February 20, 2017 / 04:21 PM IST
Bayer’s management expects CY17 to be a challenging year due to lower reservoir levels, high channel inventories and poor farmer liquidity; however, firm commodity prices and one goodagri-seasonare sufficient to address these issues.
Outlook
A possible buyback over next 18 months could be a trigger. However, current valuation at 30x FY18E EPS is rich given FY16-18E EPS CAGR at 28% and RoE of 20%. Maintain HOLD.
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