Shares of this EV stock jumped approximately 4 percent in Wednesday’s trading session after the company approved the setting up of a manufacturing facility for Lithium-ion battery components. In the past six months, the company’s stock has delivered multibagger returns of around 130 percent to its stakeholders.
With a market capitalization of Rs 13,229.28 crores, the stocks of Himadri Speciality Chemical Limited opened their trading hour on Wednesday at Rs 304.55 and currently trades at Rs 300.50, gaining around 4 percent as compared to the previous closing levels of Rs 290.70 apiece.
Such bullish behavior in the company’s stock was witnessed after it published a regulatory filing with the Bombay Stock Exchange (BSE) intimating about the output of the Board meeting held on 5th December 2023.
In the meeting, the Board of Directors considered and approved the setting up of the manufacturing facility for the production of Lithium-ion Battery (LiB) components. The facility is expected to have a total annual production capacity of 200,000 Metric Tonnes (MT) either directly and/or through its subsidiaries.
The project cost is estimated to be approximately Rs 4,800 crores and the company’s Board of Directors have approved to invest the same over five to six years. The investment will be made largely from internal accruals and balance, if any, from debt.
The project is likely to benefit by way of indigenization of LiB raw materials and promoting sustainability by reducing dependency on Fossil fuels.
During the recent financial quarters, the company’s prime business indicators such as the operating revenues and net profits showed positive movements. The former rose from Rs 950.91 crores during Q1FY23-24 to Rs 1,004.52 crores during Q2FY23-24, and, the latter, during the same period, shifted up from Rs 86.10 crores to Rs 100.62 crores.
Himadri Speciality Chemical Limited is a company based in India that manufactures coal tar pitch. Through its operating segments, the company serves various industries to help manufacture graphite electrodes, warhead missiles, lithium-ion batteries, etc.
Written by Amit Madnani
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