Kaveri Seed Channel Check Update: IndiaNivesh

In our coverage Kaveri would emerge as the biggest beneficiary from the on-going on-ground developments. Kaveri is a one of the leading hybrid category BT-Cotton seed manufacturer (56% of FY14 revenue). The company is expected to report 23% revenue CAGR (FY14A-16E) on back of strong market positioning, high entry barriers and continues new product launch. At CMP of Rs.663, the stock is trading at P/E multiple of 17.2x FY15E and 14.1x FY16E based on Bloomberg consensus earnings. We maintain BUY with target price of Rs.754, based on 16x FY16 EPS.

Download Kaveri Seed Update by IndiaNivesh