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Bayer CropScience Ltd. Stock Analysis

Large Cap
Evaluated by 2424 users | BSE: 506285 | NSE: BAYERCROP |
Pesticides & Agrochemicals

Bayer CropScience is the flagship company of the Bayer Group in India and is publicly listed on the Bombay Stock Exchange. It is engaged in manufacturing of crop protection products, non agricultural pest-control, seeds and plant biotechnology. The company...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Bayer CropScience Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 19.34%23.13%25.33%16.17%20.57%16.76%15.34%16.25%17.39%23.72%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,1372,2722,7253,2453,7232,7692,8032,7103,1673,609
Y-o-Y Gr. Rt.-6.3%19.9%19.1%14.7%-25.6%1.2%-3.3%16.9%14%
Adjusted EPS (Rs.) 34.1545.7986.6980.2105.1689.883.1888.4799.65124.89
Y-o-Y Gr. Rt.-34.1%89.3%-7.5%31.1%-14.6%-7.4%6.4%12.6%25.3%
Book Value per Share (Rs.) 170.38200.68488.94476.04555.44519.6580.99518.45649.8572.94
Adjusted Net Profit 135181342294385317294304342561
Net Op. Cash Flow (Rs. Cr.) 122107138282200207157121433666
Debt to Cash Flow from Ops 0.89000000000
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Bayer CropScience Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 6%-0.6%8.8%14%
Adjusted EPS 15.5%3.5%14.5%25.3%
Book Value per Share 14.40.6-0.5-11.8
Share Price 23% 8.6% 9% 43%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 21.8824.6825.1415.9920.416.415.115.8417.0323.33
Operating Profit Margin (%) 10.3911.3313.412.713.8515.8314.915.315.4420.17
Net Profit Margin (%) 6.317.9612.569.0510.3411.4710.4911.2110.815.55
Debt to Equity 0.16000000000
Working Capital Days 232308272244238326357439411389
Cash Conversion Cycle 496364636510111013110181
Entity Percentage Holding
Promoters 71.43%
Institutions 15.42%
Non-Institutions 13.15%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Bayer CropScience Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Bayer CropScience Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Bayer CropScience Ltd.'s performance infers:

Bayer CropScience Ltd. earnings have grown by 3.5%, whereas share price has appreciated 8.6% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Bayer CropScience Ltd. share prices over the last 10 years. Here is what we found out:

Bayer CropScience Ltd. share price has appreciated 18.9% annually over the past ten years.

Bayer CropScience is the flagship company of the Bayer Group in India and is publicly listed on the Bombay Stock Exchange. It is engaged in manufacturing of crop protection products, non agricultural pest-control, seeds and plant biotechnology. The company enjoys a unique position in the market because of its capability to offer new innovative products, technologies, processes, services and business models. With its innovative products, it is contributing to

Bayer CropScience is the flagship company of the Bayer Group in India and is publicly listed on the Bombay Stock Exchange. It is engaged in manufacturing of crop protection products, non agricultural pest-control, seeds and plant biotechnology. The company enjoys a unique position in the market because of its capability to offer new innovative products, technologies, processes, services and business models. With its innovative products, it is contributing to finding solutions to some of the major challenges of its time. The company remains committed to improving lives by advancing nutrition and healthcare solutions for the country’s growing population.

Business area of the company

The company’s Crop Science division is the largest for Bayer in India with businesses in seeds & traits, crop protection, digital farming and environmental science (non-agricultural pest control). Its robust crop protection portfolio includes products to manage insects, pests, weeds and diseases. It also includes bilogical solutions, that use nature’s own defenses to protect crops. Its broad range of high-quality hybrid seeds includes cutting-edge traits for high-yielding crops with improved weed management and superior insect control. Its expertise and innovations in digital farming provide farmers with a deeper understanding of their fields so they can utilize their inputs and natural resources as efficiently as possible. The company also has products that focus on non-agricultural applications in the form of products and services for vector control and professional pest control.

The company’s Pharmaceuticals division in India operates as Bayer Zydus Pharma, a joint venture between Bayer and Zydus Cadila. The focus of this business is on prescription products, especially for cardiology and women’s health care and on specialty therapeutics in the areas of oncology, hematology and ophthalmology. The division also comprises the radiology business, which markets diagnostic imaging equipment together with the necessary contrast agents. Its Consumer Health division is focused on making self-care for a better life a reality for billions of people around the world through everyday healthcare. Its Animal Health business develops and markets products and solutions for the prevention and treatment of diseases in companion and farm animals.

Awards:

  • Bayer India wins ‘Aon Best Employer in India 2017’ award.
  • Bayer India wins ‘Aon Best Employer in India 2018’ award.
  • Bayer India wins the Mercer NDTV Employer Excellence Award 2018.
  • Bayer India wins ‘Aon Best Employer in India 2019’ award for the third time in a row.
  • Bayer received a 'Great Places to Work' certification.

Milestones:

  • 1863: The company is founded on August 1, 1863 by dye salesman Friedrich Bayer and the master dyer Johann Friedrich Weskott in Wuppertal, Germany - a 19th century startup with tremendous potential.
  • 1896: First wholly-owned subsidiary of Bayer in Asia ‘Farbenfabriken Bayer and Company Limited’ is set-up in Mumbai.
  • 1958: Bayer CropScience Ltd. – the listed entity for Bayer in India - was incorporated on September 9, 1958.
  • 1958: Bayer establishes Bayer Agrochem Private Limited in India.
  • 1963: The name of Bayer Agrochem changes to Bayer (India) Limited.
  • 1969: The company commences operations of a major plant in Thane.
  • 2001: Bayer acquires Aventis CropScience.
  • 2004: First Imidacloprid production facility outside Germany is inaugurated in Vapi.
  • 2005: Lanxess AG is spun off from the Bayer Group.
  • 2006: Takeover of Schering AG, Berlin, Germany.
  • 2011: Bayer Zydus Pharma is set up as a 50:50 joint venture between Bayer HealthCare and Zydus Cadilla.
  • 2013: The Seeds business unit (Bayer BioScience) of Bayer CropScience, India opens a multi-crop breeding station in Chandippa, near Hyderabad and a Mustard Breeding Station in Palwal, Haryana.
  • 2014: New Headquarters of Bayer South Asia inaugurated at Thane.
  • 2015: Bayer MaterialScience is now independent under the name Covestro.
  • 2016: In September, Bayer and Monsanto sign a binding merger agreement.
  • 2017: Bayer kicks off ‘LEAPS‘ globally as a new approach to complement the existing R&D capabilities and which aims to enable breakthrough innovations across healthcare and agriculture.
  • 2018: Bayer concludes process to sell Covestro.
  • 2019: Bayer completes Monsanto integration in India in September.
  • 2019: A new plant is inaugurated at Bayer‘s Himatnagar site, strengthening company’s manufacturing footprint in Gujarat.
  • 2020: FOGSI and Bayer Zydus Pharma collaborate to drive adoption of digital technology solution ‘Ask Tanu’.
  • 2020: Bayer’s Aflibercept injection (EyleaTM) for intravitreal use receives DCGI Approval for Diabetic Macular Edema Indication.
  • 2020: Bayer partners with ITC e-Choupal 4.0 to support farmers.
  • 2020: Bayer and Curadev sign research collaboration and license agreement to develop novel STING antagonists across indications.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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