iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

BASF: Performance driven by Agri

20 Nov 2023 , 02:08 PM

  • BASF India’s performance remained under pressure during H1’24, due to soft demand and severe pricing pressure. Global over capacity amid demand slowdown impacted performance. Agri-solutions performance came in strong, while other segments’ profitability either remained subdued or incurred losses.
  • Despite delayed monsoons, Agri-solutions reported ~10% YoY growth in H1’24. Ebit was up 96% to Rs3.1bn (margins at 25.3%). Strong performance was driven by the recently launched insecticide Exponus. The top two products include Exponus (insecticides) and Tinger (herbicide).
  • Optimism around BASF India largely stems from its strong parentage. Globally, the BASF group has a much wider and richer product portfolio and believes in setting up Verbund sites. However, the expectation of similar investments in India is yet to see light.
  • As per the management, India continues to be a growth story, though the case for stepping up investments is not yet compelling given the lack of feedstock-availability. Also, its global units are currently under-utilised given weak demand which is likely to delay investments in India.
  • Analysts of IIFL Capital Services await strong capex announcements before becoming constructive on the company. At 26x FY25 earnings, valuation does look reasonable for an MNC like BASF India; however, lack of clear growth visibility is what compels us to remain on the side-line. Analysts of IIFL Capital Services have not rated the stock.

Related Tags

  • BASF
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Securities Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.