Saturday, 14 May 2016

After Sugar, Next is AGRI - JK AGRI GENETICS LTD


BSE: 536493
CMP: 389
52 WEEK HIGH: 620
52 WEEK LOW: 389

JK Agri Genetics Ltd.(JKAL), is a leading seed company established in 1989 with its headquarters at Hyderabad, Andhra Pradesh(India). JKAL is engaged in research and development, production, processing and marketing of Cotton, Maize, Paddy, Pearl Millet, Sorghum , Sunflower, Castor, Mustard, Wheat, Sorghum Sudan grass, Fodder beet, Tomato, Okra, Chillies and other vegetable seeds.

The company just announced its Q4 numbers and have surprised with small profits which is rare in the march quarter,
For the full year 2016 the company has clocked Sales of almost 189 crores with net profit of 8.01 crores and annualized EPS stands at 22.25.
At cmp 389, the stock is trading at almost 17 x P/E.

Last year Monsoon had a huge short-fall, this time  Monsoon is expected to be very good.
I think the company can do well in FY17-18 with good monsoon.
It was recently reported that there has been shortage of Corn (Maize) seeds and the stock of Monsanto rallied 40% last week on the same news.

Maize Seeds is a key product for JK AGRI GENETICS LTD too.

Peers of JK AGRI trade at rich valuations with Monsanto commanding a p/e of 50 odd, Advanta commanding p/e of almost 40. But these companies are doing much better than JK AGRI and at a much larger scale.

Going forward from here i expect good movement in JK AGRI both business wise and Stock price action wise.

There is also one IPO of a seed company expected sooner or later (nuziveedu seeds)

After recent mad rally in Sugar Sector, i expect the market focus to be drawn towards Agri sector (fertilizers,seeds,agri chem) which is the back bone of India and a major thrust area for the Modi government.

I feel both (traders/investors) can look at JK AGRI GENETICS LTD for both short and long term opportunities.

That's all for now, even though we do not discuss micro and too small cap stocks in a detailed way here anymore, i thought this one was worthy of a post... Will post more such stuff as and when i notice.

Happy Reading!

Note: The above is not a research report but information as available on public domain and it should not be treated as a research report.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

Disclosure: It is safe to assume that i might have JK AGRI GENETICS LTD in my portfolio and hence my point of view can be biased. Readers should consult their financial advisory before any investments.


  1. Jk agri, insectisides, kaveri seeds are worth investing.

  2. The ace investor blog has recommended this stock. it will have some movements soon. Beware not to be locked in the stock for others to make money. I dont say do not invest in his recommendations, but be smarter than him and exit from the stock before he do.
    this artical i have seen in a web. Prem i am not blaiming u, but please never become as that person saying, because we trust u a lot.....

    1. Ajay Ji even though i did not understand what you meant but i am pretty clear this might be a theme in the market (Agri theme in the market after Sugar jump)

  3. Hello sir, please tell u r view on mpl plastics

  4. JK Agri is now declining, shall i exit the stock or should i hold ? I had bought at 420

    1. Depends on your horizon, if you feel agri story for monsoon is over.. take your call and exit.

  5. HI Sir,
    what is your view on Sudit Industries Ltd.

    1. I believe your question is on SUDITI Industries, i don't closely track it.. The news of Yuvraj Singh investing was there and that had propped it up.

  6. Hello sir,

    what is your view on AAREY DRUGS & PHARMACEUTICALS LTD. I brought this shares at 35.00 Levels, now i am in 30% profit. shell i add some more stocks.. in this level.

    1. Not enough financial backing of this stock (Result wise nothing impressive) i think this is a good opportunity for booking profits.

  7. Hi sir,

    What about Associated Alcohols. Shell i book loss in this level or keep..

    1. Hi, I am still hopeful about this company.. however i need to take a look at recent financial performance of the company, i have been getting some mails also drawing my attention which i will take a look on and review.

      Kindly e-mail me i wish to have a conversation with you.

  8. Ace,
    Heard recently that the govt has put a cap on the seeds price.

    How do you think it will affect the biz growth of JK Agri?

  9. Hi..Could you please give your views on Kiri industries.?

  10. Sir pls Share ur views on syncom formula

  11. Hi Aceji, Have sent you a mail on Gujarat Automotive Gears about latest development. Requesting to take a look at it. Thanks.

  12. Replies
    1. Not good set of results, but i think the company can do well, result might be impacted due to the expansion too, from here next Quarter will be crucial to evaluate how post expansion the company is doing.

  13. Ur views on meghmani organics, bodal chemicals and kiri industries. Which one is value buy at cmp??