Multibagger stock Himadri Specialty Chemicals has been under pressure in the recent past, but experts believe the stock is ripe for a rebound due to the company’s healthy growth prospects.
According to BSE data, Himadri Specialty Chemical’s share price has surged as much as 832% over the last five years, and 393% over the last three years. However, over the last year, it has declined by about 18%.
Experts highlight that the company’s plans to enter the lithium-ion battery materials and advanced chemicals business could be a major growth driver for it.
Himadri’s business expansion plans
Himadri is India’s largest producer of coal tar derivatives and specialty carbon black.
According to an Economic Times (ET) report, the company plans to pivot into lithium-ion battery materials and advanced chemicals.
Experts say its foray into the new areas will make it India’s largest supplier to global electric vehicle and energy storage supply chains.
Himadri, which claims to be the market leader in coal tar pitch and commands an impressive 60% share, as per the ET report, said the capacity of this business is being expanded from 5 lakh metric tonnes annually to 6 lakh metric tonnes.
The company, according to the ET report, is also more than doubling the carbon black capacity to 1.30 lakh tonnes per annum from 60,000 tonnes at present. This will entail a capital expenditure of 220 crores.
Experts turn bullish on the stock
With the new forays and expansion plan, market analysts expect a sharp rise in the share price of the company. Some of them expect Himadri Specialty Chemicals shares to hit the 630 mark in FY26.
“Himadri has transformed itself from a chemical company to EV batteries and tires with the acquisition of Birla Tyres. The foray into the fast-growing replacement tire market and EVs augurs well for the company’s future”, said Rajesh Agarwal, Head- Equity Research at AUM Capital.
Independent market analyst Ambareesh Baliga expects the company’s revenues to increase substantially from its new forays and strategic investments.
“These are good triggers for the stock. Expected EPS for FY27 is 18, and my target price for Himadri Specialty Chemicals is 630,” said Baliga.
Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, noted that the stock is positioned at a major support level near its 200-DEMA, which also aligns with the rising trendline, indicating a crucial decision zone.
“A daily close above 486 may trigger a fresh up-move towards 520, while on the flip side, a daily close below this level could drag the price towards the 435 zone,” said Patel.
Himadri Specialty Chemicals, according to its annual report, achieved its highest-ever EBITDA of 844 crore and profit after tax (PAT) of 558 crore in FY25.
According to the company’s exchange filing on January 8, it will announce its December quarter (Q3FY26) results on Friday, January 16.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
