Bayer Crop Sci. (BAYERCROP)

FairStock Score: 55/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 1/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett-Graham investor, I ask whether Bayer Crop Sci. is a wonderful business at a fair price. The numbers show a high-quality agrochemical franchise: ROE 23.52%, ROCE 24.80%, debt/equity just 0.03, promoter holding 71.44%, and Piotroski F-Score 8/9. It earns well, and Altman Z-Score 4.54 suggests a safe balance sheet. Dividend yield 3.71% adds a cash return, though FCF is only ₹22 Cr—tiny against ₹18,183 Cr market cap and ₹96 Cr latest-quarter net profit, so I want to know why earnings are not converting into cash. The latest quarter implies a net margin of about 8.7%, healthy, but weak FCF makes me question profit quality. Growth is mixed: latest quarter sales ₹1,106 Cr, net profit ₹96 Cr, and profit growth 15.40%, but sales growth is -4.20% and 5-yr revenue CAGR is 5.90%. That is not a fast grower; more a stalwart. Valuation is the rub. At ₹4045.80, P/E 24.81 seems moderate, and DCF intrinsic value ₹4140.60 says roughly fair. But P/B 6.13 means I pay ₹6.13 for each ₹1 of book. Graham Number ₹1459.69 and margin of safety -220.09% mean Graham would not call it cheap; the price is far above his asset-based comfort. EV/EBITDA -62.06 is odd and worth investigating. The 52-week range ₹3366.10–₹5149.90 shows volatility. This is a steady, high-return, low-debt business, but the price already reflects much of that quality. I would monitor cash conversion, sales recovery, and whether ROE/ROCE stay above 20% before considering a margin-of-safety entry.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer