Kaveri Seed Company Ltd

NSE: KSCL BSE: 532899

₹949.15

(0.23%)

Wed, 27 May 2026, 04:41 pm

Market Cap48.88B

PE Ratio15.97

Dividend0.53

Process Industries

Agricultural Commodities/Milling

24.5K

Kaveri Seed Company Analysis

Pros

Dividends per share have increased over the past 10 years.
Dividends paid are thoroughly covered by earnings (13.9x coverage).
Dividends after 3 years are expected to be well covered by earnings (5.9x coverage).

Cons

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
Kaveri Seed's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
Kaveri Seed's dividend is below the markets top 25% of dividend payers in India (3.08%).

Pros

Cash flow for Kaveri Seed is expected to increase by more than 50% in 2 years time.
Kaveri Seed's earnings are expected to exceed the low risk growth rate next year.
Kaveri Seed is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
Performance (ROE) is expected to be above the current IN Food industry average.
Kaveri Seed's revenue growth is expected to exceed the India market average.

Cons

Kaveri Seed's earnings are expected to grow by 7% yearly, however this is not considered high growth (20% yearly).
Kaveri Seed's earnings growth is positive but not above the India market average.
Kaveri Seed's earnings growth is positive but not above the low risk savings rate of 7.2%.
Kaveri Seed's net income is expected to increase but not above the 50% threshold in 2 years time.
A decline in Kaveri Seed's performance (ROE) is expected over the next 3 years.
Kaveri Seed's revenue is expected to increase but not above the 50% threshold in 2 years time.
Kaveri Seed's revenue is expected to grow by 9.3% yearly, however this is not considered high growth (20% yearly).

Pros

Kaveri Seed is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Kaveri Seed is profitable, therefore cash runway is not a concern.
Kaveri Seed is profitable, therefore cash runway is not a concern.
Debt is well covered by operating cash flow (3312.7%, greater than 20% of total debt).
Debt is covered by short term assets, assets are 217.5x debt.
Kaveri Seed's cash and other short term assets cover its long term commitments.
Interest payments on debt are well covered by earnings (EBIT is 475.5x coverage).
Kaveri Seed's level of debt (0.6%) compared to net worth is satisfactory (less than 40%).

Cons

The level of debt compared to net worth has increased over the past 5 years (0.2% vs 0.6% today).
High level of physical assets or inventory.

Pros

The tenure for the Kaveri Seed board of directors is about average.
Gundavaram Venkata's remuneration is about average for companies of similar size in India.
Gundavaram Venkata's compensation has been consistent with company performance over the past year, both up more than 20%.
More shares have been bought than sold by Kaveri Seed individual insiders in the past 3 months.

Cons

Pros

Cons

Pros

Kaveri Seed's 1-year earnings growth exceeds its 5-year average (19% vs 0.9%)
Kaveri Seed's year on year earnings growth rate has been positive over the past 5 years.
Kaveri Seed used its assets more efficiently than the IN Food industry average last year based on Return on Assets.
Kaveri Seed has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Kaveri Seed has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).

Cons

Kaveri Seed's earnings growth has not exceeded the IN Food industry average in the past year (19% vs 20.5%).

Pros

532899 outperformed the Food industry which returned 18.8% over the past year.
532899 outperformed the Market in India which returned -14.5% over the past year.
BSE:532899 is up 60% outperforming the Food industry which returned 5% over the past month.
BSE:532899 is up 60% outperforming the market in India which returned 8% over the past month.

Cons

Kaveri Seed's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
Kaveri Seed's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
Kaveri Seed is overvalued based on assets compared to the IN Food industry average.
Kaveri Seed is poor value based on expected growth next year.
Kaveri Seed is overvalued based on earnings compared to the IN Food industry average.
Kaveri Seed is overvalued based on earnings compared to the India market.