Is BASF India overvalued or undervalued?

As of 21 May 2025, BASF India's valuation grade has moved from expensive to attractive, indicating a shift in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 45.64, an EV to EBITDA of 28.40, and a ROCE of 17.95%.
In comparison to its peers, BASF India stands out with a higher PE ratio than UPL, which has a PE of 38.74, while Bayer CropScience is at 43.48. Despite the high valuation ratios, BASF's PEG ratio is notably at 0.00, suggesting potential for growth relative to its price. Over the past year, BASF India has outperformed the Sensex with a return of 16.21% compared to the Sensex's 7.57%, reinforcing its attractive valuation amidst the specialty chemicals sector.