Kaveri Seed gains as domestic broker maintains buy rating

Capital Market 

Company was up 4.63% to Rs 547.90 at 15:11 on on media reports that a domestic brokerage house has maintained its buy rating on the stock with a target price of Rs 738.

Meanwhile, the S&P Sensex was up 333.21 points or 1.05% at 32,167.20. The S&P Mid-Cap index advanced 159.16 points or 1.01% at 15,963.75.

On the BSE, 73,000 shares were traded on the counter so far as against the average daily volumes of 63,769 shares in the past one quarter. The stock had hit a high of Rs 548.55 and a low of Rs 532.80 so far during the day. The stock had hit a 52-week high of Rs 708.10 on 7 August 2017 and a 52-week low of Rs 358.40 on 23 November 2016.

The stock had underperformed the market over the past one month till 11 October 2017, sliding 9.33% compared with the Sensex's 0.15% fall. The stock had also underperformed the market over the past one quarter, declining 15.82% as against the Sensex's 0.27% rise. The scrip had, however, outperformed the market over the past one year, gaining 23.04% as against the Sensex's 13.36% rise.

The mid-cap company has equity capital of Rs 13.81 crore. Face value per share is Rs 2.

The broker reportedly sees a sharp upside in the stock, citing attractive play of balanced growth in cotton and non-cotton businesses of Company.

Company's net profit rose 31.1% to Rs 202.38 crore on 19.6% growth in net sales to Rs 590.56 crore in Q1 June 2017 over Q1 June 2016.

Company makes hybrid seeds.

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First Published: Thu, October 12 2017. 15:09 IST