Chemical Sector Check - BASF’s Manufacturing Focus Shifting Eastwards: Prabhudas Lilladher

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Prabhudas Lilladher Report.We assess BASF management commentary and its actions to improve the group’s overall growth trajectory. While BASF’s Q4CY22 performance was impacted by European gas crisis and impairments on its shareholding in Wintershall Dea AG (Russian activities ceased), shutdown of few units in Ludwigshafen (BASF’s largest site) and rightsizing employee base is more to do with improving long term competitiveness. Positive long term outlook reflects in increasing capex budget (increased to €28.8 billion for 2023-27 versus €25.5 billion in 2022-26), for which it readies a balanced global footprint with production assets close to customers in all regions. Although BASF’s current eastward shift (Asia Pacific forms ~47% of its capex budget) is focused towards China; but Europe plus one beginning to materialise will also have long term benefits for Indian manufacturers, in our view. We believe rising capex intensity augurs well for overall global chemicals sector including India, on the back of new opportunities (like battery chemicals) and newer growth centres (Asia). Domestic players’ capex outlays and timelines have also remained unchanged despite near term demand challenges..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Chemical Sector Check - BASF’s Manufacturing Focus Shifting Eastwards: Prabhudas Lilladher

We believe rising capex intensity augurs well for overall global chemicals sector including India, on back of new opportunities.

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