BASF India Ltd – In-Depth Stock Research & Analysis (CMP ₹4,503)
🏢 About the Company
BASF India Ltd, part of the global BASF SE Group, operates in six core segments:
🌾 Agricultural Solutions | 🧱 Materials | 🏭 Industrial Solutions | 🧪 Surface Technologies | 🍽️ Nutrition & Care | ⚗️ Chemicals
It leverages its parent group’s global reach (110,000+ employees, €59B revenue in 2020) while focusing on India's growing market with four manufacturing units across Gujarat, Karnataka, and Maharashtra.
🔍 Segment-Wise Revenue Mix
| Segment | Contribution to Revenue | Highlights |
|---|---|---|
| Materials | ~23% | Performance & specialty plastics (polyamides, polyurethanes) |
| Nutrition & Care | ~25% | Personal & animal care, pharma, aroma ingredients |
| Chemicals | ~18% | Petrochemicals & intermediates |
| Agricultural Solutions | ~15% | Insecticides, herbicides (Exponus®, Effico®) |
| Industrial Solutions | ~15% | Dispersions, resins, performance chemicals |
| Surface Technologies | ~4% | Catalysts for refining & petrochemical industry |
📈 Latest Quarterly Performance – Q3 FY25 (Dec 2024)
| Metric | Value (₹ Cr) | YoY Growth |
|---|---|---|
| Revenue | 3,759 | +13.0% |
| Operating Profit (EBITDA) | 170 | -19.8% |
| OPM % | 5% | Flat |
| Net Profit | 104 | -25.7% |
| EPS | ₹23.93 | ↓ YoY |
🔻 Profitability impacted by elevated input costs and pricing pressure in chemicals and agro segments.
📅 12-Month Trailing Data (TTM: FY24–Q3 FY25)
-
Sales (TTM): ₹15,333 Cr
-
Operating Profit: ₹930 Cr (OPM ~6%)
-
Net Profit (TTM): ₹614 Cr
-
EPS (TTM): ₹141.76
🔄 Historical Performance Snapshot (Annual)
| FY | Revenue (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) | OPM | ROCE |
|---|---|---|---|---|---|
| FY21 | 9,558 | 553 | 127.67 | 7% | 23% |
| FY22 | 13,100 | 595 | 137.42 | 7% | 34% |
| FY23 | 13,645 | 403 | 93.08 | 5% | 20% |
| FY24 | 13,767 | 563 | 130.15 | 6% | 25% |
| TTM | 15,333 | 614 | 141.76 | 6% | ~25% |
📌 Strong revenue CAGR (~20%) over the last 3 years, backed by volume growth and product expansion.
💰 Cash Flow & Balance Sheet Strength
| Metric | FY24 | Remarks |
|---|---|---|
| Cash from Ops | ₹807 Cr | 1656% YoY growth; Strong inflow |
| Net Cash Flow | ₹255 Cr | Improving liquidity position |
| Debt (Sep 2024) | ₹177 Cr | Minimal leverage |
| Reserves | ₹3,465 Cr | Strong capital cushion |
| Fixed Assets + CWIP | ₹849 Cr | Low capex, high asset turnover |
📈 Shareholding Pattern (Mar 2025)
| Category | Holding % |
|---|---|
| Promoters | 73.33% |
| FIIs | 4.29% ↑ |
| DIIs | 6.30% |
| Public | 16.07% |
🔍 FIIs have increased stake consistently over last 6 quarters—indicating growing institutional confidence.
📉 Valuation Overview (as of Apr 2025)
| Metric | Value | Remarks |
|---|---|---|
| P/E (TTM) | 31.7x | Above historical avg (Buy Zone ~35%) |
| Price to Sales | 1.3x | Attractive valuation among peers |
| ROE / ROCE | 17.5% / 22.7% | Solid capital efficiency |
| Debt-to-Equity | Near Zero | Financially sound |
| Dividend Yield | 0.3% | Low, but sustainable payout |
| Target Price | ₹5,342 | ~19% upside from CMP ₹4,503 |
🔮 Outlook & Strategy
✅ Positives
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Strong volume-led growth in Materials and Agro segments
-
Margin resilience despite global raw material inflation
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Long-term tailwinds from India’s agrochemical demand, manufacturing-led GDP growth, and polyamide & polyurethane product expansion
⚠️ Challenges
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Input cost volatility (esp. crude-linked chemicals)
-
Chinese oversupply and global pricing pressure
-
Short-term technical weakness in stock movement
📌 Analyst Verdict
🟢 Rating: STRONG BUY
🎯 Price Target: ₹5,342
📈 Upside Potential: ~19%
📉 Short-term caution advised due to momentum indicators, but strong long-term fundamentals remain intact.
🧠 Final Takeaway
BASF India Ltd is a compelling pick for long-term investors seeking exposure to India’s booming industrial, agro, and chemical sectors. The company’s diversified product base, strong promoter backing, and solid financial health make it a high-quality compounder, albeit with short-term margin headwinds.
🎯 Accumulate on dips, especially under ₹4,400. Track margin recovery and Q4 (Mar 2025) performance for re-rating triggers.
Disclaimer:
The information provided on this blog is for educational and informational purposes only and should not be considered as investment advice or a recommendation to buy, sell, or hold any securities. The author is not a SEBI-registered investment advisor or analyst. Readers should conduct their own research and consult with a SEBI-registered financial advisor before making any investment decisions. The blog and its author are not responsible for any financial losses incurred as a result of information provided herein.
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