Despite uncertain market conditions, Bayer Cropscience looks like a promising buy, even on fundamentals. It is one of the largest players in the seeds and pesticides business, with a strong parentage, being a subsidiary of Bayer AG of Germany. With increased focus expected on agriculture in the budget, this could be one of the beneficiaries. Again it has a huge land bank in Kolshet near Thane, which is lying vacant because of plant relocation. It is estimated that the sale of this land could be worth around Rs.400 to 500 per share. Also the parent company has got a large majority stake and could look at delisting which would provide an attractive open offer to investors.
Technically as indicated in the charts, it has broken out of a rectangular consolidation around 585 and is supported by strong volume action. Other indicators like Moving averages, RSI, Stochastics and MACD are all showing positive crossovers.
This stock could warrant a long term hold for investors portfolio.
Target : 665
Stop Loss : 575
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