I don’t track Kaveri seeds. I think the problem with the company is that there is a perception about it that it will find it difficult to grow as addressable market is limited. Even if you see the numbers for last 3 years, sales has been stuck in the 900 crores(plus or minus) range. Companies which are perceived as no growth or low growth do not attract very high valuations or high investor interest.
This is another example to show us that our focus should not be on what the DIIs or FIIs are doing, or whether they are increasing or decreasing their stake in the company… Imagine Mohnish Pabrai had invested huge sums of money in this company and ultimately had to take an exit.
The main thing to look in the company is opportunity size, scalability and management/promoter quality in that order. Instead of that a lot of investors waste their time looking at what kind of holding FII/DII have in the company and whether it is increasing or decreasing.
The other aspect you have highlighted is of Nifty being close to 18000 level. I suggest you read Peter Lynch’s One up on Wall street, if you have not read it and if you have read it, then re read the chapter on When to invest. There is no right or wrong time to invest in a company based on market levels. We have seen projections of Nifty touching 14400 in one of the threads when it was around 15300. If one would have waited for 14400, or scared about investing in a company looking at market fall, then he/she would have missed this near 2000 point rally in nifty where a lot of stocks , some of them even large caps have gone up by 20-30% or more. Our focus has to be in the company we want to invest in, its business and all things related to it. Rest is all noise.
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