In a chat with ET Now, Deven Choksey, Managing Director, KR Choksey Investment Managers, shares his opinions and views on stocks of companies that are into seeds business.

Deven Choksey said "One of the most important learning that we have in particularly in seeds business is that you can’t probably bet against the nature. The important aspect is, when you look at the valuations. At one point of time, valuations reached to such a high level that there was no secondary for this kind of a company in the market."

"So obviously that is the act to pay the price for such exuberance on the valuation side. To my mind, one will have to look at this particular business very systematically. There are multiple crops, which this particularly seed companies cater to; there are multiple geographies which these companies cater to. Obviously you might see larger amount of problems, if your reliance is more on a particular geography, in a given situation like this. I feel that within the basket of the seed stocks Advanta looks relatively safer, given the kind of geographical presence that the company has, not only in India, but also in other continents." He Said.

He added "It could beat the situation like drought or failure of crops of a particular geography. It could definitely meet those kinds of challenges far better. One needs to focus on buying such companies which have systematic business model that mitigates the risk element in the business. Valuation-wise, Kaveri has already come down and given the bad news the stock is also available at a discounted price. Well we do not have coverage on the company. So, we would refrain from giving recommendations on the stock."