JK Agri Genetics

JK Agri Genetics  - Bright future and solid fundamentals

 J.K. Singhana group is founded over 100 years ago, is an eminent industrial group in India. JK Agri Genetics Ltd (JKAL) is a leading agri-biotech hybrid seed company with pan Indian presence. Its activities include plant breeding & biotechnology research, seed production, processing and marketing of hybrid seeds of various field crops viz. Cotton, Rice, Jowar, Bajra, Maize, Sunflower, Wheat, Mustard and Vegetables viz. Tomato, Okra, Chillies, Brinjal, Gourds, Melons etc. The company has earned name for itself amongst the farming community through its quality products. Manned by a highly qualified, experienced and motivated team of over 80 scientists working on a standard mandate in company’s strategically situated 7 breeding research centers and 23 multi location trial centers covering all agro-climatic zones of India. Company has several collaborations with National and International Institutes to develop distinguishable hybrids for the customers. First Indian company to have indigenously developed and commercialized Bt Cotton.

 Reviving the deteriorating state of agriculture in India has been a key focus of Modi’s agenda. In Budget 2015 FM allocates Rs 8.5 lk cr for agri farm credit in FY16 for development of agriculture with emphasizes on reforms, credit facility and financial assistance. JK Agri is best placed to capitalize the opportunity of  'Make in India' success story due to below facts.

 National Research Collaborations :

• Two MOUs with BSSKV, Dapoli for Gambiaca Cytoplasm of rice and the hybrid JKRH2005.
• MOU with PDKV Akola for collaboration on cotton hybrid development.
• Member of NMITLI project of CSIR for rice and cotton hybrids.
• Two MOUs with DRMR for mustard breeding and NRCDR-2.
• MOU with DRR for rice hybrids DRRH-2 and DRRH-3.
• MOU with CCSHAU for two wheat varieties.
• MOU with IARI for extra long aromatic rice hybrid  RH-10.
• MOU with Intelli Biotechnology for Dihaploid production in Rice.
• MOU with NDDB for mustard hybrid DMH-1 (in process).
• Entered into licensing agreement with  MAHYCO Monsanto India Ltd for production &    marketing of  BG-II JK cotton hybrids.

 International Research Collaborations :

• Founder Member of ICRISAT’s Hybrid Parent Research Consortium.
• Founder Member of IRRI’s  Hybrid Rice Development Consortium. 
• Collaboration with ICRISAT on HOPE and Heat Tolerance in Pearl Millet.
• MOU with Seed Vision, Australia for collaboration on sunflower breeding.
• Collaboration with STRASA project of IRRI for stress tolerance in rice.
• Collaboration with NCSRC, Thailand for maize breeding.

  
International Business : 

Conclusion :

It is in niche hybrid seed business with very strong R&D team. Now business of company has grown up and crossed the break even point few years back. In next two years it will be debt free company with Rs.100 + EPS. JK group brand name is an advantage for it to establish its seed brands in India and abroad. It is trading at very low PE as compared to its peers like Advanta or Monsanto. High EPS n very low equity base 36,03,906 shares and only 10% with general public. Modi' Government is betting big to boost agriculture output. Investors can buy it at CMP 450 or before June 2015 and hold for long term to get multiple gain. Slowly but surely it is another Advanta in making.