Kaveri Seed can test Rs 500: Satish Betadpur

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Kaveri Seed can test Rs 500: Satish Betadpur

Kaveri Seed can test Rs 500, says Satish Betadpur, MD of IIR Group.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See previous views by Satish Betadpur See what other Experts & Brokerages are saying about Kaveri Seed Co See messages about Kaveri Seed Co Kaveri Seed Co BSE | NSE 01/06/12 Are Mutual Funds betting on Kaveri Seed Co?

Kaveri Seed can test Rs 500, says Satish Betadpur , MD of IIR Group.

Betadpur told CNBC-TV18, "Kaveri Seed Company is a spectacular grower in its sector. Company's earnings have been exploding from Rs 7 a share in 2007 to almost Rs 30 a share in next year. So the stock is trading at under 10 times earnings and on a DCF valuation, this stock is worth Rs 500."

The company's trailing 12-month (TTM) EPS was at Rs 27.08 per share. (Jun, 2010). The stock's price-to-earnings (P/E) ratio was 10.79. The latest book value of the company is Rs 112.49 per share. At current value, the price-to-book value of the company was 2.6. The dividend yield of the company was 0.68%.

Disclosure: My clients and I may have personal holding in the above stock.