Kotak Institutional Equities retains sell on Bayer Cropscience, target price raised to Rs 3,000

Kotak Institutional Equities has retained sell rating on Bayer Cropscience in the long term with target price revised up to Rs 3,000 from Rs 2,700. Shares of Bayer Cropscience ended up 1.3% at Rs 4498.45 on Thursday while the BSE Sensex closed 163.37 points up (+0.40%) at 41,306.03.

Company Financials

For the quarter ended 31-12-2019, the company has reported a Standalone sales of Rs 854.00 Crore, down -36.57 % from last quarter Sales of Rs 1346.30 Crore and up 37.52 % from last year same quarter Sales of Rs 621.00 Crore Company has reported net profit after tax of Rs 137.90 Crore in latest quarter.


The company’s top management includes Dr.Thomas Hoffmann, Mr.Duraiswami Narain, Mr.Pankaj Patel, Mr.Rolf Hoffmann, Mr.Sekhar Natarajan, Ms.Jens Hartmann, Ms.Ketaki Bhagwati. Company has Deloitte Haskins & Sells LLP as its auditors, As on 31-12-2019, the company has a total of 44,942,092 shares outstanding.

Investment Rationale

Bayer’s Q3 results were well above estimates led by modestly higher growth in revenues and a sharp jump in margins, said Kotak Institutional. In nine months of FY20, like-for-like Ebitda and profit before tax including Monsanto, increased by modest 5-7%, it said. Expensive valuations at 37 times FY21 estimated EPS reflect a heightened growth expectation, said Kotak.