NEW DELHI: Shares of BASF India advanced over 15 per cent in morning trade after the brokerage firm Emkay Global Financial Services initiated the coverage on the stock with ‘Buy’ rating and set the 12-month target price at Rs 2,212.

Emkay Global sees 51 per cent upside in the stock against its previous close of Rs 1466 as of October 5, 2017.

“BASF India, a part of BASF SE, the largest chemicals company in the world, is well positioned to deliver solid performance on revenue and profitability front, backed by ramp-up in new capacity utilization and consolidation of niche businesses,” the brokerage house said.

The scrip was trading 12.40 per cent up at Rs 1653.35 around 11.25 am (IST). Shares of the company opened at Rs 1535 and touched a high and low of Rs 1702 and Rs 1530, respectively, in trade so far. Benchmark BSE Sensex was up 214.64 points, or 0.68 per cent, at 31,806 at around the same time.

The brokerage house believes that the thirteen new product launches in agrochemicals, and localisation of many niche products in construction, coatings, plastics and care products are likely to boost high margin.

Emkay believes BASF India can post a CAGR of 13.6 per cent and 39.1 per cent in revenue and EBITDA over FY17-20E.

The combination of a strong R&D support from the German parent and strategic India research hub to catalyse innovative products in domestic market.