Is BASF India overvalued or undervalued?

As of 1 October 2025, BASF India has moved from an attractive to a fair valuation grade. The company is currently fairly valued, with a PE ratio of 48.72, a Price to Book Value of 5.46, and an EV to EBITDA ratio of 29.14. Compared to its peers, UPL is attractive with a PE of 37.18, while Bayer CropScience is considered expensive with a PE of 37.39, highlighting BASF India's relatively high valuation metrics within the specialty chemicals sector.
The company's recent stock performance has been underwhelming, with a year-to-date return of -17.57%, contrasting with the Sensex's positive return of 3.64% during the same period. This underperformance, coupled with its high valuation ratios, suggests that while BASF India is not overvalued, it is not positioned as an attractive investment opportunity at this time.