The shares of Himadri Speciality Chemicals Limited delivered mind-boggling returns in the last five days as the shares surged by 44.91% in the past week. The promoters of the company have reported to the stock exchange that they have entered into a Family Settlement Agreement under which the BLC Family and they are going to cease to hold any management rights. The chemical company’s stock price increased aggressively soon after this.
“Over the weekend, a special announcement regarding the company’s entry into the family settlement agreement has been made, which is likely to propel the stock prices higher. BLC Family, comprising Bankey Lal Choudhary, Vijay Kumar Choudhary & Tushar Choudhary, ceases to hold any right in the management and/or control of the company and has also submitted a request/application under Regulation 31A of SEBI Listing Regulations to re-classify themselves from promoter & promoter group to public category. Pursuant to the realignment, the SSC Family, led by Anurag Choudhary as its Managing Director & CEO, will continue to manage and control the company, ” according to a Dalal Street Report.
Its shares are currently trading at ₹ 89.80 levels. This windfall gain has happened on the back of heavy volumes. At 11:57 AM 1,51,18,209 shares had changed hands on the National Stock Exchange. However, it is important to note that it has given good returns in the past years, on a consistent basis. It is a small-cap company with a market capitalization of ₹ 3,753 crores.
As per year-to-date data, the stock has outperformed the market, as it delivered 97.25% returns. Its share price surged from ₹45.50 at the beginning of the year to the current levels.
If an investor would have invested ₹ 1,00,000 in the shares of the company at the beginning of the year, the value of their holdings would have been ₹ 1,97,250 today.
Himadri Speciality Chemicals Limited is engaged in the manufacturing of carbon materials and chemicals. It has operations in India and caters to domestic as well as international markets. The company has a strong market position in the coal tar pitch and carbon black businesses.
Due to the current surge of coronavirus (COVID-19) in China, preparation of the results of Shandong Dawn Himadri Chemical Industry Ltd, situated in China has not been completed despite the company taking adequate steps within its control,” HSCL had said in an exchange filing on May 24, 2022. The company sought an extension of time till July 15, 2022, for submission of the financial results.
However, for the nine months ended December 2021 (9MFY22), its consolidated net profit almost halved to ₹ 24.46 crore from ₹ 47.27 crores in 9MFY21 due to weak operational performance. The company’s revenue from operations declined 34 per cent to ₹1,114 crores from ₹1,679 crores. An increase in commodity prices had impacted its profitability. The company is expected to renegotiate its supply contracts with certain key customers. This might improve the profitability going forward.
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