Shares of BASF India continue to see unusual price action along with heavy volumes in the session on October 1, rising for a fifth day to nudge closer to its 52-week high of Rs 8,070.
The shares have clocked a volume of 2 lakh shares till 11:30am, which is almost eight times the one-month average.
The shares are now higher by 19% in the last five days and up 21% in the last 30 days, while on YTD basis, BASF India has gained nearly 158%. This year, BASF India has given positive returns every month, barring January. The market capitalisation of BASF India stands at Rs 34,275 crore.
Moneycontrol data shows BASF India's Trailing Twelve Month (TTM) P/E at 51, considered high compared to its historical trend. The company is priced at 10.64 times the book value, and its dividend yield is 0.19% on a trailing 12-month basis.
Coatings Business - Major Trigger?
On September 27, the company's German parent announced that it would explore strategic options for value creation in its global coatings business. BASF SE, the global chemical giant revealed a new corporate strategy aimed at reshaping its portfolio, and enhancing capital allocation.
The parent entity said its coatings business, presently part of Surface Technologies segment, will be transferred to BASF India Coatings - a wholly-owned subsidiary of BASF India by the end of 2024 for 'better business focus'.
As major car makers line up launches in the SUV and EV space, BASF India said it is betting on the trend of 'premiumization of cars', given that India is also emerging as a key export hub for many top automotive players. These indicators point towards an upbeat outlook, BASF India said adding that its automotive coatings division is prepared to tap into this growth.
BASF SE also hinted at plans for the future development of its battery materials business, according to reports. The new measures announced by BASF SE also include preparing the parent's agricultural unit for a possible listing.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
