I could not find a thread on BASF that is why I am posting
it here.

BASF globally targeting a sale of USD 100 billion
till 2020 with a growth rate of 2 to 3%.Say by 2020 India
becomes third/fourth largest economy and considering 5%
sales come from India,BASF INDIA would do a sale of USD 5 billion.
Presently roughly market cap/annual sales ratio is 0.8
If we apply same ratio the market cap could be usd 4 bln
which would be roughly 18000 cr
Present market cap is 2500 cr.

These are just numbers.Fundamentally company is shifting
focuss from commodity player to actual end supplier to
consumer through aquisitions.Operates in some of very
high growth areas like eng plastics,Solar molecules,new
construction chemicals and agrochems.R & D activities
of the company can be game changer in some of the areas
it operates.
I have not invested here but Iam just putting the stock
for discussion.

Edited by koolvalue - 20/Aug/2011 at 9:03pm

Smarar, Are you saying the value of the firm reduced post merger?

Companies like BASF,Bayer,DOW,Monsanto spend a lot of money in
R&D.In technology existing product cycles are very short
and new technology is always in corridor.Chemical business
on the contrary works on long product cycles.

Most of molecules(specially agrochem) presently used in
India were launched by these firms 50 to 60 years back.These molecules will be banned now world wide as they
are not environment friendly(again govts depending on taxes
paid by these companies decide that).New molecules wiil
definately will be launched in Indian markets also.None
of Indian company is geared for this challange.

Not only that nanotechnology applications in solar molecules will really question the way power is prodused
presently.BASF is one of the pioneer in this field.

Engineering plastics are really replacing metals in
most applications in a big way.

Most of these statements are forward looking.But that is
the way stock market works.Now only thing remains that
how do we find conviction to invest in these gems.

Presently I am not invested in this stock but hope that
as more and more senior members post their views my conviction will build and I will be able to make decision.

Originally posted by rapidriser The Ciba division taken over by BASF is a low margin business with all the characteristics of a commodity business. It is a part of the worldwide process of consolidation amongst the big chemical cos as they try to cut costs to stave off competition from Chinese & Indian cos.