What Ails Kaveri Seeds ?

Thanks Buddy!.. Some of these stocks are new to me. Will look at them and share any thoughts / questions I have about them.

 

some links with recent developments, could help
https://www.livemint.com/Politics/d...CICR-may-bring-down-seed-cost-of-farmers.html
https://in.reuters.com/article/2015/11/06/india-cotton-pests-idINKCN0SU17M20151106

PS : not invested or considering Kaveri Seeds, hold Monsanto & looking at Bayer CropScience

 

Things are freaking getting crazy with this stock and sector!. Looks like a sure shot race to 400 and below in the short-term.

Hey between whats you take on Bayer and Monsanto, both are kind of close to their 52-Wk low rt?.

 

The combination of political implications (local & global), subsidies, regulations & controls and the fact that it lacks any IP, I'm not investing. Even sold some sugar stocks which I held for like 5 years and some trades in October.

Bayer is ~ 50% up from yearly low, yet to purchase.
Monsanto is close to yearly low.
The parentage of both these companies, zero debt, innovation, IP is what I'm considering.

 

Kaveri Results for Q2 are out!

Kaveri seeds reports net loss of Rs 47.52 cr in Q2

Read more at: https://www.moneycontrol.com/news/r...4752-crq2_4131641.html?utm_source=ref_article

 

Very bad results

 

Investor Presentation for Q2

 

Deven Choksey said something which seems very apt - geography for these businesses. He gave the example of Advanta.
"One of the most important learning that we have in particularly in seeds business is that you cannot probably bet against the nature. That is what the important aspect is, when you look at the valuations."
https://economictimes.indiatimes.co...aphies-deven-choksey/articleshow/49815854.cms

 

Thanks Buddy!.. Very helpful

 

Kaveri Seeds really tests everything one thinks they know about investing They are also a bunch of very savvy guys who have presented the dismal data in the best possible way. Long term trend intact. Now what is one supposed to do ? I suppose buy slowly with the intent of offloading at least 40% by end of q1 17.

 

post Q2 results India Nivesh maintains a buy with lowered target from ₹750 to ₹504!

 

Total mockery!

 

not my view Srouta, just sharing a report which i had since Kaveri Seeds was/is many people's darling stock

 

Sorry I meant that the research report is total mockery because the TP is just adjusted as per whim and fancy.

 

at least this is just a research report, credit rating reports are custom made!

 

LOL!

 

May be this would help the likes of Kaveri Seeds. Got this form ET

"Blow to Monsanto as agriculture ministry set to control cotton seed prices"

Read more at:
https://economictimes.indiatimes.co...l-cotton-seed-prices/articleshow/50145857.cms




In what could prove a major setback to the global hybrid seed giant Monsanto, India's agriculture ministry has decided to control the prices of cotton seed, including the genetically modified versions and their trait value.

The Ministry of Agriculture, Cooperation and Farmers Welfare on 7 December has firmed up the Cotton Seeds Price (Control) Order 2015, terming it as aimed at ensuring availability of cotton seeds to farmers at "fair, reasonable and affordable prices".
The move of the ministry comes in response to a series of representations made by the domestic hybrid seed manufacturers, who sought the government's intervention to rein in the American seed giant Monsanto on trait value of Bt cotton seed. A Mahyco Monsanto Biotech (India) spokesperson said the company just received a copy of the order and was in the process of reviewing. "We will be in a position to comment only after we understand the order in its entirety," said the spokesperson. ..
"As a leading player in India's agriculture sector, Monsanto remains confident that the government will take into account views of all stakeholders and will continue to encourage innovation in Indian agriculture." The local seed makers moved the agriculture ministry after the American hybrid seed giant Mahyco Monsanto Biotech (MMB) refused to bring down the royalty payments and return the excess royalties they paid from 2010.

The Indian hybrid seed producers appealed to Monsanto to reduce trait values weeks after certain state government began fixing caps both on royalty amounts the seed makers pay to obtain seed technologies and on selling prices of hybrid cotton seed to farmers.

 

Thank you. Personally, I have decided to stay away from this sector because weather and politics are key outcome influencers. While we can argue which of the two is more unpredictable and destructive, there is no doubt they introduce volatility in earnings and sentiment.

 

Kaveri Seed Company Ltd has informed BSE that the following :

"With reference to the mail dated December 24, 2015 received from M/s. Sarath & Associates, Chartered Accountants, Hyderabad, informed the Company that SEBI vide letter dated December 15, 2015 appointed their Firm to conduct Forensic Audit of Kaveri Seeds and requested the Company to keep all the records and information available to them.

However, the Company has not received any communication/letter from SEBI.

In this regard, the Company would like to submit to the Stock Exchanges/Shareholders that the Company would co-operate and arrange all the required data to the Audit Firm and it has the confidence in its business and financial systems and processes including internal and statutory audits."

If it's too good to be true, it probably is.

 

@ Mr Fun_Da_Mentalist - Kindly apprise us of your latest take on Kaveri Seeds.