BASF India Ltd. | Q3FY15 Result Update | Poor set of performance: Maintain NEUTRAL: IndiaNivesh

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Valuation
At CMP of Rs.1366, the stock is trading at EV/EBITDA multiple of 39.0x FY15E, 22.6x
FY16E and 14.9x FY17E estimates. The parents focus to double Asia’s revenue in
seven year could lead to aggressive expansion in India. Additionally, introduction
of low carbon construction solution, advanced pharmaceutical products,
environment friendly coatings and solutions for intensive agriculture should
facilitate revenue growth. However, the key concern for BASF India is declining
margins and instability in quarterly performances. We maintain NEUTRAL stance
on BASF (PT of Rs.779 is already achieved).

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BASF India Ltd.|Q2FY15 Result Update | Mixed set of performance: Maintain NEUTRAL ::IndiaNivesh

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Technicals: BASF, Suzlon, Balrampur Chini, IRB, Gujarat NRE Coke, Alok Ind:: Business Line

BASF Buy Target Price: Rs802 CMP: Rs663 Upside: 21% :centrum

BASF

Buy

Target Price: Rs802

CMP: Rs663

Upside: 21%

Niche products to spur growth

BASF India is a part of BASF SE, the largest chemicals company in the world. BASF India is likely to show strong growth momentum on the back of massive investment of Rs10bn on a new facility and consolidating its niche chemicals businesses with itself. Rising agri growth, income levels and urbanisation are expected to aid overall growth as BASF offers niche and innovative products and solutions to the segment it represents.  Strong patronage will help BASF India to introduce new products to customers. We believe BASF is a secular growth story which offers a safe bet. Hence, we initiate coverage on BASF India with a ‘Buy’

m  Focus on niche segments to propel growth: BASF’s focus on niche segments like agricultural solutions, care chemicals, nutrition & health and paper chemicals, coatings and construction chemicals is expected to fuel growth. New product introductions and innovative solutions for these segments make BASF a preferred supplier of these chemicals.
m  Significant capex to cater to the growing Indian market: BASF has proposed over Rs10bn capex with a new facility at Dahej. This facility will be operational by 2014 and will cater to growing segments including care chemicals, polyurethanes, coatings and the paper industry. This investment will more than double the gross block of the company and has the potential to generate revenues of over Rs8-10bn annually in initial years.
m  Potential delisting candidate: BASF SE has upped its holding in BASF India from about 53% in FY09 to over 73% currently. Following the precedent set by other MNCs, BASF India could also delist. Historical data suggests that delisting has been favourable for minority shareholders with significant value generation.
m  Concerns: Exchange rate volatility, weak monsoons and slower growth in India
m  Premium for secular growth, Buy: We estimate a CAGR of 14.7% in revenues, 23.4% in operating profit and 28.0% in PAT for BASF India over FY12-14E. This is backed by robust growth in agricultural solutions, performance chemicals and functional solutions businesses along with margin expansion. Post announcement of merger of BASF entities with BASF India, the average P/E multiple of the company in the last two years was about 21x. We believe BASF deserves such premium valuations and hence value the stock at the same average multiple of 21x FY14E EPS of Rs38.2. We thus arrive at a price target of Rs802 and initiate coverage with a ‘Buy’ rating on the stock.

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MTT BUY CALL ON BASF INDIA:: Anand Rathi

TRACKING TECHNICALS - MTT BUY CALL ON BASF INDIA

SCRIP NAME : BASF INDIA                   SECTOR :     CHEMICALS              Date : 31st AUGUST , 2012

Sizzling Stocks: Max India , BASF India: Business Line

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Sizzling Stocks: Max India (Rs 192.7)

The stock bottomed in early January this year taking support from its long-term base level at Rs 140. Since then, it has been on a medium-term uptrend. Penetrating its 50 and 200-day moving average as well as a key resistance at Rs 185, the stock accelerated last week. But, Friday's decline evaporated some of its weekly gains and the stock finished the week gaining 10 per cent. We notice the formation of a bearish engulfing candlestick pattern in the daily candlestick chart implying short-term trend reversal. The stock can continue its decline and reach Rs 185 and then Rs 174 in the short-term. Nonetheless, its medium-term uptrend will remain in place as long as the stock trades above Rs 166.

Strong breakout of the immediate resistance at Rs 208 will accelerate the stock higher to Rs 220 and to Rs 236 in the medium-term.

BASF India (Rs 620.4)

The stock skyrocketed 19.5 per cent breaking out of its sideways consolidation phase between Rs 490 and Rs 530 last week. This rally has reinforced the stock's medium-term uptrend that has been in place from its December 2011 low of Rs 427. In the medium-term the stock can rally to Rs 655 and then to Rs 685.

But in the near-term, we do not rule out a corrective decline as the stock's daily indicators are featuring in the overbought levels and it is testing key medium-term resistance level at Rs 628. A decline to Rs 590 or even to the next support level at Rs 557 is possible in the near-term. Strong weekly close below Rs 505 will mar the stock's medium-term uptrend and drag it down to Rs 490 and then to Rs 473.

KIFS Result update of Zydus,BOC,BASF,Supreme Petrochem

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KIFS Result update of:

ZYDUS WELLNESS Q1 FY12

OVERVIEW

Zydus is engaged in the business of manufacturing and selling of all types of health food and wellness product. It combines the best of healthcare, nutrition and cosmeceuticals to bring to its users an array of the best wellness products to enrich its customers' life. Its products comprise Sugar Free, Nutralite and EverYuth. The Company also made its foray in neutraceuticals space by launching ActiLife, a nutritional milk additive for adults. The management is targeting revenue of Rs. 500 crores by 2013-14 by creating newer experiences through its products that nourish, nurture and energies the lives of the consumers.

Key highlights:

· Total income  grew marginally to Rs. 88 cr. v/s Rs. 87 cr in June-10

· Operating Profit grew by 24% Y-o-Y to Rs. 15 cr.  v/s Rs. 12 cr in June-10

· OPM grew by 323 bps Y-o-Y to 16.75%  v/s 13.52 % in June-10

· Net profit grew by 10 % Y-o-Y to Rs. 8.5 cr.  v/s Rs. 7.7 cr in June-10

· NPM grew by 87 bps Y-o-Y to 9.62 %  v/s 8.75 % in June-10

BOC INDIA Q1 FY12

OVERVIEW

BOC India (BOCI) is engaged in manufacturing of industrial gases and undertaking engineering projects. The company supplies more than 20,000 gases and mixtures - that makes steel plants more efficient, helps conserving environment, preservation of food, helping hospitals sustain lives and in general makes customers more productive. BOC India owns one of the Asia’s largest air separation units. The company owns more than 20 manufacturing units, 40 warehouses and depots, 100 dealers and more than 100 dedicated tankers in the distribution fleet. BOC India has signed 15 year gas supply agreement with Steel Authority of India (SAIL) Rourkela Steel Plant.

Key highlights:

· Total income  grew by 1% Y-o-Y to Rs. 250 cr. v/s Rs. 249 cr in June-10

· Operating Profit grew by 12% Y-o-Y to Rs. 53 cr.  v/s Rs. 48cr in June-10

· OPM grew by 306 bps Y-o-Y to 21.34%  v/s 18.28% in June-10

· Net profit grew by 11% Y-o-Y to Rs. 27 cr.  v/s Rs. 24 cr in June-10

· NPM grew by 151 bps Y-o-Y to 10.77%  v/s 9.26 % in June-10

BASF INDIA Q1 FY12

OVERVIEW

BASF India Ltd (BIL) is the flagship company of the Germany-based BASF group’s India operations. BASF is world’s leading company in chemical sector. BASF Group is a conglomerate that caters to various segments such as plastics, care chemicals, construction chemicals, petrochemicals, automotive and refinery chemicals, paper chemicals etc. BASF India has three manufacturing facilities located in Thane, Mangalore and Dadra.

Key highlights:

· Total income  grew by 53% Y-o-Y to Rs. 1016 cr. v/s Rs. 664 cr in June-10

· Operating Profit grew by 10% Y-o-Y to Rs. 91 cr.  v/s Rs. 83 cr in June-10

· OPM fell by 347 bps Y-o-Y to 8.99%  v/s 12.46% in June-10

· Net profit grew by 8% Y-o-Y to Rs. 53 cr.  v/s Rs. 49 cr in June-10

· NPM fell by 218 bps Y-o-Y to 5.18%  v/s 7.36 % in June-10

SUPREME PETROCHEM Q1 FY12

OVERVIE

Supreme Petrochem Ltd (SPL) is a joint venture between the Supreme Industries Ltd. and the Rajan Raheja Group. SPL is the leader in Polystyrene business in the Indian market place with a share of more than 50%. SPL is also the largest exporter of PS from India, exporting to over 80 countries around the globe. Currently SPL's exports are over 100,000 tonne per year. Supreme Petrochem owns and operates a state-of-the art Polystyrene facility, with an installed capacity of 2,72,000 TPA located at Nagothane in Raigad District. The facility also includes a world class colouring and compounding facility with an installed capacity of 17000 TPA.

Key highlights:

· Total income  grew by 11% Y-o-Y to Rs. 518 cr. v/s Rs. 466 cr in June-10

· Operating Profit grew by 34% Y-o-Y to Rs. 38 cr.  v/s Rs. 28 cr in June-10

· OPM grew by 127 bps Y-o-Y to 7.39%  v/s 6.12% in June-10

· Net profit grew by 56% Y-o-Y to Rs. 21 cr.  v/s Rs. 14 cr in June-10

· NPM grew by 119 bps Y-o-Y to 4.1%  v/s 2.91 % in June-10