The share price of one of the largest seed firms gained 7.7 percent to Rs 660.30 per share after the company board planned to consider a share buyback in an upcoming board meeting.
On Monday, Kaveri Seed Company Ltd shares closed at Rs 646 per share, up 5.39 percent from the previous close price on the National Stock Exchange. The company has a market capitalization of Rs 3,629 crore.
According to the company’s exchange filing, the company’s board of directors is to consider the buyback of equity shares at their board meeting on January 5, 2024.
The company shares have gained a return of 27 percent in the last six months and 26 percent in a year.
The company’s revenue has slightly increased from Rs 167 crore in Q2FY23 to Rs 171 crore in Q2FY24. During the same period, Net profit has also increased by 180 percent from Rs 5 crore to Rs 14 crore.
Kaveri Seed Company is engaged in the research, production, processing, and marketing of various high-quality hybrid seeds. It has 125 plus high-quality hybrids and varieties developed across field and vegetable crops. It is present in 12 Agro-Climatic zones of India which cover 18 states of India.
The company’s export business increased by 146.49 percent on account of expansion to new geographical areas, and Maize Export sales Volumes increased by 129.91 percent and revenues by 140.52 percent.
The company exports its products to countries like Tanzania, Algeria, Ivory Coast, Thailand, the Middle East, and Bangladesh. The company is expecting good growth in Maize crops in Q3, as the company is focusing on some states like Telangana and Karnataka, Western Maharashtra, and Assam.
Written by Omkar Chitnis
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