Mehabe score: 7 G Factor: 5 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 6.
Description
Bayer CropScience is engaged in Agri Care business which primarily includes manufacture, sale and distribution of insecticides, fungicides, herbicide and various other agrochemical products and corn seeds.#
Stock trades at 5916.0, above its 50dma 5516.24. It also trades above its 200dma 5345.57. The stock remains bullish on techicals
The 52 week high is at 6601.25 and the 52week low is at 4921.70
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– has been maintaining a healthy dividend payout of 48.90%
Weakness
– Stock is trading at 10.43 times its book value
Competition
– The industry trades at a mean P/E of 42.3x. Bayer Crop Sci. trades at the industry’s max P/E of 54.71x. BAYERCROP trades at a P/E of 54.7x
– Industry’s mean G-Factor is 5.0 while the mean Piotski score is 6.0. BAYERCROP has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 3.6%. The max 1- month return was given by Bayer Crop Sci.: a return of 3.61 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 734.0 cr compared to Rs 459.0 cr for period ended Mar 2020, a rise of 59.9%
Operating Profits reported at Rs 83.0 cr for period ended Mar 2021 vis-vis 58.0 for period ended Mar 2020 .
Operating Margins contracted -132.8 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 13.77 compared to Rs -10.04 for previous quarter ended Dec 2020 and Rs 7.01 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 4261.0 cr for period ended Mar 2021 vis-vis sales of Rs 3609.0 cr for the period ended Mar 2020, a healthy growth of 15.3%. The 3 year sales cagr stood at 16.3%.
Operating margins shrank to 19.0% for period ended Mar 2021 vis-vis 20.0% for period ended Mar 2020, contraction of 100.0 bps.
Net Profit reported at Rs 493.0 cr for period ended Mar 2021 vis-vis sales of Rs 474.0 cr for the period ended Mar 2020, rising 3.9%.
Company recorded a healthy Net Profit CAGR of 18.0% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 687.0 cr for period ended Mar 2021 vis-vis Rs 666.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 19.0% compared to 20.0% over the last 3 Years. – The stock has given a return of 6% on a 1 Year basis vis-vis a return of 10% over the last 3 Years. – The compounded sales growth on a TTM bassis is 18% vis-vis a compounded sales growth of 16% over the last 3 Years. – The compounded profit growth on a TTM basis is -15% vis-vis a compounded profit growth of 17% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 2.97% vis-vis 2.87% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 14.26% vis-vis 13.21% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free.
– has been maintaining a healthy dividend payout of 48.90% – Stock is trading at 10.43 times its book value
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 5516.24 and is trading at 5916.0, thus bullish price action wise.
