Hold BASF India, target price Rs 1484: Emkay Global

Emkay Global has given a hold rating to BASF India with a target price of Rs 1484. The share price moved up by 2.79 per cent from its previous close of Rs 1628.55. The stock’s last traded price is Rs 1665.25.

BASF India Ltd., incorporated in the year 1943, is a Mid Cap company (having a market cap of Rs 7069.63 Crore) operating in Chemicals sector.

For the quarter ended 30-06-2020, the company reported a Standalone sales of Rs 1769.70 Crore, down 4.27 % from last quarter Sales of Rs 1848.59 Crore and up 9.96 % from last year same quarter Sales of Rs 1609.46 Crore. The Company reported net profit after tax of Rs -29.15 Crore in latest quarter.

Investment Rationale
Overall balanced exposure for a business that encompasses numerous segments shall continue to deliver moderate growth in the coming years. However, margin volatility in segments such as Materials and Surface Technologies remains key monitorable. The brokerage believes that robust volume growth in Agriculture Solutions is critical for the medium term. It has rolled forward the valuations to Sept’22E earnings and raises TP to Rs1,484 (28x Sept’22E EPS vs 24x earlier).

Promoter/FII Holdings
Promoters held 73.3 per cent stake in the company as of June 30, 2020, while FIIs held 2.9 per cent, DIIs 7.8 per cent and public and others 16 per cent.