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 Varun Gupta's Stock Idea
Varun Gupta is Bullish on Kaveri Seed Company Ltd.
Idea Submitted on 22Oct,2021
  • 1 Total Ideas
  • 1 Active Ideas
  • 0 Closed Ideas
  • 0 Friends
  • 0 Followers
  • Avg. Returns
     -4.63%
    Success Rate
      0%
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      Buy Kaveri Seed Idea
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      Idea Status :  Active
    Idea is Open
     Time Frame
    1year
     Start Price
    526.45
     Target Price
    850
     Stop Loss
    264
     Projected Gain
    323.55 (61.46% Upside)
     Live Returns
    -24.35     -4.63%
     Analysis
    The company is buying back it's stock through open market at max. price of 850rs. if you check the fundamentals of the business it is a good business, it's reserves grew at C.A.G.R. of 17.8% in past 8 years, which is really good. it has good margins. and it has enough cash to cover 80% of its debt, its debt level is 36% of its assets. it's free cash flow has been very consistent, which shows the business has predictably low capital expenditure. Although it's usually medium term investment, business's fair value as per my valuation is around 750 rs. but buyback price of 850 rs. adds its value. so there is a bigger bargain here. And chances of losing money is virtually less. Although i do not use stop loss, (if a business is good, and it's cheap like selling 1 rupee at 50 p, if next quarter or year, you get the same business for 25p. doesn't mean business is risky, business is still same but people are over reacting. so stop loss here makes no sense, unless you are a speculator.) (I personally own this situation, and I own it based upon my research, if you buy this make sure you are financially and psychologically prepared. I am not responsible for your decisions.) Regards, Varun Gupta
     Stock Price Movement (EOD Basis)
     C.M.P Kaveri Seed
    502.1
    Sentimeter
    Buy Calls: 10 Sell Calls: 5
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