The share price of the Battery company which deals in the manufacturing of carbon materials and chemicals was up by 3.7 percent on Tuesday which is due to quarterly result announcements, and capex announcements.
Share Price Movement
In Tuesday’s trading session, Himadri Speciality Chemical Ltd’s share price touched a day’s high of Rs. 565.35 which was up by 3.7 percent. The share price reiterated from the day’s high and was trading at Rs. 542.75 which is 0.42 percent lower than the previous closing price of Rs. 545.05. In the past year, the stock has delivered around 44.77 percent and has outperformed the Nifty Index in the past year.
What Happened
The company’s stock surged after it released its quarterly financials and announced a dividend and capex announcement.
In its latest filing for the quarter ending December 2024, the company reported an 8.37 percent rise in revenue, reaching Rs.1,140.66 crore compared to Rs.1,052.51 crore in Q3 FY24. On a quarter-over-quarter basis, the operational revenue rose by 0.32 percent from Rs.1,136.92 crore in Q2FY25.
During the same period, net profit increased by 29.75 percent to Rs.141.15 crore in Q3FY25, compared to Rs.108.78 crore in Q3FY24, and increased by 4.01 percent from Rs.135.70 crore in Q2FY25.
Regarding return ratios, the return on equity (ROE) stands at around 15.42 percent. The Net profit margin for FY24 stood at 9.81 percent. The company also boasts a current ratio of 1.49 and a debt-to-equity ratio of 0.27.
In Q3FY25, the company’s revenue from Carbon Materials and Chemicals contributed around 97.58, and the remaining 2.41 percent from Power.
Capital Expenditure & Acquisition Announcement
The green field project expansion in the existing units and brownfield expansion through its company and subsidiaries amounting to Rs. 256.82 crores for the production of speciality chemicals which will be funded through Internal Accruals. The expected commencement of the operations is in 18 months. The High-value-added speciality products include Anthraquinone, Carbazole & Fluorene from existing coal tar distillates.
Earlier, The company has plans to produce 2,00,000 MTPA of Lithium Iron Phosphate Cathode Active Material catering to 100 Gwh of Li-ion Battery in the 5 to 6 year phases.
The company with Dalmia Bharat Refactories has participated in Insolvency proceedings to acquire Birla Tyres through Internal accruals and debt and the acquisition cost is Rs. 306 crore. This helps to forward integrate into high-margin niche offerings and other benefits. They said it would be a strategic benefit to be a lead player in the EV space.
Company Profile
Himadri Speciality Chemical Limited, established in 1987, is a leading Indian manufacturer of carbon materials and chemicals, focusing on coal tar and its derivatives. The company operates five state-of-the-art coal tar distillation plants across India and has expanded its product portfolio to include specialty carbon black, lithium-ion battery materials, and refined naphthalene. Himadri’s business model focuses on innovation and sustainability, catering to diverse industries such as aluminum, paints, and agrochemicals. It exports to approximately 54 countries, positioning itself as a global player in the specialty chemicals market.
Shareholding Pattern
As of September 2024, the company’s promoters hold around 50.78 percent of Himadri Speciality Chemicals. Foreign Institutional Investors (FII) hold around 5.24 percent, Domestic Institutional Investors (DII) hold around 3.60 percent and the remaining 40.39 percent are held by public investors.
Written by – Santhosh S
