Karuturi Global - A Report.

>> Thursday, June 19, 2008

Incorporated in 1994-95, Karuturi Global Limited is engaged in three businesses: floriculture, processing foods
– gherkins, and information technology. The company was initially set up as Karuturi Floritech in
Doddaballapur, near Bangalore with an annual capacity to process 12 million premium cut roses at its state-ofthe-
art facilities.
Promoted by Ramakrishna Karuturi, the company has set up a wholly owned subsidiary in Ethiopia, Africa
Ethiopian Meadows Plc - to produce roses with a special focus on HT roses. And today with the combined production capacities of India and Ethiopia, Karuturi ranks amongst one the largest cut rose producers in the world with a strong global presence.
In addition to cut roses, the company also supplies cut rose products such as rose plants, coco peat and coco cups to customers across over 15 countries including Holland, Germany, United Kingdom, Italy, Singapore,
Taiwan, Bahrain, Muscat, Dubai, Australia, Japan, New Zealand, Brunei and across North America.

Having consolidated its presence in floriculture, Karuturi has now expanded into the fast growing agro-based and food processing business sector to export bulk and bottled gherkins to international processed food firms and super markets in major consuming nations such as the US, Europe and Russia, which are also the company's key rose markets.
Information technology

The Company has also diversified into IT and network solutions under which it provides bandwidth to multinational companies and also develops software for the auction portal in its floriculture business.
Rosebazaar.com
The synergy between its two business divisions – floriculture and IT - is apparent in www.rosebazaar.com , its Portal website for floriculture which is conceptualised, designed, developed and hosted by the combined efforts of the two divisions.

Investment Highlights

  • _ Largest player in cut flower business
  • _ Rising Income in India which is leading to a change in consumer behaviour
  • _ Domestic demand growing at the rate of 40 per cent per annum, significantly higher than the
  • global average.
  • _ Global supply-demand mismatch puts the industry in a strong position
  • _ Indian Floriculture Industry still nascent – Huge opportunities for Karuturi
It is trading at a very low price and can be termed as a free price.
At CMP of 24 one can start accumulating it around this price. With an PE of 65 and EPS of 0.37 the stock seems attractive.
One start accumilating this stock around this levels for target of Rs 50 in medium to long term.
Happy Investing.

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