Kaveri Seeds, an agri-input company, aims to strengthen its position in the under-penetrated rice market to drive growth over the next three to four years, its management told analysts at a recent meeting.
"We recently met the Kaveri Seed's management to get a sense on the industry as well as the company's business...The under-penetrated rice market is the next big opportunity for the industry as well as Kaveri," Manoj Bahety and Manish Mahawar, analysts with Edelweiss Securities, wrote in their notes to clients.
India has around two million hectares under hybrid seed in rice crop. Kaveri Seed expects the area under rice hybrid seed to more than double to 4-5 million hectares in the next three to four years. This is likely to drive the company's business growth. Kaveri Seed currently has 7% market share in this market.
The company also aims to improve its market share in hybrid seed in cotton crop. "Kaveri Seed has increased its market share from 5% in FY12 to 10% currently, and will enhance it to 15 per cent over the next two to three years on back of a differentiated and high yielding seeds portfolio," the analysts said.
Edelweiss Securities do not have any rating on the stock. At 1:05 pm, Kaveri Seed shares were traded at Rs 1,065.95 on the National Stock Exchange, up 0.2% from previous close.