BASF India Invest in Low Beta Stock

BASF India has not done too well for the third quarter ended 31st Dec 2008. Net sales fell 9.75% to Rs 20,099 crore on a YoY. But the decline in net profit was sharper. It was down by a shocking 96.27% on a YoY at a meager Rs.41 lakhs. OPM was down from 9.91% to 3.22% and NPM was down to a paltry 0.205 from 4.94%. Economic slowdown & steep fall in prices since September 08 affected sales & profitability of some of the segments. Inventory increased significantly YoY to Rs.15 crore v/s Rs.61 lakhs
In September, its parent company made an open offer to acquire to acquire Ciba Holding AG, Basel, Switzerland, [CIBN], and was expected to make a public takeover offer to Ciba’s shareholders. BASF will pay CHF 50.00 in cash for each nominal share in Ciba.

On 9th March, the stock touched a new low at Rs.163. Currently quoted around the low levels, stay invested. It is one of those stocks, which are just to be held on to, not speculated upon. thanks