Presenting to you 2 quality stocks which are proven multibaggers with great fundamentals and continue to show the mettle to give fabulous returns in the future. The two stocks are from the Food & Agriculture industry. Read on to make great investment decisions.
KRBL Ltd
KRBL Ltd is a leading name in Indian rice industry and has spent three generations perfecting the Basmati grain.
With a 120 year heritage, KRBL Ltd is India’s 1st integrated rice company with a comprehensive product chain and has been in existence since 1889.
KRBL Ltd was awarded the ‘MERA BRAND’ by Consumer World Awards as India’s most preferred brand in 2007 and 2008.
The company was awarded the APEDA Award, Golden Trophy, for the largest exporter of Basmati Rice in 2007-08 and 2008-09.
KRBL’s consolidated net profit rose to Rs 81 crores in Quarter 2 FY15 in comparison to Rs 75 crores on a year-on-year basis.
FY15 could be a highly prosperous year for KRBL with stable growth being observed in Agriculture and the company showing impressive profits.
KRBL is India’s top rice exporter and owns the brand India Gate Basmati Rice.
Fundamentals:
The stock is currently trading at Rs 115.65, above the book value of Rs 43.33.
The valuation of the company is 9.94x times and is marginally cheaper than the sector’s valuation of 10x times.
The EPS (Earnings per share) is Rs 11.69.
The stock made a 52 week high of Rs 123.30 and a 52 week low of Rs 38.60.
The stock made a lifetime high of Rs 123.30 on the 20th of January 2015 and a lifetime low of Rs 1.02 on the 29th of January 2002.
The current ratio is excellent at 6.02 and the interest coverage ratio is also very healthy at 5.99.
The PAT (Profit after taxes) has gone up from 2013’s Rs 129.86 crores to 2014’s Rs 255.11 crores. (Consolidated income statement).
The Average Daily Movement is 4.68.
Kaveri Seed Company
Currently Kaveri is one of the fastest growing seed company in India with a large network of over 15,000 distributors and dealers spread across the country.
The company has over 700 employees and a strong product line of hybrids.
The company is poised to go greater heights with its renewed focus on R&D and strong intent to invest in innovation by the management to deliver all brand promises.
With one of the largest anthology of crop germplasm in the country, Kaveri’s prolific portfolio (inclusive of Cotton, Corn, Rice, Jowar, Bajra, as well as vegetable such as Tomato, Okra and gourds) are draught and disease resistant and a high yielding hybrid.
They are trend setters in the seed sector and exceed customer expectations in quality, responsiveness and delivery.
Kaveri Seed Company’s net profit jumped to Rs. 325.91 million against Rs. 90.09 million in the corresponding quarter ending of previous year, an increase of 261.76%.
Revenue for the quarter rose by 88.49% to Rs. 1816.39 million from Rs. 963.65 million, when compared with the prior year period.
Stock analysts are bullish on this stock.
Fundamentals:
The stock is currently trading at Rs 764, above the book value of Rs 75.28.
The market cap of the company is Rs 5,339.46 crores.
The valuation of the company is 17.62x times and is cheaper in comparison to the industry’s valuation of 33.99x times.
The current ratio is 1.16 and the interest coverage ratio is excellent at 945.96.
The stock made a 52 week high of Rs 1025 and a 52 week low of Rs 384.01.
The stock made a lifetime high of Rs 1025 on the 12th of September 2014 and a lifetime low of Rs 23.20 on the 13th of January 2009.
The PAT has increased from 2013’s Rs 128.07 crores to 2014’s Rs 209.17 crores.