4X revenue potential of capex: Multibagger small-cap stock announced India’s first commercial plant for lithium iron phosphate with phase I capex of Rs 1,125 crore!

Aims to produce 200,000 MTPA of LFP Cathode Active Material, meeting the demand for 100 GWh of Li-ion Battery over the next 5-6 years.

In the dynamic landscape of the stock market, where indices touched new highs and witnessed profit booking from higher levels, one stock stands out amid the ebb and flow – Himadri Speciality Chemical Ltd. As the NSE benchmark Nifty 50 experienced a temporary retreat from its relentless climb, Himadri Speciality Chemical soared, marking a fresh 52-week high with a remarkable 4 per cent surge. What sets this Small-Cap stock apart is not merely its recent performance but the astounding multibagger returns of 179.21 per cent over the past year.

The driving force behind Himadri's remarkable ascent is nothing short of groundbreaking. Positioned as a global specialty chemical conglomerate, Himadri is set to revolutionize the Global LiB Industry by unveiling India’s inaugural commercial plant for Lithium Iron Phosphate (LFP) Cathode Active Material. This strategic move is not just an industry-first but a visionary step towards a future where Himadri aims to produce 200,000 MTPA of LFP Cathode Active Material, meeting the demand for 100 GWh of Li-ion Battery over the next 5-6 years.

The company's meticulous expansion plan includes Phase I, where a capacity of 40,000 MTPA will come to life at an estimated cost of Rs. 1,125 crores, operational in 27 to 36 months at Odisha. Importantly, the capital expenditure for this phase will be predominantly sourced from internal accruals, supplemented by debt financing. At full utilization of this capacity, Himadri anticipates generating a revenue that is four times the initial capital expenditure, underlining a robust profitability and returns profile.

Cathode materials, a critical component in the production of Lithium-ion cells, constitute a substantial portion of the cell cost, with LFP emerging as a prominent material in LiB Cells manufacturing. Foreseeing the escalating demand, Himadri is strategically positioned in the high-growth LiB value chain. The company's foresight is underlined by projections indicating a surge in Cathode Material demand to 9.4 million tonnes annually by 2030, aligning perfectly with the global push towards carbon-free solutions.

In essence, Himadri Speciality Chemical Ltd has not only navigated the tumultuous tides of the stock market but has strategically positioned itself as a key player in the evolving landscape of sustainable energy solutions. As industries shift towards a carbon-free revolution, Himadri's innovative approach and commitment to excellence make it a compelling prospect for investors looking to ride the wave of change in the burgeoning Li-ion Battery sector.

Disclaimer: The article is for informational purposes only and not investment advice.