**BASF India Reports 26.1% Decline in Q3 Profit Amid Rising Input Costs**
BASF India, a chemicals manufacturer, announced a 26.1% decrease in its third-quarter profit on Tuesday, impacted by increased input costs despite strong demand. The profit for the three months ending December 31, 2024, fell to 1.04 billion rupees ($11.95 million), down from 1.4 billion rupees in the same period last year. The company experienced a 15% rise in total expenses, primarily due to a 7.9% increase in raw material costs. Additionally, BASF India revealed plans to close a turbo tube dryer unit at its Dahej facility in western India, citing outdated technology, low utilization, and high maintenance costs as reasons for the decision. This closure, anticipated in the first half of the year, is expected to yield fixed cost savings with minimal impact on earnings, as the unit accounted for only 0.3% of total revenue in 2024.
Analysts are optimistic about the future of India’s agrochemical sector, predicting growth in 2025 as the industry recovers from a period of global destocking that had pressured margins through reduced sales, declining prices, and inventory losses. However, some companies continue to feel the residual effects. BASF India’s materials segment, which includes performance materials and monomers for transportation, appliances, and footwear, reported a 13.9% increase in revenue, while the agriculture solutions segment, encompassing insecticides and herbicides, saw a 25.2% growth.
**Peer Comparison: Valuation Estimates**
| Company | PE | EV/EBITDA | Revenue Growth (%) | Profit Growth (%) | Analyst Rating | Mean Target Price | Dividend Yield (%) |
|—————————-|——-|———–|——————–|——————-|—————-|——————-|———————|
| BASF India | 21.48 | 13.73 | 9.79 | 22.46 | Hold | 0.74 | 0.35 |
| Coromandel International | 25.40 | 16.60 | 8.75 | -0.42 | Buy | 0.91 | 0.41 |
| Deepak Fertilisers and Petrochemicals | 13.99 | 7.87 | 11.35 | 24.17 | Buy | 0.79 | 0.75 |
| SRF | 51.67 | 26.87 | 14.94 | 40.59 | Hold | 1.14 | 0.29 |
*Analyst ratings are standardized on a scale from Strong Buy to Strong Sell. The price target ratio indicates whether the stock is trading above or below analysts’ mean price target.*