Saturday, July 6, 2013

BASF INDIA - REPEAT






BASF INDIA earlier recommended @ Rs.510 on March 23,2011 ( Old Posting HERE). After hitting a high of Rs.770 ,now it is trading around Rs.585. This company is a 73% Subsidiary of worlds largest chemical company BASF SE (Baden Aniline and Soda Factory) of Germany. User Industries of BASF products can be  broadly classified into five  - Chemicals,Plastics,Performance Products,Functional Solutions and Agricultural Solutions.Now a days many MNC parents are less interested in the growth of their listed companies in India and trying to push the business through their unlisted outfits.Some of them even de-merged the high profit-high margin products divisions from the listed firms and merge the same with their privately owned companies operating in India.BASF is an exemption and few years back they merged their entire Indian operating companies -  BASF Coatings (India) Private Limited, BASF Construction Chemicals (India) Private Limited and BASF Polyurethanes India Limited with BASF India Limited- into this listed entity.Now company is working on a massive capacity expansion with a new new project at Dahej with an estimated cost of Rs.1000 Cr.This is BASF's single largest investment in India.This new facility will significantly increase company's production capacity and part of this will be utilised to meet overseas demand .Production from this new facility is expected to start from the first half of 2014.For the latest March quarter ,BASF reported a jump of 70% in its net profit and declared a dividend of 40% .Due to parent company's increasing commitment to BASF India ,addition of massive PRODUCTION capacity ,support and availability of technology from the world leader , possibility of revival chances in Indian Economy ..etc , I believe this is the right time to include BASF India in the core portfolio of any long term Investor @ CMP Rs.550/-
Posted by VALUEPICK at 8:43 AM
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32 comments :

  1. AnonymousJuly 6, 2013 at 9:03 AM

    Hello VP Sir,

    What do you think about HSIL?

    ReplyDelete
  2. Vinay NavdhareJuly 6, 2013 at 9:11 PM

    Hi,

    This is the first time I am commenting.

    I am thinking about investing in Hindi Print Media Publishing companies.
    Would like to know your view among DB Corp, Jagran Prakashan and Hindustan Media Ventures Ltd.?

    DB Corp looks safe bet, while Jagran has foreign currency loans on its book.

    Thank you in advance.

    ReplyDelete
    Replies
    1. VALUEPICKJuly 10, 2013 at 7:29 AM

      Not tracking any companies from Print Media Sector

      Delete
  3. UnknownJuly 7, 2013 at 1:31 PM

    hi Valuepick,

    do you track gokul refoils.. promoters are buying from open market since last couple of months... price is stagnant too since long time at 17Rs odd levels... Gokul and Zaika are pretty known brands in the market... promoter stake too is placed comfortably. Do you think it's a value buy at these levels? may be 5-10% of total portfolio...

    Regards,
    Nitin

    ReplyDelete
  4. AnonymousJuly 8, 2013 at 5:18 PM

    Dear sir,

    Kindly clarify on Granules india's recent developments sir...whether it is a buy at this stage...

    ReplyDelete
  5. VALUEPICKJuly 8, 2013 at 7:44 PM

    I never change my opinion on this stock and repeatedly recommended to buy below Rs.120.I think everyone got many chances fot that.

    ReplyDelete
  6. AnonymousJuly 9, 2013 at 10:58 AM

    Dear VP, do you see any chances of Sequent coming under PCA mechanism in next SEBI review?

    -Sanju

    ReplyDelete
    Replies
    1. VALUEPICKJuly 10, 2013 at 7:31 AM

      PCA is decided based on the volume of just previous quarter.Now it is just 10 days over in this new quarter.How we can say it now.?

      Delete
  7. AnonymousJuly 9, 2013 at 3:09 PM

    sir what are your views on heritage foods now,can I add it to my core portf.

    regards
    manoj

    ReplyDelete
    Replies
    1. VALUEPICKJuly 10, 2013 at 7:34 AM

      Heritage recommended from a level of Rs.235 itself,see the below link

      http://value-picks.blogspot.in/2011/04/heritage-foods-india-ltd-star-in-making.html

      At current price of Rs.500 it is a HOLD for me

      Delete
  8. AnonymousJuly 9, 2013 at 5:45 PM

    Sir,

    Please let us know your take on Honda Siel Power products. Is it a good buy at the current CMP of Rs 400 ?

    Also please confirm your views on Finolex Cables Ltd.

    ReplyDelete
    Replies
    1. VALUEPICKJuly 10, 2013 at 7:35 AM

      Try to buy below Rs.350

      Not tracking Fin cable.

      Delete
  9. AnonymousJuly 9, 2013 at 11:11 PM

    Dear sir,

    Whether Orient bell has also joined the Pca club?

    ReplyDelete
  10. Panti ShuklaJuly 10, 2013 at 8:49 AM

    Dear Sir,
    Heritage Foods after recommending from 235.. also was recommended at 440 during Diwali.

    Since I came to your blog later, I bought at 420-440.. and making money.. Seeing your comment earlier, wondering if anything changed.

    thanks

    ReplyDelete
    Replies
    1. VALUEPICKJuly 10, 2013 at 6:33 PM

      Nothing changed .Since this company is owned by the family of a politcal leader ,de-merger of retail division into a seperate company and induction of investor may happen only post AP election.This is due to issues related with FDI in Retail

      Delete
    2. VinodJuly 10, 2013 at 7:32 PM

      Dear VP,

      Sorry if my question sounds silly, but I think this is the way to learn :)

      How will de-merger of Retail division help investors ? Since it will be a subsidiary of Parent company, the consolidated financial statements should include numbers from subsidiaries too, right ? So how it is going to make difference ?

      Thanks in advance,
      Vinod


      Delete
    3. VALUEPICKJuly 12, 2013 at 5:56 AM

      As you are aware company is making loss from retail division and at the same time it is forced to spend large amout on this division .If they can de-merge it and bring an investor by selling part of the stake of this new company they can more effectively use the available working capital for the deployment in its main company and at the same time no need of compromise in the promoter share holding in the main company.

      Delete
  11. ArunJuly 10, 2013 at 4:17 PM

    Value Pick Ji.

    Can we buy Godawari Power at the current market rate.
    Looks like cheaply valued at present price.

    Looking for your advice

    Thanks
    Arun

    ReplyDelete
    Replies
    1. VALUEPICKJuly 10, 2013 at 6:33 PM

      Performance linked with overall sentiment in steel sector

      Delete
  12. AnonymousJuly 10, 2013 at 4:39 PM

    Dear sir,

    is it a good buy for long term investor for vks projects continuosly upper circuit

    ReplyDelete
    Replies
    1. VALUEPICKJuly 10, 2013 at 6:35 PM

      Not tracking this stock hence no comments.Only continuous upper circuit is not a reason for investment,try to find out whether there is any fundamental reason behind it.

      Delete
  13. AnonymousJuly 12, 2013 at 10:40 AM

    Hello VP,
    Whats your view about Indiabulls Power? The company was not selling anything for last few years and the stock price has come down to 7.30. Do you think the increasing demand for power and the increasing capacity of the plant will make this stock a multibagger?

    ReplyDelete
    Replies
    1. VALUEPICKJuly 13, 2013 at 9:56 AM

      Not interested to recommend any company from Indiabulls group.

      Delete
  14. MadsJuly 12, 2013 at 11:01 AM

    Hi Vp Sir..

    DO you believe if Britannia has just started its journey from Hibernation? Can it be able to improve their margins further?? Even if they repeat their q4Fy13 performance,it would end up with 28-29 EPS. Whats your view??

    ReplyDelete
    Replies
    1. VALUEPICKJuly 13, 2013 at 9:57 AM

      I believe ,Britannia is a company eligible to include in core portfolio

      Delete
  15. zenJuly 12, 2013 at 7:09 PM

    dear valuepick sir, whats happening in marksans pharma? continuous upper circuit? is it fundamentally so strong?
    thanks in advance
    senthil

    ReplyDelete
    Replies
    1. VALUEPICKJuly 13, 2013 at 9:58 AM

      Positive changes are happening in the company .Sharp re-rating is common in any company at the time of turn around.

      Delete
  16. AnonymousJuly 29, 2013 at 1:32 PM

    Dear sir,

    Can i buy marksans pharma @ current level ( as on today ) please suggest.

    ReplyDelete
  17. SivaAugust 15, 2013 at 9:42 AM

    hi sir .. can v buy basf india at the current 524 levels ..

    ReplyDelete

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