Betadpur told CNBC-TV18, "Kaveri Seeds is a producer of high quality and hybrid seeds for corn, sunflower, cotton and rice. The reason we like this stocks is, we have had good monsoons and that is usually a very good driver for seed growth in the upcoming quarters. The company went public in 2007, at that point had an Rs 7 EPS, next year they will be earning almost Rs 30 EPS."
He further added, "This company has shown over the past three year's consistent revenue on EPS growth. So at Rs 30 EPS for next year the stock is trading at under 10 times earnings. Compared to Monsanto India this stock is almost at a 50% discount to Monsanto. Or if you look at other stocks that are in the similar type of industry such as Rallis India, they are trading at a very significant discount. So this stock on a fundamental DCF valuation we get Rs 500 very easily. Our day target for this is Rs 310."
