BASF India (BASF)
CyclicalFairStock Score: 68/100 — STEADY
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹4,077.9 |
| Market Cap | ₹17,651.45 Cr |
| P/E Ratio | 28.57 |
| ROCE | 18.02% |
| ROE | 10.95% |
| Dividend Yield | 0.61% |
| Profit Growth | 146.04% |
| Debt/Equity | 0.03 |
| Sales Growth | 28.22% |
| Free Cash Flow | ₹259 Cr |
| Promoter Holding | 73.33% |
| 52-Week Range | ₹3,122.2 — ₹4,829.9 |
| Sector | Chemicals & Petrochemicals |
| Book Value | ₹914.27 |
Strengths
- Minimal leverage: Debt/Equity of 0.04 keeps the balance sheet conservative
- High promoter holding of 73.33% ensures strong owner alignment
- Piotroski F-Score of 8/9 indicates solid financial fundamentals
- Positive free cash flow of ₹259 Cr provides cash generation ability
- ROCE of 18.02% reflects decent capital efficiency
Concerns
- Valuation is excessive: P/E of 38.69 and P/B of 4.43 versus ROE of 10.95%
- Earnings are deteriorating: sales down 3.21% and profits down 34.74%
- Negative EV/EBITDA of -66.37 signals likely operating or data anomalies
- No margin of safety: Graham Number of ₹1,325.90 and DCF of ₹603.79 are far below price
AI Analysis
Let me start with what I like. BASF India has a fortress-like balance sheet with debt-to-equity of just 0.04 and an Altman Z-Score of 3.51, indicating no bankruptcy risk. The promoter holding of 73.33% aligns interests, and the Piotroski F-Score of 8/9 shows solid financial health. ROCE of 18.02% is respectable, and free cash flow of ₹259 Cr gives it room to breathe. But as Graham taught, price is what you pay, value is what you get. At ₹3,739.05, the market is asking for a P/E of 38.69 and a P/B of 4.43. That is a rich price for a business whose sales fell 3.21% and profits collapsed 34.74% in the latest year. The ROE of 10.95% is hardly exciting, and the dividend yield of 0.58% offers little comfort while you wait. The Graham Number of ₹1,325.90 suggests the intrinsic value is far below the current price, giving a margin of safety of negative 160%. Even a conservative DCF pegs fair value at just ₹603.79. That is not an investment; it is speculation. The five-year revenue CAGR of 63.20% looks dazzling, but recent quarters tell a different story—latest quarter sales of ₹3,877 Cr and net profit of ₹105 Cr show momentum has stalled. The negative EV/EBITDA is a red flag that something unusual is happening at the operating level. This is not a business I would buy at this price. I need a wide margin of safety, and here the math simply does not work.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer