BASF India Limited (BASF) AI Stock Analysis

• Market Cap: ₹158.68B
• Dividend Yield: 0.51%
• Average Volume (3M): 983.00
• Price to Earnings (P/E): 42.0
• Beta (1Y): 0.28
• Revenue Growth: 0.43%
• EPS Growth: -42.29%
• Country: IN
• Employees: 1,401
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 24.50
• Shares Outstanding: 43,285,640
• 10 Day Avg. Volume: 781
• 30 Day Avg. Volume: 983
• PEG Ratio: -2.69
• Price to Book (P/B): 5.29
• Price to Sales (P/S): 1.26
• P/FCF Ratio: 112.79
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ₹3,733.00 ▼(-5.23% Downside)
• Action: Reiterated Date: 12/02/25
• Date: Action: Reiterated 12/02/25

BASF India Limited's strong financial performance is the most significant factor, showcasing robust revenue growth and a solid balance sheet. However, technical indicators point to bearish momentum, and the stock appears overvalued with a high P/E ratio and low dividend yield. These factors collectively result in a moderate overall stock score.

Positive Factors

Strong balance sheet

Low leverage and a high equity ratio provide durable financial flexibility. This reduces refinancing risk across cycles, supports capex and working capital needs, and allows the company to invest in specialty product development and distribution without excessive reliance on external debt.

Access to BASF group portfolio

Being part of BASF grants sustained competitive advantages: technology transfer, broad product range, and supply security. These structural assets support cross-selling across industries, faster new-product commercialization, and resilience versus smaller local competitors over the medium term.

Positive cash generation

Consistent positive operating and free cash flow underpins internal funding for growth, dividends and working capital. Over 2–6 months this cash generation sustains investments in specialty segments and buffers against cyclical downturns without needing large external financing.

Negative Factors

EPS volatility

A sharp decline in EPS growth signals earnings volatility that can persist across cycles in chemicals. This undermines predictability for reinvestment and shareholder returns, may reflect margin pressure or nonrecurring items, and complicates multi-quarter planning and capital allocation.

Net profit margin erosion

A sustained decline in net margin points to structural cost or pricing pressures. Even with stable gross margins, net margin erosion reduces retained earnings available for R&D and capex, and over months could limit the company's ability to expand specialty offerings or absorb input cost shocks.

Input cost & currency exposure

Reliance on imported inputs and energy plus sensitivity to currency swings creates ongoing margin risk. If pass-through of cost increases is limited, profitability compresses. This structural exposure raises earnings variability and may require hedging or pricing strategies that affect competitiveness.

BASF India Limited Business Overview & Revenue Model

Company Description

BASF India Limited provides chemicals, materials, industrial solutions, surface technologies, nutrition and care, and agricultural solutions in India. Its Agricultural Solution segment offers crop protection products, such as insecticides, herbicides, fungicides, and plant growth regulators. The company's Chemicals segment provides petrochemicals, including oxo-alcohols, acrylic acid, acrylic monomers, and specialty plasticizers; and intermediate chemicals for pharmaceuticals, agrochemicals, coatings, food and feed, flavor and fragrance, surfactants, rubber chemicals, textiles, personal care, adhesives, dyes, etc. Its Materials segment offers performance materials, such as polyurethane, and engineering and specialty plastics; and monomers comprising basic raw materials for polyurethanes, inorganics, and polyamides, as well as its precursors. The company's Industrial Solutions segment provides dispersions, resins, additives, and performance chemicals for paints and coatings, construction, paper, adhesives, automobile, printing, and packaging industries. Its Surface Technologies segment offers catalysts and coatings. The company's Nutrition & Care segment provides solutions to personal care, home care and institutional cleaning, and industrial formulation segments; and products for human nutrition, animal nutrition, pharma solutions, and aroma ingredients. It also exports its products. The company was incorporated in 1943 and is based in Navi Mumbai, India. BASF India Limited is a subsidiary of BASF SE.

How the Company Makes Money

BASF India generates revenue primarily through the sale of its diverse chemical products and solutions across multiple sectors. The company's revenue model is based on the production and distribution of a broad range of products, including agricultural solutions that enhance crop yield, performance chemicals that improve product efficiency, and advanced materials for various industrial applications. Key revenue streams include sales from crop protection products, performance materials, and specialty chemicals. Additionally, BASF India benefits from strategic partnerships with local and international companies, enhancing its market reach and innovation capabilities. The company's strong focus on research and development allows it to create new products and solutions that meet evolving customer needs, thereby driving further sales growth.

BASF India Limited Financial Statement Overview

Summary

BASF India Limited exhibits strong financial performance with consistent revenue and profit growth. The balance sheet is solid, with low leverage and a high equity ratio, emphasizing financial stability. Cash flow generation is generally positive, though there are fluctuations in free cash flow growth. Overall, the company shows a healthy financial position with potential for sustained growth in the specialty chemicals industry.

Income Statement

BASF India Limited has shown a strong revenue growth trajectory over the past years, with a notable increase from 2021 to 2025. The gross profit margin has remained stable, indicating effective cost management. However, net profit margin has slightly declined, suggesting the need for improved cost efficiency or pricing strategies. EBIT and EBITDA margins have shown positive trends, reflecting improved operational efficiency.

Balance Sheet

The company maintains a robust balance sheet with a healthy equity ratio, indicating strong financial stability. The debt-to-equity ratio is low, suggesting conservative leverage and reduced financial risk. Return on equity has been positive and stable, indicating effective use of shareholders' funds. Overall, the balance sheet reflects a sound financial position with low risk.

Cash Flow

Operating cash flow has shown fluctuations but remains positive, indicating the company's ability to generate cash from operations. Free cash flow has been positive, supporting financial flexibility. However, the free cash flow growth rate has been variable, which may indicate challenges in maintaining consistent cash flow growth. The cash flow to net income ratios suggest efficient cash conversion.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	71.61B	152.60B	137.67B	136.28B	130.82B	95.43B
Gross Profit	10.44B	24.09B	23.02B	20.68B	21.51B	16.98B
EBITDA	2.87B	7.33B	9.66B	7.39B	9.50B	7.05B
Net Income	1.64B	4.79B	5.63B	4.03B	5.95B	5.53B
Balance Sheet
Total Assets	0.00	84.62B	72.33B	65.65B	61.10B	51.44B
Cash, Cash Equivalents and Short-Term Investments	7.77B	8.20B	6.23B	3.67B	1.26B	1.73B
Total Debt	0.00	1.90B	1.56B	1.06B	1.22B	2.85B
Total Liabilities	-36.34B	48.28B	40.09B	38.63B	37.74B	33.58B
Stockholders Equity	36.34B	36.34B	32.23B	27.01B	23.36B	17.86B
Cash Flow
Free Cash Flow	0.00	1.71B	7.06B	4.39B	2.00B	4.15B
Operating Cash Flow	0.00	3.73B	8.07B	5.31B	3.30B	4.83B
Investing Cash Flow	0.00	-1.14B	-4.50B	-1.99B	-1.20B	1.82B
Financing Cash Flow	0.00	-1.29B	-1.02B	-906.90M	-2.57B	-5.92B

BASF India Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3939.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BASF, the sentiment is Negative. The current price of 3939.1 is above the 20-day moving average (MA) of 3686.89, above the 50-day MA of 3759.14, and below the 200-day MA of 4461.08, indicating a bearish trend. The MACD of -38.15 indicates Positive momentum. The RSI at 40.43 is Neutral, neither overbought nor oversold. The STOCH value of 10.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:BASF.

BASF India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSCL	74 Outperform	₹238.37B	33.17	―	0.12%	-2.24%	31.43%
VINATIORGA	69 Neutral	₹155.98B	35.21	―	0.48%	8.96%	17.70%
DCMSHRIRAM	66 Neutral	₹172.71B	26.03	―	1.01%	13.39%	36.62%
ATUL	64 Neutral	₹195.31B	32.87	―	0.41%	16.46%	43.59%
AARTIIND	63 Neutral	₹166.65B	44.08	―	0.26%	8.26%	-34.62%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BASF	59 Neutral	₹158.68B	41.95	―	0.51%	0.43%	-42.29%

BASF India Limited Corporate Events

BASF India Initiates Postal Ballot for Director Appointment

BASF India Limited has announced the commencement of a postal ballot process, utilizing remote e-voting, to seek shareholder approval for the appointment of Mr. Andrew George Postlethwaite as a Non-Executive Non-Independent Director, effective December 1, 2025. This move aligns with regulatory requirements and reflects the company’s commitment to maintaining robust governance practices, potentially impacting its strategic direction and stakeholder engagement.