Jayckieed’s Column     

Published: Apr 30, 2023
Updated: Apr 30, 2023

HIMADRI SPECIALTY CHEMICALS (HSCL)

Leader in speciality carbon products

Incorporated in 1987, Himadri Speciality Chemicals Ltd is an undistputed market leader and a prominent player in multiple speciality carbon product segments like Coal Tar Pitch, Carbon Black, Naphthalene and Refined Naphthalene, SNF and Specialty Oils. As one of the most integrated specialty carbon corporations globally, HSCL has built and introduced several innovative products during the 30+ years of its industry presence – catering a diverse range of new-age industries like steel, aluminium, plastic, infrastructure development, automotive and many more.

On a face value of Re 1, the company has declared a 25% dividend (Re 0.25) per share.

The company’s emphasis on operational effectiveness and cost management was one of the main factors contributing to its outstanding financial success.

This is just an indication of the bright future the company is entering now. With 30+ years of expertise, Himadri Specialty Chemicals has a promising outlook for the following three to five years. Its main priorities right now are growing its product line and breaking into new markets. The market for anode materials for lithium-ion batteries, which is anticipated to expand quickly as a result of the rising demand for electric vehicles, is where the company intends to make its entry. Additionally, it has a contract in place with an Australian business for the supply of premium coal, allowing it to diversify its product line.

On technical charts: The HSCL price has done a good rounded bottom with cup and handle pattern formation. On April 28, 2022, the CMP was Rs 101-104 and we project the company’s stock price to reach targets of Rs 145-180 in 18 months.

New and innovative products and a strong R&D focus will pave the way ahead for Himadri in the next 5-7 years…

Our Strategy: Buy near Rs 100-108 and book 50% at 180 levels and ride the free 50% shares in the long run. The company may prove to be a multibagger in the next 3-5 years.