BASF - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.4

📉 BASF India shows strong fundamentals but weak technical indicators. Entry near ₹4,350 is optimal. If already held, consider exiting around ₹4,750–₹4,850.

📈 Positive

• 💰 ROCE of 18.0% and ROE of 13.7% reflect solid capital efficiency.
• 📉 Debt-to-equity ratio of 0.04 indicates strong financial discipline.
• 📈 EPS of ₹98.4 supports earnings strength.
• 📊 Book value of ₹845 offers a solid asset base.
• 📈 Quarterly PAT improved from ₹32.9 Cr. to ₹147 Cr., showing earnings recovery.

⚠️ Limitation

• 📉 RSI at 43.6 and MACD at -44.8 indicate weak momentum.
• 📉 Trading below DMA 50 and DMA 200 suggests bearish trend.
• 💸 High P/E of 46.8 vs industry average of 32.5 implies overvaluation.
• 📉 Negative PEG ratio (-7.01) signals poor growth relative to valuation.
• 📉 Quarterly profit variation of -30.1% raises concerns about earnings consistency.

📉 Company Negative News

• 📉 BASF India reported a significant decline in Q4 FY24-25 net profit and sales, impacting sentiment

  MarketsMojo.com

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📈 Company Positive News

• 📈 Despite weak financials, BASF India’s technical trend has shifted from sideways to mildly bullish

  MarketsMojo.com

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• 📈 BASF and Carlyle reached a binding agreement to create a global standalone coatings business, boosting strategic outlook

  The Economic Times

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🧪 Industry

• 🧪 Specialty chemicals sector rallied up to 9% recently, driven by expectations of margin improvement from FY26 onwards

  Business Standard

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• 📊 Industry P/E of 32.5 suggests moderate valuation across peers.

✅ Conclusion

• 📉 BASF India is a moderate swing trade candidate with strong fundamentals but weak technicals.
• 📉 Optimal entry price: ₹4,350–₹4,400 (near support and below DMA 50).
• 📈 Exit target: ₹4,750–₹4,850 (near DMA 200 and resistance zone).
• 📌 Watch for MACD crossover and volume spike before entry.

Sources

[1] MarketsMojo

[2] Economic Times

[3] Business Standard

I can chart BASF’s RSI and MACD trends to help visualize its technical setup—just let me know.