Sell Bayer CropScience: East India Securities

Bayer CropScience (BCS) registered sales of Rs 10.8Bn, a growth of 9.2% YoY and 35.2% QoQ, indicating pick up in growth. We believe post healthy monsoon, market demand is picking up. Overall performance of BCS was encouraging on back of improving monsoon condition, we believe as season picks up, 3Q & 4Q numbers should improve. 

We expect BCS to post CAGR of 16% in Revenue & 17% growth in PAT over FY16 18E. At current valuation of 43x & 37x FY17 & FY18 expected earnings, we believe stock is overvalued, however managements regular buy back & lower trading volume would support higher price. We maintain our Sell rating on stock with Target price of Rs 4,038.