See a price target of 925-950 for Bayer Corp.: Gaurang Shah

Gaurang Shah, Asst VP, Geojit BNP Paribas Financial Services in a chat with ET Now gives his perspective on Bayer Corp.

Why do you like Bayer Corp. and do you think this is really more of a core portfolio hold which basically you go or is it more of a cyclical hold that you hold with the cycle?

Companies like Bayer Corps. and Pfizer, GlaxoSmithKline are some of the stock ideas which really don’t hamper your investment as far as the downside is concerned, whenever you have these kind of wild volatile movements both on the up and the downside.

Yes they are into agrochemical business, they are into crop protection and also given the fact that it’s a cash rich company so as far as their capex goes I don’t think they need to look out for any kind of outsourcing of funding.

Its 71% subsidiary of Bayer AG Germany and of course given the kind of moves that we have seen in the recent past as far as Bayer Corps sciences were concerned and of course the market share and the product profile going forward I am given to understand that in a quarter or two you will have many more products coming in from Bayer Corp. as far as agro chemical business is concerned or a speciality products are concerned so from that point margins are also quite decent over there.

They enjoy reasonable decent margin and numbers were quite excellent as far as what we have seen till now so we feel that from a current market price 770 or 750 thereabouts that I saw last time you could see a price target of something close to 925 to 950. Again all these stocks that I am speaking about this morning are with one year plus time horizon.