Shares of BASF India surged 12 per cent to hit an all-time high of Rs 3,795.45 on BSE. The stock has been gaining for the last 2 trading sessions and has risen 33 per cent on the back of strong operational performance for the quarter ended June 2021.
The midcap stock has delivered 193 per cent return to its shareholders in the last 12 months. The share stood at Rs 1,293.5 on August 10, 2020. It zoomed to Rs 3,795.45 today, translating into gains of 193 per cent during the period. In comparison, Sensex rose 43 per cent in one year.
An amount of Rs 5 lakh invested in this multibagger stock a year ago would have turned into Rs 14.67 lakh today.
With a market capitalisation of Rs 15,677 crore, the share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200-day moving averages.
The company reported a net profit of Rs 197.28 crore for the quarter ended June 2021 compared to a net loss of Rs 31.18 in the year-ago period. Revenue from operations grew 69 per cent to Rs 3,012.90 crore in the June-ended quarter against Rs 1,786.5 crore a year ago.
"BASF has provided a fresh breakout on the weekly charts with an increase in volumes indicating that the fresh uptrend has been established in it. The daily, weekly and monthly MACD is well into the buy mode indicating that the bulls have an upper hand in this stock," Jay Thakkar, VP, and Head of Equity Research, Marwadi Shares and Finance Limited told BusinessToday.In.
"The stock has been moving up in an upward sloping parallel channel as well as it has been holding well its 50DEMA which is also quite positive for the stock in the near term," he noted.
He further added that the immediate target will be the upper end of the channel which is Rs 4,400 whereas the reversal will be its 50DEMA i.e. Rs 2,702 as of today.
According to MarketsMojo, the company has declared positive results for the last 4 consecutive quarters. With an ROCE of 24.33%, it has healthy long-term growth as Operating profit has grown by an annual rate of 59.65%.
The technical trend has improved from Mildly Bullish on July 12, 2021, and the stock is technically in a Bullish range now. Multiple factors for the stock are bullish like MACD, Bollinger Band, KST, and DOW. Also, the valuation seems to be fair right now.
Recently, CRISIL Limited revised the outlook on the Rs 20 crore Non-Convertible Debenture Programme of BASF India Limited to ‘Stable’ from ‘Negative’.
"The rating on the Non-Convertible Debentures has been reaffirmed at ‘CRISIL AAA’. It may kindly be noted that instruments with a “CRISIL AAA” rating are considered to have the highest degree of safety regarding timely servicing of the financial obligations and carry the lowest credit risk," the company said.
"The ratings on the Fixed Deposits and Commercial Paper have been reaffirmed at ‘FAAA/Stable’ and ‘CRISIL A1+’, respectively," it added.
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