1. At a Glance
From coal tar to carbon black to EV batteries—Himadri Speciality Chemical (HSCL) is basically the chemical industry’s version of that overachieving cousin who aces engineering, starts a startup, and still plays the guitar at family weddings. With ₹4,531 Cr sales, ₹615 Cr PAT, and a 20% OPM, Himadri is India’s No.1 coal tar pitch producer, the largest naphthalene player, and the only local manufacturer of advanced carbon material. In FY25, volumes jumped to 5.52 lakh MT, making them the heavyweight in every segment from tyres to lithium-ion batteries.
2. Introduction
In the 1990s, Himadri was just another carbon pitch maker. Fast forward three decades and the company is now flirting with cutting-edge battery materials while still supplying every major tyre and aluminium giant. That’s like your local chaiwala suddenly opening a Starbucks franchise while keeping his street stall.
Their client list reads like an industrial roll call: Apollo Tyres, MRF, CEAT, Vedanta, Graphite India, and even EV innovators. They’ve also gone global—exporting to 54 countries—and local, with 7 Indian plants plus one in China.
The magic trick? Riding multiple waves at once:
- Old economy (steel, aluminium, tyres).
- New economy (EV batteries, recycling, carbon nanomaterials).
- Specialty chemicals (anthraquinone, SNF, high-value derivatives).
FY22–FY25 revenue grew 65% with volumes up 48%. They claim to be the first outside China building an LFP cathode plant. Investors love the story—hence a market cap of ₹23,263 Cr, P/E of 37.8, and “EV-hype premium” slapped on.
3. Business Model (WTF Do They Even Do?)
If you’re confused about what Himadri does, welcome to the club. Think of them as an industrial buffet—everything dark, sticky, and carbon-rich is on the menu.
- Coal Tar Pitch: Used in aluminium smelters and graphite electrodes. Himadri owns this space in India.
- Carbon Black: Commodity + specialty grades, used in tyres, paints, plastics. Fancy names like ONYX and KLAREX make it sound like skincare.
- SNF & PCE: Chemicals used in construction, reducing water usage in cement. Concrete just got chemical Botox.
- Naphthalene & Oils: Supplying everyone from agrochemicals to defense.
- Battery Materials: LFP cathodes and anodes (synthetic, natural, even silicon). The new kid on the block.
- Specialty Products: Anthraquinone, carbazole, fluorene derivatives.
- High-margin, low-competition.
Core strategy = milk the old, build the new.
4. Financials Overview
Quarterly Snapshot (Q1 FY26 vs Q1 FY25 & Q4 FY25):
| Metric | Latest Qtr (Jun’25) | YoY Qtr (Jun’24) | Prev Qtr (Mar’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 1,118 | 1,200 | 1,135 | -6.8% | -1.5% |
| EBITDA (₹ Cr) | 245 | 192 | 233 | 27.6% | 5.2% |
| PAT (₹ Cr) | 182 | 123 | 155 | 48.0% | 17.4% |
| EPS (₹) | 3.68 | 2.48 | 3.15 | 48.4% | 16.8% |
Commentary: Topline dipped, but margins partied hard—EBITDA margin at 22%. PAT jumped 48% YoY, showing pricing power and specialty mix. EPS annualized ~₹15, giving recalculated P/E ~31 at CMP ₹471 (better than the default 37.8 shown).
5. Valuation (Fair Value RANGE only)
Method 1: P/E Multiple
- EPS (TTM) = ₹12.4
- Assigning fair multiple 25–30 (chemical peers trade lower) → FV = ₹310 – ₹370
Method 2: EV/EBITDA
- EV = ₹22,904 Cr
- EBITDA (TTM) = ₹907 Cr
- EV/EBITDA = 25.2
- Fair band 15–18 → FV = ₹350 – ₹420
Method 3: DCF (Simplified)
- CFO avg last 3 yrs ~₹400 Cr; assume 15% growth, discount 12% → FV = ₹400 – ₹500
👉Fair Value Range (Educational Only):₹350 – ₹500CMP ₹471 sits at the upper end—priced for both coal tar realism and EV fantasy.
6. What’s Cooking – News, Triggers, Drama
- Carbon Black Expansion: ₹220 Cr project → 2.5 lakh MTPA by FY26. This makes Himadri the 4th largest globally.
- Specialty Products Facility:
