(Reuters) -Agricultural chemicals maker Bayer CropScience posted a 9.6% rise in first-quarter profit on Wednesday, backed by strong demand for its herbicide ‘Roundup’ and corn seeds.
The Indian unit of German drugs and pesticides maker Bayer AG posted a profit of 2.79 million rupees ($31,834.8) for the three months ended June 30, compared with 2.54 billion rupees a year earlier.
Revenue from operations grew 17.4% to 19.15 billion rupees.
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KEY CONTEXT
India’s agrochemical companies, both domestic-focused and export-oriented, are expected to report healthy volume growth on the forecast of a normal monsoon, analysts said.
The company said its growth in earnings is primarily driven by higher sales volume of corn seeds and its herbicide ‘Roundup’, supported by the early onset of monsoon.
PEER COMPARISON
Valuation (next 12 Estimates (next 12 Analysts’ sentiment
months) months)
RIC PE EV/EBITDA Revenue Profit Mean No. of Stock to Div
growth (%) growth (%) rating* analyst price yield
s target** (%)
Bayer Cropscience 35.25 26.23 10.01 25.04 Hold 8 1.07 2.00
Coromandel 30.29 19.75 13.01 29.42 Buy 10 0.97 0.47
International
UPL 18.64 7.94 7.49 71.07 Buy 18 0.98 0.84
Rallis India 32.93 17.40 13.47 47.42 Sell 13 1.32 0.66
* Mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
APRIL-JUNE STOCK PERFORMANCE
— All data from LSEG
— $1 = 87.6400 rupees
(Reporting by Yagnoseni Das in Bengaluru; Editing by Ronojoy Mazumdar and Harikrishnan Nair)
