Kaveri Seed Company Limited

Kaveri Seed Company is engaged into research, production, processing and marketing of various high quality hybrid seeds. The Co. has 18 seed processing plants with a capacity of 143 tons per hour. It has a cold storage capacity of 31000 MT. It has over 10,00,000 square feet of state-of-the-art warehouse facilities to accommodate 75,000 metric tons of seed storage.It possesses a state of-the-art maize cob drying facility capable.generating a substantial output of 4556 MT in each production cycle and dedicated cotton delinting capacity of 15 MTPD.  The Co. has a significant domestic presence with 98% revenue share. It has seen rising growth in the export market as well, which includes Pakistan, Sri Lanka, Bangladesh, and Vietnam. It has also expanded presence in the Middle East (UAE) and Africa (Nigeria). In FY23, Bangladesh contributed major export revenue. On 30th September, 2022, the Co. received a demand notice for ~Rs.73 crore from the Income Tax Authorities for the AY 2020-21 mainly by disallowing the exemption of agriculture income claimed by it. As of FY23, 57 Cr of disputed tax is still pending.  The financials of the company looks average, RoNW is 16.3% and at CMP its looks fully priced. Price difference is around 10% and acceptance ratio as per current share holding for retail will be around 10%, so final buyback ration may be near to 20%. So we give AVOID rating to this buyback, those who are currently holding may participate in buyback.

• 1 Mr. Rajesh Pirogiwal
• 2 Mrs. Sunita Pirogiwal
• 3 Miss Tanvi Pirogiwal