Kaveri Seed hits 52-week high, surges 58% in 13 days on strong Q4 results

The company reported Ebitda of Rs 18.31 crore in Q4FY20, as against loss of Rs 2.79 crore in Q4FY19

Shares of Kaveri Seed Company continued their northward movement, gaining 4.5 per cent, to quote at Rs 630 on the BSE on Wednesday in an otherwise weak market. The stock of the agriculture products company was trading at its 52-week high level after ralling over 50 per cent thus far in the month of June.

In the first 13 trading sessions of this month, Kaveri Seed Company has surged 58 per cent after it reported a strong operational performance for the quarter ended March 2020 (Q4FY20).

The company reported Ebitda (earnings before interest, taxes, depreciation, and amortisation) of Rs 18.31 crore in Q4FY20, as against loss of Rs 2.79 crore in Q4FY19. Ebitda margins (excluding other income) stood at 29.01 per cent, compared to negative 5.23 per cent in the year-ago quarter.

Net sales during the quarter increased 18.3 per cent year-on-year (YoY) at Rs 63.12 crore, while consolidated net profit stood at Rs 7.57 crore against loss of Rs 11.09 crore in the corresponding quarter of the previous fiscal.

"The commodity prices are expected to be stable with a normal monsoon forecast translating to good farmer sentiment for coming year for all crops. The normal monsoon forecast will ensure normal sowing area for key crops. The new hybrids scale up in hybrid paddy, cotton & maize will continue the growth trajectory for the company," the management said.

With minimal impact of Covid-19 expected on agriculture sector, overall outlook for seed business remains positive, it added.

At 09:35 am, the stock was trading 3 per cent higher at Rs 619 on the BSE, as compared to 0.08 per cent decline in the S&P BSE Sensex. A combined 330,000 equity shares have changed hands on the counter on the NSE and BSE till the time of writing of this report.