⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
BASF - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.8
| Stock Code | BASF | Market Cap | 14,853 Cr. | Current Price | 3,418 ₹ | High / Low | 5,424 ₹ |
| Stock P/E | 38.4 | Book Value | 881 ₹ | Dividend Yield | 0.58 % | ROCE | 18.0 % |
| ROE | 13.7 % | Face Value | 10.0 ₹ | DMA 50 | 3,637 ₹ | DMA 200 | 4,187 ₹ |
| Chg in FII Hold | -0.01 % | Chg in DII Hold | -0.01 % | PAT Qtr | 105 Cr. | PAT Prev Qtr | 101 Cr. |
| RSI | 41.0 | MACD | -64.0 | Volume | 28,872 | Avg Vol 1Wk | 23,806 |
| Low price | 2,907 ₹ | High price | 5,424 ₹ | PEG Ratio | -5.76 | Debt to equity | 0.04 |
| 52w Index | 20.3 % | Qtr Profit Var | 0.12 % | EPS | 92.5 ₹ | Industry PE | 25.7 |
📊 Financial Overview
- Revenue & Profitability: PAT stable (105 Cr. vs 101 Cr.), showing minimal growth (+0.12%).
- Margins & Returns: ROCE (18.0%) and ROE (13.7%) are decent but not industry-leading.
- Debt: Debt-to-equity ratio at 0.04, indicating very low leverage.
- Cash Flow: EPS at 92.5 ₹, consistent but modest relative to valuation.
💹 Valuation Metrics
- P/E Ratio: 38.4 vs Industry PE of 25.7 → Overvalued.
- P/B Ratio: Current Price ₹3,418 vs Book Value ₹881 → Stretched valuation.
- PEG Ratio: -5.76 → Negative, reflecting weak growth prospects.
- Intrinsic Value: Current price above fair value zone, limited upside.
🏢 Business Model & Competitive Advantage
- Strong presence in chemicals and diversified industrial products.
- Debt-free structure provides financial resilience.
- However, profitability growth remains stagnant, limiting competitive strength.
📈 Entry Zone Recommendation
- Technicals: RSI at 41.0 (near oversold), MACD negative, price below 50DMA & 200DMA.
- Suggested entry zone: ₹2,900–₹3,100 if correction occurs.
- Long-term holding viable only if earnings growth improves and valuations normalize.
✅ Positive
- Debt-free balance sheet with minimal leverage.
- Stable EPS (92.5 ₹).
- Strong industry presence in chemicals.
⚠️ Limitation
- Quarterly profit growth stagnant (+0.12%).
- High P/E ratio compared to industry peers.
- PEG ratio negative, signaling poor growth outlook.
📉 Company Negative News
- FII holding reduced (-0.01%).
- DII holding reduced (-0.01%).
📈 Company Positive News
- Stable quarterly profits despite industry challenges.
- Debt-free structure supports financial stability.
🏭 Industry
- Industry PE at 25.7, lower than company’s 38.4.
- Chemicals sector stable but company trades at premium valuations.
🔎 Conclusion
- BASF India shows financial stability with a debt-free balance sheet but faces stagnant profitability.
- Valuation is stretched compared to industry peers, limiting near-term upside.
- Best strategy: Wait for correction towards ₹2,900–₹3,100 before entry.
- Long-term holding viable only if earnings growth resumes and valuation normalizes.