Stock to buy: Brokerage firm Angel One has initiated coverage on Himadri Speciality Chemicals Ltd (HSCL) with a ‘Buy’ rating. It said that HSCL is positioned to benefit from the rising demand for advanced carbon materials and future-facing battery technologies.

The brokerage has set a target price of ₹550 on Himadri Speciality Chemicals, based on a 28× P/E multiple on projected FY28 earnings. This implies an upside of 25 per cent from the previous close of ₹440.

The target price could be achieved over a period of the next 12 months, the brokerage said in its note.

Himadri Speciality Chemicals is a constituent of the Nifty Smallcap 100 index, and the company commands a market capitalisation of more than ₹10,000 crore, according to exchange data. 
The small-cap index has seen a modest gain of around 10 per cent over the past year, while it has surged more than 50 per cent in two years. In the long term, Himadri Speciality Chemical shares have delivered remarkable returns, zooming 390 per cent in three years and an impressive 660 per cent in five years.

According to Angel One, Himadri represents a rare convergence of proven execution in legacy businesses and a high-conviction bet on India’s energy transition. The Kolkata-based company is transitioning from a traditional speciality chemical manufacturer to a key player in the energy transition ecosystem.

“The company is transitioning from a steady speciality chemical compounder to a high-growth battery materials enabler with first-mover advantage in LFP (lithium iron phosphate) cathodes and anode materials,” Angel One said.

Favourable Global Industry 

The brokerage also highlighted favourable global industry dynamics for the company’s core products. It said that the European Union’s ban on Russian carbon black imports, which has been in effect since mid-2022 and was tightened in 2025, has created a significant supply gap for a critical industrial input. 

This ban has created a 1+ million MTPA export opportunity for Indian producers, the brokerage said.

Before the ban, Russia accounted for 20–25 per cent of Europe’s 2–3 million metric tonne per annum (MTPA).

Himadri operates the world’s largest single-site carbon black facility. According to the brokerage, the facility provides scale benefits and cost efficiencies, allowing the company to produce at 10–15 per cent lower cost versus fragmented peers, supporting EBITDA margins and competitiveness in exports.  READ | Stocks to buy today: Analyst bullish on these two power shares

Focus On Battery Materials

The brokerage also pointed out that the company is growing its focus on battery materials. Himadri is expected to commission India’s first commercial LFP cathode plant in Q3 FY27 with a capacity of 40,000 tonnes per annum.

LFP cathodes are expected to generate EBITDA margins of 25–30 per cent, higher than the core business’s 20 per cent margin, it said.

The management is targeting more than 25 per cent ROCE from the battery materials segment, which looks highly plausible on an Rs 4,800 crore investment expected to generate Rs 20,000 crore lifetime revenue (4x multiplier). Additionally, the company is also in discussions with companies like Ola Electric, Reliance and Tata AutoComp for partnerships.

Further, the US-India trade agreement and announcements in the Union Budget, such as rare earth corridors and chemical parks, also augur well for the company’s growth in the medium to long term.

Founded in 1990, Himadri operates across 56 countries and is considered a pioneer in advanced carbon materials in India. It achieved net debt-free status in March 2024.

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