Stock analysis - Himadri Speciality Chemical Ltd

Dec 30, 2024

Himadri Speciality Chemical is primarily engaged in the manufacturing of carbon materials and chemicals. It is the No.1 coal pitch manufacturer in India and is the only company to manufacture advanced carbon material in India. It is also the largest player of Naphthalene and SNF in India.

Product Portfolio

The company is a key player across various product segments, including battery materials, coal tar pitch, carbon black, naphthalene, refined naphthalene, SNF, and specialty oils. It serves a diverse range of industries, such as lithium-ion batteries, paints, plastics, tires, aluminum, graphite electrodes, agrochemicals, defense, and construction chemicals.

Fundamental analysis

Comoany have registered highest Ever sales with OPM% of solid 16% highest in last 4 year.

EPS are at highest ever.

Expanding its production capacity with current year CWIP of 105 cr.

Debt is reducing , current Debt to Equity stand as low as 0.10.

ROCE is 19% , highest in last 4 years.

Promoter and institution investor have increased their share holding in recent quaters.

Cons

Stock is trading at 8.52 times its book value and PE of 60.3.


Technical analysis

After taking support from fib.50% level , formed a cup and handle and given breakout with increasing volume , shows bullish momentum with potential to cross all time high in long run.

Apr 2, 2025

Trade active

if anyone holding, then one may consider to add more quantity to average with target of all time high.

May 6

Note

More than 50% return in 13 months, those who had added qty in apr 2 can plan to sell half qty as target 1 reached and keep rest and exit at target 2 which is very close. hope you guys enjoyed it.

Jun 7

Trade closed: target reached

Target done guys, hope you had good ride in this market conditions.