Sunday, May 17, 2020

Kaveri Seed Company Ltd - Valuation Update & Price Tag


Kaveri Seed Company Ltd closes   at  376.45   with  a  Gain     of   +1.60 %   on    15-May- 2020   with formation of  a  Small Green  Candle    on Daily  Price Chart.
The company is expected to post  Revenue of Rs.885.90 Cr & Net Profit of Rs.242.70Cr (Last Year  Revenue of Rs.809.40 Cr & Net Profit of Rs.217.4 Cr  FY2019)  in FY2020 and Revenue of Rs.718.60 Cr & Net Profit of Rs.160.70 Cr in FY2021;  Revenue of Rs.913.80 Cr & Net Profit of Rs.252.90 Cr in FY2022 and Revenue of Rs.960.20 Cr & Net Profit of Rs.264.00 Cr in FY2023.
At CMP  it’s trading with   Margin of Safety (1Yr Bond Yield: Value>1 ) of 2.70.
Valuations  : The Company is now Trading at X0.6 of its Value ( last 4 Quarters earnings considered ) . We have valued the company with its full  Financial  year 2020 earnings  ( PAT ), which is now X0.57, a  Discount  of ~43 % to its Value ( EPV Method ) and X0.86 of its FY21 earnings with a Discount of ~14% ; X0.55 of its FY22 earnings with a Discount of ~45% and X0.52  of its FY23 earnings with a Discount of ~48%
Disclaimer : We are / may going to take exposure shortly.
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