Kaveri Seed Company Ltd
Other Agricultural Products
Market Cap.: ₹ 3,128.54 Cr.
Current Price: ₹ 453.05
Book Value: ₹ 156.07
Stock P/E: 18.98
Dividend Yield: 0.55%
Face Value: ₹ 2.00
Company is virtually debt free.
Company has a good return on equity (ROE) track record: 3 Years ROE 36.29%
Net profit 160
Even after this much correction the company is still not cheap.
Replication of seed by smaller organizations.
copy within 2 years
High entry barriers
not so serious farmers? Can re-use last years bought seed crops one or two times? Who care for next crop when right now I can manage without spending a penny.
Can buy if price further goes down?
too much relation with monsoon..
But has potential for sure
expanding away from cotton into Paddy etc which can be good for long term. So management is thinking in long term. Investing to keep up the business.
gov regulation on price will always be there for India.
successive bad monsoon
hybrid paddy millet corn
inventory pile up
If no better option kaveri can be good
all bad things happened in one go
Good shareholder letter
growth was too steep in last years may be not now or may have reached the peak and only downside from there
still a costly stock so why opt?
I guess I should sell if price is right
No pricing power
may have brand but what is use of brand if no pricing power
external dependency for technology
Donald has also left the company ..
Final Verdict: There are many other options
I am very new to value investing and this is me taking random notes just for myself. Please don’t base any of your decision on these write-ups. That will be foolish.