Buy Kaveri Seed Company, target price Rs 665: ICICI Securities

ICICI Securities has buy call on Kaveri Seed Company with a target price of Rs 665. The current market price of Kaveri Seed Company is Rs 566.45 .

Time period given by analyst is one year when Kaveri Seed Company Ltd. price can reach defined target.

Kaveri Seed Company Ltd., incorporated in the year 1986, is a Mid Cap company (having a market cap of Rs 3340.96 Crore) operating in Agriculture/Horticulture/Livestock sector.


Kaveri Seed Company Ltd. key Products/Revenue Segments include Seeds for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 70.88 Crore, down -46.63 % from last quarter Total Income of Rs 132.81 Crore and up 3.50 % from last year same quarter Total Income of Rs 68.48 Crore. Company reported net profit after tax of Rs -11.82 Crore in latest quarter.

Investment Rationale
Kaveri has created strong value (FCF) over the past decade, and it remains positive on the medium-term growth outlook. It models the company to report revenue and PAT CAGRs of 15.4% and 39.1%, respectively, over FY22- FY24E. It arrives at a revised DCF-based TP of Rs665 (implying 9.4x FY24E EPS).

Promoter/FII Holdings
Promoters held 57.44 per cent stake in the company as of 31-Mar-2022, while FIIs owned 17.61 per cent, DIIs 6.95 per cent.