Motilal Oswal has given Buy recommendation for Kaveri Seeds recommended buy rating on the stock with a target price of Rs 710 in its researc with a target price of Rs. 710 in its research report issued on May 24, 2022

Motilal Oswal’s research report on Kaveri Seeds

Revenue fell 6% YoY in FY22 due to lower cotton/maize (down 24%/16%) volumes. Cotton seed volumes were impacted by lower cotton acreage and the use of illegal herbicide-tolerant Bt (HTBt) seeds, which impacted sales of branded seeds. Maize volumes fell due to no sales to the government.

Outlook

We largely retain our FY23/FY24 earnings for KSCL. We value the stock at 12x FY24E EPS to arrive at our TP of INR710. We reiterate our Buy rating.

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