Himadri Speciality Chemical has emerged as a standout performer in the specialty chemicals sector, delivering remarkable returns despite recent market pressures. While the stock has faced headwinds in the near term, market experts believe the company's strategic expansion plans position it for a strong rebound.

Stock Performance Overview

The company's share price trajectory showcases impressive long-term growth despite recent volatility. According to BSE data, the stock has demonstrated exceptional performance across different timeframes.

Strategic Business Expansion

Himadri Speciality Chemical, India's largest producer of coal tar derivatives and specialty carbon black, is positioning itself as a major supplier to global electric vehicle and energy storage supply chains. The company's expansion strategy focuses on organic growth funded through cash flows from existing operations.

"The expansion is being done by organically expanding the current businesses and using the cash from those to invest in new businesses," stated Anurag Choudhary, chairman and managing director. The company's focus extends to specialty carbon black applications in plastics, coatings, cables, inks, and lithium-ion batteries.

Capacity Enhancement Plans

The company has outlined significant capacity expansion across its key business segments, requiring substantial capital investment.

Expert Outlook and Price Targets

Market analysts have expressed confidence in the company's growth trajectory, citing multiple positive catalysts. The company's transformation strategy and strategic acquisitions have garnered attention from research firms.

"Himadri has transformed itself from a chemical company to EV batteries and tyres with the recent acquisition of Birla Tyres, a brand which has a huge recall," noted Rajesh Agarwal, Head of Equity Research at AUM Capital. Independent analyst Ambareesh Baliga projects substantial revenue growth from new ventures, setting an expected EPS of ₹18.00 for FY27 with a target price of ₹630.00.

From a technical perspective, Jigar S. Patel from Anand Rathi identifies the stock at a crucial support level near its 200-DEMA. A daily close above ₹486.00 could trigger movement toward ₹520.00, while a break below might lead to ₹435.00.

Financial Performance Highlights

The company achieved record financial performance in FY25, demonstrating strong operational execution across its business segments.

Himadri Speciality Chemical is scheduled to announce its Q3FY26 results on January 16, which will provide further insights into the company's operational performance and progress on expansion initiatives.

Himadri Speciality Chemical has announced plans to enter the electric vehicle supply chain, with company executives stating their intent to become a supplier in the lithium-ion battery materials market. The strategic initiative aims to position the company as a non-Chinese alternative in the growing EV battery components sector.

Strategic Expansion into EV Market

The company's leadership has outlined plans to diversify beyond its traditional operations by targeting the electric vehicle supply chain. This move represents a significant strategic shift as Himadri Speciality Chemical seeks to capitalize on the expanding EV market and the increasing demand for battery materials.

Non-Chinese Supplier Positioning

A key aspect of the company's strategy involves positioning itself as a non-Chinese supplier in the lithium-ion battery materials market. This positioning could prove advantageous given the global trend toward supply chain diversification and reduced dependence on Chinese suppliers in critical technology sectors.

Core Business Expansion Plans

Alongside its planned entry into the EV battery materials market, the company has indicated intentions to expand its core business operations. This dual approach suggests a balanced growth strategy that leverages existing capabilities while exploring new market opportunities in the electric vehicle ecosystem.

The announcement reflects the company's strategic vision to participate in the transition toward electric mobility while maintaining focus on its established business segments. The timing of this initiative aligns with the growing emphasis on domestic manufacturing capabilities in the EV supply chain.

Himadri Speciality Chemical's plans to enter the lithium-ion battery materials market as a non-Chinese supplier, while simultaneously expanding its core business operations, underscore its ambition to become a player in the EV supply chain. This strategic move aims to position the company to potentially capitalize on the growing demand for diverse and reliable suppliers in the evolving electric vehicle industry.