Himadri Speciality Chemical share price has been undergoing some correction due to profit booking at higher levels, raising speculation among investors about whether or not they should buy the dips. The stock has given healthy returns to its investors in the past despite stock market volatility.
Himadri Speciality Chemical share price trend
Over the last six months, the stock has gained 40%, compared to a 5% drop in the stock market benchmark Sensex. Over longer timeframes of three and five years, it has given returns of nearly 160% and 1,210%, respectively.
However, on a monthly scale, it is down more than 2% so far in October after a 3% rise in September.
Himadri Speciality Chemical shares hit their 52-week high of ₹819.50 on 21 July this year after dropping to their 52-week low of ₹420 on 24 November last year.
In intraday trade on Wednesday, 14 October, the stock rose by nearly 1%.
Is the recent correction an opportunity to buy?
Experts highlight that Himadri Speciality Chemicals has outlined an ambitious plan to achieve its target of doubling its profit by FY28. The company has said that it is on target to double its profit after tax (PAT) to over ₹1,100 crore by FY28.
In an investor call with analysts last week, the company said it is currently in an aggressive transformation phase, moving decisively from a traditional coal tar derivative manufacturer to a high-growth, advanced materials powerhouse.
The company plans to establish a 100 GWh materials manufacturing facility for cathode and anode materials—the two key components used in electric vehicle (EV) batteries. According to the company, the project is expected to generate an additional ₹30,000 crore in revenue over the next five years.
According to Ravi Singh, Chief Research Officer at Master Capital Services, despite trading at around 41 times P/E, the stock is nearly 20% below its all-time high. Investors may consider accumulating near ₹630, subject to their risk appetite and investment horizon.
Vinit Bolinjkar, the head of research at Ventura, underscored that Himadri Speciality Chemical is executing a strong strategic pivot from a traditional, cyclical carbon black and coal tar pitch producer into a high-margin speciality chemical player centred on EV battery materials like synthetic anode precursors.
“Fundamentals remain robust, as solid cash flows from its base business support high operating margins (nearly 19–21%) and an attractive return profile (ROCE above 20%),” said Bolinjkar.
“For existing investors, holding the stock allows exposure to the multi-year commercialisation of its battery components, though quarterly progress on execution should be watched closely. Prospective buyers should adopt a disciplined, staggered buying approach during market pullbacks to lower valuation risk,” said Bolinjkar.
Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.