Himadri Speciality Chemical Ltd (HSCL) - Fundamental and Technical View
Company Overview:
Himadri Speciality Chemical Ltd. (HSCL) is an India-headquartered specialty carbon and new‑energy materials company focused on coal‑tar derivatives, carbon black, specialty oils, naphthalene derivatives, SNF/PCE, and battery materials (anode and LFP cathode). It serves various industries, such as lithium-ion batteries, paints, plastics, tires, aluminum, graphite electrodes, agrochemicals, defense, and construction chemicals.
Founder: Anurag Choudhary
Founded In: 1987
Market Cap: Large Cap with Mkt Cap Rs. 22681(Cr.)
Website: www.himadri.com
Sector: Specialty Chemicals / Carbon & Advanced Materials
Fundamental Analysis:
- Himadri Speciality Chemical (HSCL) looks like a structurally strong, growth‑oriented business with improving profitability and balance sheet, but the stock is already pricing in a lot of that strength, so valuations are on the expensive side versus its own history though not extreme versus peers.
Over the last few years, revenue and EBITDA have shown a solid uptrend, with net profit rising sharply in the past three years and ROCE in the high‑teens to around 20%, indicating efficient use of capital.
Key profitability metrics are healthy: recent profit margin is around the mid‑teens, ROE in the mid‑teens, and ROA around 10–11%, while debt‑to‑equity has dropped to roughly 0.2, reflecting a comfortable balance sheet and reduced financial risk.
Technical View:
A positive trend reversal has been found on the chart with good volume. According to the price action, a morning star candlestick pattern is identified at the bottom of the chart. There is a 61% Fib retracement, which is healthy, plus bullish divergences. so my suggestion would be the buying price is ₹443-449, and the stop-loss is set at ₹436 on a closing basis. The first target would be ₹ 464, and the second target would be ₹ 484. Once it has achieved both targets, then the next target would be 516. This chart expects positive movement for the medium-term and long-term.
Disclaimer: Only for educational purposes no recommendation, before taking the entry please take advice of your financial advisor.