Buy Kaveri Seeds; target of Rs 700: Chola Securities

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26 Aug, 2025 12:21

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Chola Securities's research report on Kaveri Seeds

Kaveri Seeds is the largest producer of hybrid cotton seeds in India with a market share of ~15%. Kaveri Seeds has access to 60,000 acres under seed production, with farms in Karnataka, Andhra Pradesh and across the country. In the last five years (FY13-18), company’s standalone revenue and PAT have grown at a CAGR of 1.6% and 10.4% respectively.

Outlook

At CMP of INR 539, the stock is trading at valuation of 14.4XFY19E and 12.7XFY20E earnings. We are valuing the company 16.5XFY20E EPS to arrive at a target price of INR 700 (earlier: INR 705) and maintain a BUY rating. Risks: Kaveri has high concentration risk and derives ~60% of its revenue from cotton seeds and lint.

For all recommendations report, click here

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