Kaveri Seed Co: Robust growth outlook despite weak rainfall

Robust growth outlook despite weak rainfall: Motilal Oswal

Shift from soya to cotton and corn to drive acreage growth

Though the monsoon in Andhra Pradesh has suffered a two-week delay, this is unlikely to impact the sale of cotton seeds. Our channel checks suggest that farmers are likely to purchase the best available seeds.

– The sale of KSCL’s Jadoo brand has increased ~20-25% and its ATM brand cotton seeds are out of stock in Maharashtra and North India.

– With the success of ATM, we remain confident of structural market share gain and growth in the cotton segment. This should drive a re-rating

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