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Sometimes the small fish, which are hardest to find, are the sweetest! In the final instalment of our series on capitalising on India’s growth, we turn our attention to a market segment rich in opportunity — small and mid-cap companies. This segment not only offers some of the highest growth potential but also presents attractive entry points from a valuation perspective, driven by information asymmetry and pricing inefficiencies. These factors make small and mid-caps particularly compelling for insightful and experienced locally based (in India) asset managers, who are well-positioned to uncover value where broader those focused on broader investment universes (Global, Emerging Markets, Asia) may overlook it or be obsessed with the need for liquidity. Click Here To Read The Complete Article

India’s agriculture sector has been a cornerstone of its economic growth, and the recent Union Budget has reaffirmed the government’s commitment to its development. With an increased focus on seed technology and sustainable farming, companies like Kaveri Seeds Company Limited (KSCL) are well-positioned to benefit from these tailwinds. Established in 1976, as one of India’s largest seed producers, Kaveri Seeds has demonstrated strong growth, particularly in key crops like maize and rice. The company’s recent financial performance further solidifies its position as a market leader. Kaveri Seeds has a market cap of NZ$1.3bn and has risen 93% in local currency terms over the last months (to 31st March 2025). The company has a strong R&D base, focusing on developing high-yield seeds and are a trusted partner for farmers seeking to enhance farm productivity. Strong Financial Growth Despite Challenges Kaveri Seeds has reported impressive numbers for Q3 and the first nine months (9M) of FY25. The company’s net sales for Q3 FY25 stood at NZ$31.7 million, reflecting a 30.6% increase compared to Q3 FY24. Meanwhile, its EBITDA grew by 12.8%, and PAT (profit after tax) rose by 29%. Despite global supply chain disruptions and political unrest in export markets like Bangladesh, the company managed to maintain profitability and expand its domestic presence. The company’s 9M FY25 financial performance was equally robust, with net sales reaching NZ$214 million, a 6.4% rise from the previous year. EBITDA and PAT growth were steady at 1.1% and 1.5%, respectively. Notably, the company maintains strong liquidity, with cash on books standing at over NZ$100 million1. Crop Performance and Market Expansion Kaveri Seeds has witnessed strong growth across several crop segments. The hybrid rice segment saw a 14% volume increase, driving a 27% revenue growth, while selection rice volumes (specific category of rice seeds that are carefully chosen for their quality, yield potential, and adaptability to various growing conditions) surged by 18%, contributing to a 34% jump in revenue. Similarly, maize volumes rose by 8%, leading to a 25% revenue boost. The company’s vegetable seed sales also experienced modest growth, with volumes up 2% and revenue increasing by 3%. However, the cotton hybrid segment faced headwinds, with volumes declining by 47% and revenues dropping by 40%. This decline is partly attributed to a reduction in cotton acreage and shifting farmer preferences. In contrast, non-cotton hybrids (created by crossbreeding two genetically distinct parent plants to produce offspring with desirable traits, such as higher yield, disease resistance, or adaptability to specific environmental conditions) recorded a 23% increase in volumes and a 31% jump in revenue, compensating for the dip in cotton seed sales. Source: Kaveri Seed, Investor Presentation *a lakh is a unit of measurement which is 100,000, in India India’s Budget and Policy Support for Agriculture The Indian government’s latest budget has allocated substantial funds towards agricultural modernisation, with a specific emphasis on high-yield seeds and hybrid technologies. The initiatives align well with Kaveri Seeds’ expertise, creating significant growth opportunities for the company. Key budgetary allocations and policies supporting the seed industry include: Increased Investment in Agri R&D: The government’s push for research-driven agriculture will likely lead to higher adoption of hybrid and genetically advanced seeds. Subsidies for Quality Seeds: Farmers will benefit from improved access to high-quality seeds, leading to increased demand for Kaveri Seeds’ products. Expansion of Irrigation and Crop Insurance Schemes: These measures ensure stable production, thereby encouraging farmers to adopt premium seed varieties. Focus on Export Growth: With efforts to enhance Agri-exports, companies like Kaveri Seeds stand to gain once global trade stabilizes. Outlook and Growth Drivers With strong financial fundamentals and policy tailwinds, Kaveri Seeds is poised for sustained growth. The company’s continued innovation in hybrid seed development, strategic expansion in non-cotton crops, and resilience in export markets position it favourably in the agricultural sector. As India moves towards a more technologically advanced and sustainable agricultural landscape, Kaveri Seeds’ commitment to research, farmer engagement, and product innovation will likely drive its next phase of growth. For investors looking at the agriculture sector, Kaveri Seeds is a unique and differentiated story, backed by robust financials, with a supportive policy environment. The company features in the top 20 holdings in the India Avenue Equity Fund. Disclaimer A copy of the PDS for the India Avenue Equity Fund (H Class) can be obtained by writing to India Avenue on IA@indiaavenue.com.au or by visiting http://www.indiaavenue.com.au. Equity Trustees Limited is the Responsible Entity (ABN 46 004 031 298, AFSL 240975) for the India Avenue Equity Fund (H Class). This Note (‘Note’) has been produced by India Avenue Investment Management Limited (‘IAIM’) ABN 38 604 095 954, AFSL 478233 and has been prepared for informational and discussion purposes only. This does not constitute an offer to sell or a solicitation of an offer to purchase any security or financial product or service. Any such offer or solicitation shall be made only pursuant to a Product Disclosure Statement, Information Memorandum, or other offer document (collectively ‘Offer Document’) relating to an IAIM financial product or service. This Note does not constitute a part of any Offer Document issued by IAIM. The information contained in this Note may not be reproduced, used, or disclosed, in whole or in part, without prior written consent of IAIM. Past performance is not necessarily indicative of future results and no person guarantees the performance of any IAIM financial product or service or the amount or timing of any return from it. There can be no assurance that an IAIM financial product or service will achieve any targeted returns, that asset allocations will be met or that an IAIM financial product or service will be able to implement its investment strategy and investment approach or achieve its investment objective. Statements contained in this Note that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of IAIM. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. Additionally, this Note may contain "forward-looking

Date: 7th Sept 2016 | Publication: Financial Review, The Sydney Morning Herald and The Age A new investment fund targeting Indian equities which counts Allan Moss, Nick Greiner and Brisbane’s Keystone Private as backers is aiming to put some distance between India and the emerging markets basket. Mugunthan Siva, who is the chief investment officer and managing director of India Avenue Investment Management is hoping his new unlisted fund will be the basis of a $300 million to $500 million investment manager specialising in one of the world’s fastest growing economies. Keystone has put equity into India Avenue as well as co-investing in the fund. Click Here To Read The Complete Article

Date: 9th Nov 2016 | Publication: Financial Review Australia has a low rate of investment into modern India, yet global investors from Europe, the UK and the US don’t share our scepticism. What is making India more compelling to other developed market investors? Click here to read the complete article

Date: 23th Nov 2016 | Publication: Money Management Australia has a low rate of investment into modern India, yet global investors from Europe, the UK and the US don’t share our scepticism. What is making India more compelling to other developed market investors? Click Here To Read The Complete Article

Date: 23th Jan 2017 | Publication: Financial Standard India Avenue Investment Management’s India Avenue Equity Fund, which launched in September 2016, is domiciled in Sydney and benefits from research expertise both locally and in Mumbai. It’s benchmarked against the MSCI India Index, which it has outperformed by 1.69% since inception. Click Here To Read The Complete Article

Date: 6th Feb 2017 | Publication: Financial Standard The prospect of increased foreign investment places India in a strong position to profit from economic reforms expected throughout 2017, according to an Indian investment specialist. Specialist India-focused investment house India Avenue Investment Management says that despite initial teething problems, India’s economy is adjusting well to demonetisation ahead of the introduction of the GST slated for later this year. Click Here To Read The Complete Article

Date: 7th Feb 2017 | Publication: Investor Daily India is set to benefit from a number of economic reforms undertaken by the government despite several “teething problems”, according to boutique asset manager India Avenue. Click Here To Read The Complete Article