About The CompanyThe company has been engaged in chemical business from long time and has been fairly fancied among the investors in the capital market.
About The Results
BASF India always has flat Q4 quarter as Agri Solution division does not contribute anything significantly to the topline and virtually nil to the bottomline. Inspite of this, the company posted a PAT of Rs.5.48 crores for Q4 against Rs.4.41 in corresponding quarter of previous year, on total income of Rs.204 crores against Rs.197 crores. FY 09 had total income of Rs.1,124 crores against Rs.917 crores of FY 08 while PAT is at Rs.68.64 crores against Rs.59.37 crores. EPS for FY 09 is placed at Rs.21.06 (Rs.17.24). Dividend of 70% has been maintained.
On consolidated basis, BASF Polyurethanes a wholly owned subsidiary is incurring losses, due to which, EPS of the company on consolidated basis, got reduced to Rs.17.24 for the year However, promoters of the company BASF SE have expressed their intention to acquire this subsidiary, which if happens, would re-rate the company as also would increase its bottomline even on consolidated basis.
In July 08, Promoters of the company raised their stake from 52.69% to 71.18% by acquiring shares under open offer at Rs.300 per share. Open offer at the time did not evoke full response as insurance companies and financial institutions did not tender shares in open offer and continue to hold about 18% in the company. The move to delist the company, above Rs.300 may get reinitiated by the Promoters in the near future. Even if it does not, share now ruling at Rs.220 discount current earnings by about 11 times which makes stock a good buy, which can give 30% annualized return
About The StockAt present market scenario any investment at this level of index should be avoided. A wait & watch theory will hold good at the moment.
Disclaimer : I do not have any personal holding in this stock.