Buy Kaveri Seeds with a long-term view: Prashastha Seth

In a chat with ET Now, Prashastha Seth, Sr Fund Manager, IIFL Wealth, India Infoline, talks about agri companies.

ET Now: Some of the agri companies, they have been in focus but most people speaking about how the commodity prices seem to be topping out. You would turn a bit cautious on any of these agri themes?

Prashastha Seth: Agri companies you have to buy with a 2-3 year view. There are a lot of agri companies, something like a Kaveri Seeds, which are at reasonable valuations and where there is significant upside from current levels as well. It is just a question of some of them moving very sharply over the last 1-1.5 years, so you need to be slightly cautious and buy with a long-term view but if you buy with a long-term view, you will make money because with the kind of money that is flowing in into Indian agriculture because of the better crop prices that the farmers are getting, you would probably see more and more use of better technology and seeds, so companies with decent cash flows, a decent balance sheet in the agri space will do well.