⚠ 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: 3.4
| Stock Code | BASF | Market Cap | 16,260 Cr. | Current Price | 3,754 ₹ | High / Low | 5,424 ₹ |
| Stock P/E | 42.3 | Book Value | 881 ₹ | Dividend Yield | 0.53 % | ROCE | 18.0 % |
| ROE | 13.7 % | Face Value | 10.0 ₹ | DMA 50 | 3,870 ₹ | DMA 200 | 4,404 ₹ |
| Chg in FII Hold | -0.01 % | Chg in DII Hold | -0.01 % | PAT Qtr | 101 Cr. | PAT Prev Qtr | 147 Cr. |
| RSI | 52.5 | MACD | -64.7 | Volume | 40,331 | Avg Vol 1Wk | 21,784 |
| Low price | 3,523 ₹ | High price | 5,424 ₹ | PEG Ratio | -6.33 | Debt to equity | 0.04 |
| 52w Index | 12.2 % | Qtr Profit Var | -21.0 % | EPS | 92.2 ₹ | Industry PE | 25.9 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT declined to 101 Cr. from 147 Cr., showing earnings pressure. EPS stands at 92.2 ₹.
- Margins: ROCE at 18.0% and ROE at 13.7% indicate moderate efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.04 reflects negligible leverage, enhancing financial stability.
- Cash Flow: Stable operations but declining profits may impact cash generation.
💹 Valuation Indicators
- P/E Ratio: 42.3, significantly higher than industry average of 25.9, suggesting overvaluation.
- P/B Ratio: Current price (3754 ₹) vs. book value (881 ₹) shows a steep premium.
- PEG Ratio: -6.33, indicating weak growth prospects relative to valuation.
- Intrinsic Value: Current market price appears stretched compared to fundamentals.
🏢 Business Model & Competitive Advantage
- Diversified presence in chemicals and specialty products with global brand recognition.
- Strong distribution network and established client base.
- Low debt enhances resilience and long-term sustainability.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range lies between 3,300–3,500 ₹, given current overvaluation and profit decline.
- Long-Term Holding: Suitable for cautious investors seeking exposure to specialty chemicals, but entry should be closer to fair value.
✅ Positive
- Debt-free balance sheet ensures financial stability.
- Strong EPS of 92.2 ₹ supports long-term value creation.
- ROCE at 18% reflects decent capital efficiency.
⚠️ Limitation
- Quarterly PAT declined from 147 Cr. to 101 Cr., showing earnings pressure.
- P/E ratio (42.3) well above industry average, indicating steep valuation.
- PEG ratio negative (-6.33), suggesting weak growth outlook.
📉 Company Negative News
- FII holding decreased by -0.01% and DII holding by -0.01%, showing slight institutional caution.