Is BASF India overvalued or undervalued?

As of 13 October 2025, BASF India's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, especially when considering its current PE ratio of 47.82, an EV to EBITDA of 28.57, and a ROCE of 20.00%. In comparison to peers, UPL has a PE of 37.82 and an EV to EBITDA of 9.12, while Bayer CropScience shows a PE of 37.94 and an EV to EBITDA of 29.80, suggesting that BASF India is trading at a premium relative to these competitors.
Despite its attractive valuation grade, BASF India has faced challenges in recent performance, with a year-to-date return of -19.11%, contrasting with a Sensex return of 5.36%. This underperformance may present a buying opportunity for investors, given the company's strong fundamentals and favorable ratios compared to its peers in the specialty chemicals industry.