BASF - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 2.8
| Stock Code | BASF | Market Cap | 15,209 Cr. | Current Price | 3,512 ₹ | High / Low | 5,260 ₹ |
| Stock P/E | 36.5 | Book Value | 919 ₹ | Dividend Yield | 0.71 % | ROCE | 14.7 % |
| ROE | 10.9 % | Face Value | 10.0 ₹ | DMA 50 | 3,525 ₹ | DMA 200 | 3,890 ₹ |
| Chg in FII Hold | 1.21 % | Chg in DII Hold | -0.13 % | PAT Qtr | 63.6 Cr. | PAT Prev Qtr | 105 Cr. |
| RSI | 51.7 | MACD | -38.4 | Volume | 18,290 | Avg Vol 1Wk | 17,740 |
| Low price | 2,907 ₹ | High price | 5,260 ₹ | PEG Ratio | 12.5 | Debt to equity | 0.03 |
| 52w Index | 25.7 % | Qtr Profit Var | 93.2 % | EPS | 96.3 ₹ | Industry PE | 28.7 |
BASF shows weak swing trading potential due to stretched valuation and declining profitability. The P/E ratio (36.5) is higher than the industry average (28.7), and the PEG ratio (12.5) suggests growth is not keeping pace with valuation. Fundamentals are moderate: ROCE at 14.7% and ROE at 10.9% are decent, while debt-to-equity is very low (0.03), reflecting financial stability. Technical indicators are mixed: RSI at 51.7 is neutral, but MACD at -38.4 indicates bearish momentum. The stock is trading near its 50 DMA (3,525 ₹) and below its 200 DMA (3,890 ₹), showing weakness. PAT declined sharply (63.6 Cr vs 105 Cr), raising concerns about earnings consistency.
🔑 Optimal Entry Price: 3,400–3,450 ₹ (near support levels).
📤 Exit Strategy if Holding: Consider exiting near 3,700–3,750 ₹ resistance unless momentum improves.
✅ Positive
- 📈 Debt-free balance sheet ensures financial stability.
- 📊 Decent ROCE and ROE.
- 📉 FII holdings increased (+1.21%), showing foreign investor confidence.
- 📈 Dividend yield (0.71%) adds shareholder value.
⚠️ Limitation
- 📉 High P/E ratio compared to industry peers.
- 📊 PEG ratio (12.5) suggests poor valuation relative to growth.
- 📉 Weak technical indicators (MACD bearish, RSI neutral).
- 📉 Stock trading below 200 DMA shows weakness.
📰 Company Negative News
- 📉 Sharp decline in quarterly PAT (63.6 Cr vs 105 Cr).
- ⚠️ Profit variation (+93.2%) indicates volatility in earnings.
- 📉 DII holdings decreased (-0.13%), showing reduced domestic confidence.
🌟 Company Positive News
- 📈 EPS at 96.3 ₹ provides a solid earnings base.
- 📊 Debt-free structure supports resilience.
- 📉 FII confidence with increased stake.
🏭 Industry
- 📊 Industry P/E at 28.7, lower than BASF, showing sector is moderately valued.
- 📈 Chemicals sector benefits from long-term demand in industrial applications.
- ⚠️ Valuation gap may limit upside compared to peers.
📌 Conclusion
BASF is a weak swing trade candidate due to overvaluation and declining profitability. Entry is best near 3,400–3,450 ₹ with cautious exit around 3,700–3,750 ₹. Fundamentals are stable with low debt, but weak technicals and earnings volatility limit short-term upside. Suitable only for risk-tolerant traders with strict stop-loss discipline.