Accumulate Bayer Cropscience; target of Rs 5630: Prabhudas Lilladher

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Prabhudas Lilladher's research report on Bayer Cropscience

We broadly keep our estimates unchanged for FY23/24/25E. Bayer Crop Science (BYRCS) reported decent set of numbers in 3QFY23, with revenue up 5% YoY equally split between crop protection (CP) and seeds segment. Growth was largely driven by better performance from Maize hybrid seeds and herbicides (Glyphosate) supported by double digit liquidation growth in CP portfolio. We believe strong growth in Maize hybrid seeds was primarily on the back of better crop acreages in rabi season (up 16% YoY as on 3rd February’23) supported by remunerative maize prices (up 19% YoY to Rs2,240/quintal as on January’23). Better product mix has in-turn resulted into 330bps sequential improvement in gross margins, despite an inflationary RM cost scenario (EBITDA margins up 150bps YoY to 8.2%). In 3QFY22 BYRCS reported exceptional gains of Rs1bn towards sale of environmental science business as against gains of Rs585mn (towards sale of part of Company’s seeds distribution business to Crystal crop protection). Adjusting to that, revenue growth would have been 6.7% in 3QFY23 and 11.8% for 9MFY23.

Outlook

Maintain ‘Accumulate’ rating on the stock with unchanged TP of Rs5,630 based on 30xSeptember24 EPS.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Bayer Cropscience - 08 -02 - 2023 - prabhu