 1 Year

Kaveri Seed Company Ltd.

20 Feb 2019

1041.70

-2.18%

EARNINGS UPDATE-KSCL 3QFY19

Buy: Kaveri Seed Company Ltd.

Recommendation Target

Chola Wealth Direct

Kaveri Seed Company Ltd. is trading above all available SMAs

Kaveri Seed Company Ltd.

18 Feb 2019

1041.70

-2.18%

Maize was bitter - a miss on all fronts

Buy: Kaveri Seed Company Ltd.

Target

Motilal Oswal

Revenue declined 5% YoY to INR672m 18 February 2019 INR47m). The sluggish performance can be attributed to the fear of fall armyworm in maize, which dampened sentiment and led to lower acreage (note that majority of third quarter revenue is contributed by maize, where volumes declined 22% YoY). The downside to our estimate is the non-renewal of KSCLs license by the Andhra Pradesh government (got suspended recently for a year), which can impact FY20 revenue by 6-7%. Given this uncertainty, which might restrict the company from taking advantage of a likely positive cotton season in FY20, we cut our multiple from 17x to 15x (~10% discount to its three-year average multiple). We, however, find comfort from the companys reducing dependency on cotton business, with non-cotton share likely to rise up to 55% in FY21.

Kaveri Seed Company Ltd. is trading above all available SMAs

Kaveri Seed Company Ltd.

19 Nov 2018

1041.70

-2.18%

Non-cotton biz shines in an otherwise muted quarter

Buy: Kaveri Seed Company Ltd.

Target

Motilal Oswal

Operating performance disappoints: Revenue grew 8% YoY to INR752m (our estimate: INR849m) in 2QFY19. EBITDA declined 47% YoY to INR79m (our estimate: INR188m), with the margins shrinking YoY from 21.2% to 10.5%. Adj. PAT declined 43% YoY to INR119m (our estimate: INR261m). 1HFY19 performance: Revenue was flat YoY at INR6,571m, with the margin contracting 140bp YoY to 32.2%. Adj. PAT, too, was flat YoY at INR2,225m. Cotton biz subdued; Non-cotton showing promise: Cotton business revenue declined 44% YoY, with volumes down 25% YoY. This was partly due to the...

Kaveri Seed Company Ltd. is trading above all available SMAs

Is Kaveri Seed Company Ltd. worth buying?

304 Votes:

Buy 80.26%

Sell 13.49%

Hold 6.25%