BASF - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:14 pm
Back to Fundamental ListFundamental Rating: 3.4
| Stock Code | BASF | Market Cap | 16,872 Cr. | Current Price | 3,898 ₹ | High / Low | 5,950 ₹ |
| Stock P/E | 43.9 | Book Value | 881 ₹ | Dividend Yield | 0.52 % | ROCE | 18.0 % |
| ROE | 13.7 % | Face Value | 10.0 ₹ | DMA 50 | 4,249 ₹ | DMA 200 | 4,644 ₹ |
| Chg in FII Hold | -0.07 % | Chg in DII Hold | 0.12 % | PAT Qtr | 101 Cr. | PAT Prev Qtr | 147 Cr. |
| RSI | 20.6 | MACD | -137 | Volume | 13,193 | Avg Vol 1Wk | 13,074 |
| Low price | 3,786 ₹ | High price | 5,950 ₹ | PEG Ratio | -6.57 | Debt to equity | 0.04 |
| 52w Index | 5.18 % | Qtr Profit Var | -21.0 % | EPS | 92.2 ₹ | Industry PE | 26.6 |
📊 Financials: BASF shows moderate fundamentals with ROE at 13.7% and ROCE at 18.0%, reflecting decent capital efficiency. EPS stands at ₹92.2, supported by consistent profitability. Debt-to-equity ratio of 0.04 indicates very low leverage, ensuring financial stability. However, quarterly PAT declined from ₹147 Cr. to ₹101 Cr. (-21% QoQ), showing earnings pressure.
💹 Valuation: Current P/E of 43.9 is significantly higher than the industry average of 26.6, suggesting overvaluation. P/B ratio (~4.4) is elevated compared to book value of ₹881. PEG ratio of -6.57 highlights weak earnings growth relative to valuation. Intrinsic value appears lower than current price, limiting margin of safety.
🏭 Business Model: BASF operates in specialty chemicals with diversified applications across agriculture, materials, and performance products. Competitive advantage lies in global brand presence, integrated manufacturing, and R&D capabilities. However, cyclical demand and margin pressures remain challenges.
📈 Entry Zone: Attractive accumulation zone is around ₹3,600–₹3,750 (near support and below DMA 50 & 200). Current price ₹3,898 is below both DMA 50 and DMA 200, indicating bearish momentum. RSI at 20.6 suggests oversold conditions, while MACD (-137) signals weakness.
🕰️ Long-Term Guidance: BASF remains a strong global player in chemicals, but valuations are stretched and earnings are under pressure. Best strategy is to accumulate near support levels and hold for long-term gains, while expecting volatility in the near term.
Positive
- Strong ROCE (18.0%) and ROE (13.7%) indicate healthy capital efficiency 💪
- Debt-to-equity ratio of 0.04 ensures financial stability 💰
- Global brand presence and diversified specialty chemicals portfolio 🌍
Limitation
- High P/E (43.9) compared to industry average ⚠️
- P/B ratio (~4.4) indicates overvaluation 📉
- Negative PEG ratio (-6.57) reflects weak earnings growth ❌
Company Negative News
- Quarterly PAT declined from ₹147 Cr. to ₹101 Cr. (-21% QoQ) 📉
- FII holdings decreased (-0.07%), showing reduced foreign investor confidence ⚠️
Company Positive News
- DII holdings increased (+0.12%), showing domestic institutional support 📊
- Dividend yield at 0.52% provides modest income return 💵
Industry
- Specialty chemicals sector has long-term demand drivers in agriculture, pharma, and materials 🏭
- Industry P/E at 26.6 indicates moderate valuation compared to BASF’s premium 📊
Conclusion
⚖️ BASF is a fundamentally stable specialty chemicals company with strong capital efficiency and low debt. However, current valuations are stretched, and earnings are under pressure. Best strategy is to accumulate near ₹3,600–₹3,750 and hold for long-term growth, while being cautious of short-term volatility.
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