BASF India Limited (BASF) AI Stock Analysis

• Market Cap: ₹149.79B
• Dividend Yield: 0.51%
• Average Volume (3M): 983.00
• Price to Earnings (P/E): 40.2
• 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): 85.1
• Revenue Forecast (FY): ₹148.67B

• Rating: 59 Neutral
• Price Target: ₹3,616.00 ▼(-8.20% 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

Balance Sheet Strength

Low leverage and a high equity ratio provide durable financial flexibility, reducing refinancing and solvency risk through cycles. Stable ROE and conservative capital structure support capex, working capital needs and strategic investments over 2–6 months, enhancing resilience to industry volatility.

Parent Group Product & Supply Access

Integration with BASF’s global portfolio and supply chain is a structural competitive advantage: it provides technology transfer, product breadth and sourcing resilience. This supports durable B2B relationships, cross-selling and maintenance of supply in constrained markets, aiding medium-term revenue stability.

Stable Gross Margins & Improving Ops

Consistent gross margins and rising EBIT/EBITDA margins reflect effective cost management and operating leverage. These structural improvements increase margin sustainability, allowing the company to better absorb raw-material or pricing shocks and preserve cash generation over the coming months.

Negative Factors

Recent Revenue Contraction

Negative revenue growth, even modest, signals potential demand softness, product-mix headwinds or competitive pressure. Sustained or recurring top-line declines constrain scale benefits and can limit reinvestment capacity, making medium-term growth recovery dependent on stronger domestic demand or new wins.

EPS Decline / Earnings Volatility

A large drop in EPS points to margin compression, one-offs or operational volatility that reduces predictable earnings power. This undermines retained-earnings growth and can constrain consistent reinvestment or shareholder returns, elevating execution risk over the next several quarters.

Variable Free Cash Flow

Fluctuating operating cash flow and variable free-cash-flow growth limit the reliability of internally funded investments and payouts. While FCF is positive, inconsistency makes planning for capex, working-capital needs and strategic moves harder, increasing vulnerability during sector slowdowns.

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 Limited primarily makes money by selling BASF-branded chemical and related products in India, generating revenue from (1) trading/marketing and distribution of imported and domestically sourced products from the BASF group and other supply arrangements, and (2) sales of products manufactured/processed locally where applicable, to industrial and agricultural customers. Its revenue streams are typically organized by business segments aligned with BASF’s portfolio (chemicals, materials, industrial solutions, surface technologies, nutrition & care, and agricultural solutions), with each segment monetized through product sales to B2B customers and channel partners. Earnings are influenced by sales volumes, product mix, and pricing (including pass-through of raw-material and energy costs where market conditions allow), as well as currency movements that affect import costs and realizations. As part of the BASF group, a significant factor contributing to its ability to earn revenue is access to the parent group’s technology, product portfolio, and global supply chain, enabling it to offer a wide range of specialty and commodity chemical solutions to Indian customers. null

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	112.04B	152.60B	137.67B	136.28B	130.82B	95.43B
Gross Profit	14.74B	24.09B	23.02B	20.68B	21.51B	16.98B
EBITDA	4.78B	7.33B	9.66B	7.39B	9.50B	7.05B
Net Income	2.72B	4.79B	5.63B	4.03B	5.95B	5.53B
Balance Sheet
Total Assets	76.73B	84.62B	72.33B	65.65B	61.10B	51.44B
Cash, Cash Equivalents and Short-Term Investments	1.90B	8.20B	6.23B	3.67B	1.26B	1.73B
Total Debt	1.46B	1.90B	1.56B	1.06B	1.22B	2.85B
Total Liabilities	38.85B	48.28B	40.09B	38.63B	37.74B	33.58B
Stockholders Equity	37.88B	36.34B	32.23B	27.01B	23.36B	17.86B
Cash Flow
Free Cash Flow	-10.24B	1.71B	7.06B	4.39B	2.00B	4.15B
Operating Cash Flow	-9.32B	3.73B	8.07B	5.31B	3.30B	4.83B
Investing Cash Flow	4.98B	-1.14B	-4.50B	-1.99B	-1.20B	1.82B
Financing Cash Flow	-1.38B	-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: Neutral

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 3522.89, above the 50-day MA of 3647.90, and below the 200-day MA of 4375.89, indicating a bearish trend. The MACD of -71.42 indicates Positive momentum. The RSI at 42.33 is Neutral, neither overbought nor oversold. The STOCH value of 77.83 is Neutral, 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	₹222.24B	31.76	―	0.12%	-2.24%	31.43%
VINATIORGA	69 Neutral	₹144.74B	40.85	―	0.48%	8.96%	17.70%
DCMSHRIRAM	66 Neutral	₹163.58B	23.03	―	1.01%	13.39%	36.62%
ATUL	64 Neutral	₹184.28B	28.12	―	0.41%	16.46%	43.59%
AARTIIND	63 Neutral	₹154.21B	25.48	―	0.26%	8.26%	-34.62%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BASF	59 Neutral	₹149.79B	40.15	―	0.51%	0.43%	-42.29%