Large Cap Chemical Stock Declares Massive Interim Dividend of Rs. 105: Buy?

During Friday's closing session, Bayer CropScience Ltd., a large-cap chemical firm, reached a market cap of Rs 23,414.16 Cr. With a worldwide history spanning over 150 years and key expertise in healthcare and agriculture, Bayer is a life science corporation. India is home to all three of Bayer Global's business divisions: Consumer Health, Pharmaceuticals, and Crop Science. The Bayer Group's major company in India is Bayer CropScience Limited, which is openly traded on the Bombay Stock Exchange (BSE: 506285). Following the announcement of a hefty interim dividend of Rs. 105 by the company, together with positive quarterly results, Bayer CropScience's shares wrapped up 6.25% higher on the BSE on Friday.

Bayer CropScience Dividend

The Board of Directors at their meeting held on November 03, 2023, "Declared an Interim Dividend of Rs. 105/-per equity share of Rs. 10/-each for the Financial Year 2023-24. The said Interim Dividend will be paid electronically through Bank transfer on Thursday, November 30, 2023, to those shareholders whose names appear in the Register of Members of the Company as on the Record date i.e., Saturday, November 11, 2023. In case of shareholders who have not registered their bank mandate with the Company, the physical dividend warrant/ cheques will be dispatched to their registered addresses," said Bayer CropScience in a stock exchange filing.

Bayer CropScience Q2 Results

For the September 2023 quarter, Bayer CropScience Ltd. reported a 37% rise in net income, totalling Rs 222.9 crore. The firm declared a profit of Rs 162.6 crore for the same period in the previous year. Compared to the same period last year, when revenue from operations was Rs 1451.9 crore, it increased by 11.38 per cent to Rs 1617.2 crore in Q2FY24.

During the July-September quarter of the 2023-24 fiscal year, total income climbed to Rs 1,633.3 crore from Rs 1,465.7 crore during the same period the previous year. Bayer declared a profit of Rs 551.4 crore for the first half of the current fiscal year, 18% more than the Rs 465.2 crore earned during the same period last year. Its revenue, which was Rs 3393.6 crore in H1FY23, jumped by around 8% to Rs 3147.3 crore in H1FY23.

Commenting on Q2 results, Simon Wiebusch, Vice Chairman & Managing Director and CEO, BCSL said, "In a difficult environment of delayed, deficient and erratic monsoons as well as elevated COGS, we delivered strong growth of 11% in revenue from operations in Q2 of FY2023-24. Strong volume growth in Roundup^TM on the back of good availability and market demand mitigated significantly lower prices. DeKalb^TM corn seed sales, driven by favorable acreages and commodity prices, along with strong product liquidation of our crop protection portfolio remain our key growth drivers with LAUDIS®, NATIVO® and COUNCIL® activ performing especially well."

Commenting on the half-yearly results, Simon Britsch, Chief Financial Officer, BCSL said, "A strong operating expense steering and sustained focus on maintaining optimal channel inventory, combined with consistent portfolio performance, especially in corn seeds and crop protection, have yielded us a Profit Before Tax growth of 16%. We will continue with sustained growth investments of which digitalization is a key pillar. Our drone spray service under this umbrella spans 6 states in the country currently."

Bayer CropScience Share Price Target

KKunal V Parar, Vice President - Technical and Algo at Choice Broking said, "The stock, as observed on a daily chart, has displayed several bullish indicators. Firstly, it has found support at its 100 Days Moving Average, suggesting an overall upward trend. Additionally, the stock has been consistently following an Upward Rising Trend line, reinforcing the expectation of upward momentum."

"Furthermore, the stock has successfully held its ground at a previous peak, now acting as a robust support level. This reinforces the stock's positive outlook. Examining the daily momentum indicator, the Relative Strength Index (RSI) is currently reading at 53.90, comfortably above the 50-mark. This indicates a positive sentiment in the stock," the analyst added.

"Considering the technical factors mentioned above, we anticipate a potential upward movement in the stock, with a target range between 5550 and 6490. It's important to note that there is solid support at 4800 on the downside, providing a safety net for potential price corrections," KKunal V Parar further stated.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.