Multibagger HSCL jumps 10 per cent; registers multi-year breakout!

The relative price strength (RS) rating is as high as 87, showing outperformance compared to the broader market. In short, the stock is in a strong bull trend.

Himadri Speciality Chemical Limited (HSCL) is a leading carbon corporation and the flagship of Himadri Group, headquartered in Kolkata since 1987. Today, with its unique vertical integration, the company has earned itself an established brand name with a proven solid track record in the speciality chemical business. Himadri’s superior quality products include coal tar pitch, carbon black, naphthalene & refined naphthalene, SNF, and speciality oils, etc, which serve specific purposes across diverse industries.   

Technically, the stock has broken out of a 13-week cup pattern of Stage 2 in mid-July; however, thereafter, the stock did not see any follow-through and retested the breakout point. However, during the breakout, the stock registered massive and above-average volume. On the way down, the volumes were subdued, which indicated that is routine profit booking. However, on Friday, the stock skyrocketed by nearly 8 per cent and as a result, it registered a multi-month breakout. Earlier, it had broken out a 103-week Stage 1 base and is rallying since then in a staircase manner.   

Currently, the stock has retraced more than 38.2 per cent of the 2018-20 downtrends. It is trading above all the key moving averages. It is trading above the 40-week moving average as well as the 30-weekly average. It is also above the 10-week average. Interestingly, all the moving averages are in an uptrend. The 20-period weekly RSI, which is above 65, is in a strong bullish zone. The weekly MACD line is trading above the signal line, which is positive. The ADX is above 25, showing a strengthening uptrend while +DMI is above the ADX and -DMI. It is also trading above the Anchored VWAP resistance. The relative price strength (RS) rating is as high as 87, showing outperformance compared to the broader market. In short, the stock is in a strong bull trend. The level of 78 is strong support for the stock in the long run.   

In the last financial year, the company reduced its debt from Rs 583 crore to Rs 315 crore; so, the net debt reduction is about Rs 268 crore. The debt-to-equity stands at 0.17x.   

The stock jumped 110 per cent in the calendar year 2022 and it turned mutlibagger, while it soared a whopping 16 per cent in the last one week.