BASF INDIA earlier recommended @ Rs.510 on March 23,2011 ( Old Posting HERE). After hitting a high of Rs.770 ,now it is trading around Rs.585. This company is a 73% Subsidiary of worlds largest chemical company BASF SE (Baden Aniline and Soda Factory) of Germany. User Industries of BASF products can be broadly classified into five - Chemicals,Plastics,Performance Products,Functional Solutions and Agricultural Solutions.Now a days many MNC parents are less interested in the growth of their listed companies in India and trying to push the business through their unlisted outfits.Some of them even de-merged the high profit-high margin products divisions from the listed firms and merge the same with their privately owned companies operating in India.BASF is an exemption and few years back they merged their entire Indian operating companies - BASF Coatings (India) Private Limited, BASF Construction Chemicals (India) Private Limited and BASF Polyurethanes India Limited with BASF India Limited- into this listed entity.Now company is working on a massive capacity expansion with a new new project at Dahej with an estimated cost of Rs.1000 Cr.This is BASF's single largest investment in India.This new facility will significantly increase company's production capacity and part of this will be utilised to meet overseas demand .Production from this new facility is expected to start from the first half of 2014.For the latest March quarter ,BASF reported a jump of 70% in its net profit and declared a dividend of 40% .Due to parent company's increasing commitment to BASF India ,addition of massive PRODUCTION capacity ,support and availability of technology from the world leader , possibility of revival chances in Indian Economy ..etc , I believe this is the right time to include BASF India in the core portfolio of any long term Investor @ CMP Rs.550/-
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