BASF - Fundamental Analysis: Financial Health & Valuation

📈 Positive

• ROCE of 18.0% and ROE of 13.7% — indicates efficient capital deployment and profitability.
• Debt-to-equity ratio of 0.04 — reflects a conservative and stable balance sheet.
• EPS of ₹98.4 — solid earnings per share supports long-term valuation.
• Book Value of ₹845 — provides a strong asset base.
• Volume above average — suggests growing investor interest despite recent correction.

⚠️ Limitation

• High P/E ratio of 46.5 vs industry average of 32.0 — suggests overvaluation.
• Negative PEG ratio of -6.96 — implies earnings growth may not justify current price.
• Quarterly profit decline of 30.1% — signals earnings volatility.
• Technical weakness: RSI at 40.7 and MACD at -48.0 — bearish momentum.
• Trading below DMA 50 and DMA 200 — indicates a downtrend.

📉 Company Negative News

• Stock has corrected nearly 48% from its 52-week high of ₹8,509.
• FII holding declined slightly by 0.07% — reflects cautious foreign sentiment.

📢 Company Positive News

• Quarterly PAT surged to ₹147 Cr from ₹32.9 Cr — strong sequential recovery.
• Stable dividend payout with a yield of 0.45% — indicates shareholder-friendly approach.

🏭 Industry

• Specialty chemicals sector remains resilient with demand from agriculture, pharma, and manufacturing.
• Industry P/E of 32.0 — BASF trades at a premium, reflecting brand strength and global backing.
• Sector faces input cost pressures and regulatory challenges.

🧾 Conclusion

• Business Model: Diversified chemical portfolio with strong presence in agrochemicals, performance materials, and industrial solutions.
• Competitive Advantage: Global parentage, low leverage, and diversified revenue streams.
• Entry Zone: ₹4,100–₹4,300 — near recent support and 52-week low.
• Long-Term Holding: Suitable for investors seeking exposure to specialty chemicals with a 3–5 year horizon.