⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
BAYERCROP - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | BAYERCROP | Market Cap | 20,218 Cr. | Current Price | 4,493 ₹ | High / Low | 6,540 ₹ |
| Stock P/E | 30.2 | Book Value | 695 ₹ | Dividend Yield | 2.79 % | ROCE | 24.8 % |
| ROE | 20.0 % | Face Value | 10.0 ₹ | DMA 50 | 4,576 ₹ | DMA 200 | 4,880 ₹ |
| Chg in FII Hold | 0.04 % | Chg in DII Hold | 0.25 % | PAT Qtr | 95.7 Cr. | PAT Prev Qtr | 153 Cr. |
| RSI | 43.2 | MACD | -30.0 | Volume | 20,178 | Avg Vol 1Wk | 28,051 |
| Low price | 4,273 ₹ | High price | 6,540 ₹ | PEG Ratio | -16.6 | Debt to equity | 0.03 |
| 52w Index | 9.72 % | Qtr Profit Var | 180 % | EPS | 149 ₹ | Industry PE | 22.2 |
📊 Financial Overview
- Revenue & Profitability: PAT declined from 153 Cr. to 95.7 Cr., showing earnings volatility despite long-term strength. EPS at 149 ₹ remains solid.
- Margins & Returns: ROCE (24.8%) and ROE (20.0%) are strong, reflecting efficient capital use.
- Debt: Debt-to-equity ratio at 0.03, virtually debt-free balance sheet ensures stability.
- Cash Flow: Dividend yield at 2.79% provides steady income support.
💹 Valuation Metrics
- P/E Ratio: 30.2 vs Industry PE of 22.2 → Slightly overvalued.
- P/B Ratio: Current Price ₹4,493 vs Book Value ₹695 → Stretched valuation.
- PEG Ratio: -16.6 → Negative, reflecting weak growth prospects.
- Intrinsic Value: Current price above fair value zone, limited upside.
🏢 Business Model & Competitive Advantage
- Strong presence in agrochemicals and crop protection with global brand support.
- High ROCE and ROE highlight operational efficiency and competitive strength.
- Debt-free structure enhances resilience and long-term sustainability.
📈 Entry Zone Recommendation
- Technicals: RSI at 43.2 (neutral), MACD negative, price below 50DMA & 200DMA.
- Suggested entry zone: ₹4,200–₹4,400 for accumulation.
- Long-term holding viable given strong fundamentals, but only if earnings stabilize.
✅ Positive
- Strong ROCE (24.8%) and ROE (20.0%).
- Debt-free balance sheet (Debt-to-equity 0.03).
- Dividend yield at 2.79% provides steady income.
- Institutional support with slight increases in FII (+0.04%) and DII (+0.25%) holdings.
⚠️ Limitation
- P/E ratio (30.2) above industry average.
- P/B ratio highly stretched.
- PEG ratio negative, signaling poor growth outlook.
- Quarterly profit decline highlights earnings volatility.
📉 Company Negative News
- Quarterly PAT declined significantly from 153 Cr. to 95.7 Cr.
- Weak technical momentum with MACD negative.
📈 Company Positive News
- Strong efficiency metrics (ROCE and ROE).
- Dividend yield supports investor confidence.
- Institutional holdings increased slightly.
🏭 Industry
- Industry PE at 22.2, lower than company’s 30.2.
- Agrochemical sector stable with long-term demand growth, but cyclical earnings patterns.
🔎 Conclusion
- Bayer CropScience shows strong efficiency and a debt-free balance sheet but faces earnings volatility.
- Valuation is stretched compared to industry peers, limiting near-term upside.
- Best strategy: Accumulate in the ₹4,200–₹4,400 zone.
- Long-term holding viable if profitability stabilizes and valuation aligns closer to industry averages.