Share Trading Tips

Kaveri Seeds (Rs. 239.00) (Code : 532899) :- Co. is mainly into the business of production, processing and marketing of high quality hybrid seeds for different crops like corn, sunflower, cotton, paddy, grain sorghum, vegetables etc. and has lately forayed into micronutrients and bioproducts. It also produces non-hybrid seeds, primarily for paddy. For future, company believes in extending cropped area & diversifying crops by adding newer ones for agri- seed business. Last fiscal Red gram, onion, mustard and wheat were new additions to its crop portfolio. Simultaneously, it launched several new hybrids of sunflower, cotton and bajra in the market. Remarkably, company has an ongoing research objective of breeding for drought tolerant hybrids, which gives an edge in the market hit by low soil moisture levels. Financially also it is doing well as its bottomline almost tripled to Rs 31 cr on 10% higher sales of Rs 200 cr for FY10. The OPM improved significantly to more than 27% from nearly 15% in FY09. For the year ending
March’10 it posted an EPS of Rs31 on equity of Rs 10 cr. The potential of hybrid seeds is tremendous in India being an agricultural economy and
gaining special thrust from government of India. At market cap of Rs 300 cr its reasonably valued, so investors should accumulate at sharp declines.