InvestorQ : What has driven the stock of Kaveri Seeds to a 52-week high in the midst of this pandemic?
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What has driven the stock of Kaveri Seeds to a 52-week high in the midst of this pandemic?

Answer
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3 months ago


Kaveri Seeds on 17 June gained 4.5% to touch a new yearly high of Rs.630 in an otherwise tepid market. The stock has already rallied 50% in the month of June after the IMD announced normal monsoons and the Agri growth at 4% was actually flattering for the stock. Even the numbers reported were quite strong with EBITDA margins rising from 5.23% last year to 29% this year. Net sales were up 18.3% at Rs 63.12 crore for the May-20 quarter while the net profits turned around to Rs.7.57 crore from a net loss of Rs.11.09 crore last year. The normal monsoon forecast will ensure normal sowing area for key crops and the new hybrids scale-up in hybrid paddy, cotton & maize will sustain the growth trajectory. The agricultural sector has been the least impacted by COVID-19 and the impact on the rural segment is also minimal.