InvestorQ : What is the future of basf? Why a company making a eps of just 10rs per year is valued at 1400rs/sh? The company recently made a high of 1875 but I dnot see a reason for it,am I missing something?
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What is the future of basf? Why a company making a eps of just 10rs per year is valued at 1400rs/sh? The company recently made a high of 1875 but I dnot see a reason for it,am I missing something?

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Mitali Bhutta answered.
6 days ago


BASF india PE may not be very indicative as it is a company that is just about turning around its performance. It had almost reported losses in the last 2 years but turned back to profit in 2020 as the demand for specialty chemicals picked up.

Apart from its agrochemicals business, its specialty chemicals catering to packaging and construction are also doing very well. That has helped the performance of BASF. The high P/E is in the hope that price will catch. It has sustained high valuations for years.