🌟 At a glance:
- FY25 PAT: ₹265.2 crore
- Revenue: ₹1,121.6 crore (+5.6% YoY)
- Q4 Loss: ₹22.9 crore (vs ₹0.27 cr last year)
- Operating Margin (Q4): –18.3% 😬
- CMP: ₹1,350.90
🌱 About the Company
Kaveri Seed Company Ltd is one of India’s largest agriculture-focused biotech firms, producing hybrid seeds for cotton, maize, rice, bajra, vegetables, and more. With strong R&D and pan-India distribution, it plays a key role in Indian farming cycles.
👨🌾 Key Managerial Personnel
- MD: G.V. Bhaskar Rao
📊 FY25 Financials
| Metric | FY25 | FY24 | YoY Change |
|---|---|---|---|
| Revenue | ₹1,121.6 cr | ₹1,062.2 cr | +5.6% |
| PAT | ₹265.2 cr | ₹253.1 cr | +4.8% |
| Q4 Revenue | ₹102.9 cr | ₹123.3 cr | –16.5% |
| Q4 PAT | –₹22.9 cr | –₹0.27 cr | Huge Loss |
📉 Q4 Disaster Zone
- Weak seasonal performance caused a massive Q4 loss
- Margin crash to –18.3% from slightly negative last year
- High fixed costs and poor crop cycle blamed
🧮 Forward Fair Value Estimate
- Let’s assume PAT CAGR of 10% → FY27E PAT ≈ ₹350 cr
- P/E Benchmark = 18x (Agri-biotech sector average)
- Target Market Cap = ₹6,300 cr
- With ~1.5 crore shares outstanding → FV per share = ₹418
- Current Market Price: ₹1,350.90 → Richly valued
🌦️ Industry & Growth Outlook
- Cotton, maize, and vegetable hybrids remain core revenue drivers
- Weather, monsoon, and govt seed policy remain major risks
- Domestic demand for hybrids is growing, but competition is intense
😂 EduInvesting Take
- FY25 looks calm, but Q4 was a faceplant. Like tripping over your own shoelaces at harvest season.
- That Q4 loss has the boardroom asking: “Yeh kya beej diya humne?”
- CMP suggests the market is pricing perfection in a highly seasonal biz
- Verdict: “Priced for perfection, praying for rain. Hold with caution.”
