1. At a Glance
From coal tar pitch to lithium-ion battery materials, Himadri is building India’s carbon-based answer to China’s chemical dominance. With 22% ROCE, a 22% profit CAGR, and a stock that’s tripled in 3 years, this company is anything but boring black powder.
2. Introduction with Hook
What do tyres, graphite electrodes, aluminum smelters, and your fancy EV battery have in common? Answer: Himadri Speciality Chemical is quietly behind them all.
- India’s No.1 coal tar pitch player
- Largest naphthalene and SNF manufacturer
- One of the only Indian companies producing advanced carbon materials for Li-ion batteries
In short: they sell shovels in every industrial gold rush.
3. Business Model (WTF Do They Even Do?)
Himadri isn’t just a carbon chemical company—it’s a compounder of industrial necessity.
Core Segments:
- Coal Tar Pitch: 50%+ of domestic demand
- Carbon Black: Used in tires, paints, plastics
- Naphthalene Derivatives: Pesticides, plastics, pharma
- SNF (Sulphonated Naphthalene Formaldehyde): Construction chemicals
- Advanced Carbon Material: EV batteries, defense
Global Reach:
Serves 49+ countries; exports ~25–30% of revenues
4. Financials Overview
| Year | Revenue (₹ Cr) | EBITDA Margin | Net Profit (₹ Cr) | EPS (₹) | ROCE (%) |
|---|---|---|---|---|---|
| FY20 | 1,806 | 16% | 205 | 4.91 | 11% |
| FY22 | 2,791 | 6% | 39 | 0.98 | 5% |
| FY24 | 4,185 | 15% | 411 | 8.34 | 19% |
| FY25 | 4,613 | 19% | 555 | 11.25 | 22% |
Takeaway:
- OPM has tripled in 3 years
- Profit has grown 14x since FY22
- Return ratios are now Michelin star-level
5. Valuation
Current P/E: 46x. Sounds expensive? Depends.
Fair Value Range:
- P/E-based: 35–45x FY26E EPS of ₹13 → ₹455 to ₹585
- EV/EBITDA-based: 18–20x FY26 EBITDA of ~₹1,000 Cr → ₹500–₹600
- PEG Ratio: ~1.0 = fair for a fast grower
⚠️ But beware: chemical cyclicality is real. And Himadri isn’t immune to China dumping or raw material shocks.
6. What’s Cooking – News, Triggers, Drama
- 🚀 Battery Business Buzz: Building plant for lithium-ion battery materials
- 🏆 Golden Peacock Award: Because even chemicals can be sexy if they’re made safely
- 💵 Issued ₹200 Cr commercial paper at 6.3% (cheap capital to fund growth)
- 👀 Volume Spike in June: Clarified no insider drama—just investor FOMO
- 🧪 Carbon Specialty Export Orders rising thanks to global EV push
7. Balance Sheet
| Particulars (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | 43 | 49 | 49 |
| Reserves | 2,237 | 2,996 | 3,672 |
| Borrowings | 842 | 605 | 313 |
| Fixed Assets | 1,515 | 1,534 | 1,605 |
| Total Assets | 3,678 | 4,449 | 4,656 |
TL;DR:
Debt has halved in 2 years. Net debt nearing zero. Expansion funded largely through cash flows.
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY22 | ₹331 | ₹-28 | ₹-182 | ₹121 |
| FY23 | ₹54 | ₹-397 | ₹377 | ₹34 |
| FY24 | ₹405 | ₹-405 | ₹7 | ₹7 |
| FY25 | ₹447 | ₹-235 | ₹-271 | ₹-60 |
Summary:
- Massive capex in FY23-FY25
- Still throwing ₹400+ Cr from core ops = financially solid
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE (%) | 13% | 19% | 22% |
| ROE (%) | 9.6% | 14% | 16.4% |
| OPM (%) | 10% | 15% | 19% |
| Debtor Days | 44 | 57 | 50 |
| CCC (Days) | 66 | 73 | 90 |
Verdict:
The company went from boring to baller. Efficiency ratios getting tighter, margins expanding like Elon’s Mars plans.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT | EPS |
|---|---|---|---|---|
| FY22 | ₹2,791 Cr | ₹156 Cr | ₹39 Cr | ₹0.98 |
| FY23 | ₹4,172 Cr | ₹399 Cr | ₹216 Cr | ₹4.99 |
| FY24 | ₹4,185 Cr | ₹645 Cr | ₹411 Cr | ₹8.34 |
| FY25 | ₹4,613 Cr | ₹854 Cr | ₹555 Cr | ₹11.25 |
Commentary:
They’ve almost doubled PAT every year since FY22. And EPS is now in double digits—finally.
11. Peer Comparison
| Company | P/E | ROCE | Sales (₹ Cr) | PAT (₹ Cr) | OPM | Mcap (₹ Cr) |
|---|---|---|---|---|---|---|
| Himadri | 46 | 22% | ₹4,613 | ₹555 | 19% | ₹25,530 |
| PCBL Chemical | 36 | 11.8% | ₹8,404 | ₹435 | 15.9% | ₹15,660 |
| Phillips Carbon | 20 | 12.5% | ₹5,894 | ₹300 | 11% | ₹9,540 |
Himadri is leaner, more profitable, and trades at a premium for a reason: specialty chemistry + EV future.
12. Miscellaneous – Shareholding, Promoters
| Shareholder | Jun ’22 | Mar ’24 | Mar ’25 |
|---|---|---|---|
| Promoters | 45.39% | 50.29% | 51.61% |
| FIIs | 1.61% | 5.13% | 5.38% |
| DIIs | 0.00% | 2.12% | 4.62% |
| Public | 53.00% | 42.47% | 38.38% |
Signal:
Rising DII + FII + Promoter holding = rocket fuel. Retail is slowly offloading to institutions. Smart money sees what’s coming.
13. EduInvesting Verdict™
Himadri started as a coal tar company. Today it’s the stealth backbone of everything from aluminum smelting to EV batteries. With expanding margins, deleveraged balance sheet, and a battery material roadmap—this could be India’s breakout carbon-tech story.
But valuation isn’t for the faint-hearted. If it keeps executing, it just might justify that 46x P/E.
As we say in chemical investing: the blacker the pitch, the clearer the profits.
Metadata
Written by EduInvesting Research | 14 July 2025
Tags: speciality chemicals, carbon black, EV materials, battery supply chain, lithium-ion, coal tar pitch, smallcap stocks, india manufacturing, capex stories
