Angel Securities has recommended neutral rating on Bayer Cropscience , in its June 02, 2010 research report.
"Bayer CropScience (BCS) reported disappointing set of results for 4QFY2010. Total Sales for the quarter de-grew by 5.6% yoy to Rs 230 crore, while at the PAT level it posted a Loss of Rs 3 crore. The major surprise was the 260bp yoy decline in EBITDA Margins. For the full year FY2010, Total Revenues grew 16.3% to Rs 1724 crore, while EBITDA Margin increased by 150bp to 12.6%. Reported PAT registered 34.8% yoy growth of Rs 127 crore. However, excluding the one-time Exceptional item (factory demolition charges and VRS), Adj PAT increased 35% to Rs 136 crore. Going ahead, we expect the company to be on strong growth trajectory on account of the high agro-commodity prices. We have revised our EPS estimates upwards to factor in likely better performance in FY2011E and FY2012E. On the bourses, due to the recent run up in price the stock is trading at fair valuations owing to which we recommend Neutral on the stock," says June 02, 2010 research report.
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