This Chemical Stock is on Fire – 106% Profit Growth in 3 Years & a Rs 4,800 Crore US Expansion!
A dominant player in lithium-ion batteries and carbon black sets up shop in America.
Himadri Speciality Chemical Limited has incorporated a wholly owned subsidiary, Himadri Speciality Inc, in Delaware, USA. This move is part of the company’s strategy to expand its Carbon Black and Speciality Carbon Products business in the US market. The subsidiary was incorporated on February 7, 2025, with an initial capital investment of USD 10,000.
Business Expansion and Market Impact
Himadri Speciality’s entry into the US market aligns with its goal of strengthening its global presence. The company is India’s leading coal tar pitch manufacturer and a key player in battery materials, carbon black, and speciality chemicals. Its expansion into the US will enhance its reach in industries like lithium-ion batteries, tires, and construction chemicals.
Product Portfolio and Clientele
Himadri Speciality caters to multiple industries with products such as coal tar pitch, carbon black, naphthalene, and speciality oils. It serves major clients, including CEAT, Vedanta, Apollo Tyres, Pidilite, NALCO, and Graphite India. The new subsidiary will help the company cater to the increasing demand for carbon materials in the US.
Ongoing Capex and Growth Plans
The company is investing Rs 4,800 crore to establish a lithium-ion battery component manufacturing facility, with a total capacity of 2,00,000 MTPA, phased over FY25-FY30. Additionally, it is expanding its speciality carbon black capacity by 70,000 MTPA at a capex of Rs 220 crore, expected to be operational by Q3 FY26.
Stock Valuation and Performance
Himadri Speciality has a market capitalization of Rs 22,053 crore, trading at a P/E ratio of 42.9, higher than the industry average of 30.5. The company has a return on capital employed (ROCE) of 18.8 per cent and a return on equity (ROE) of 15.4 per cent. Its sales have grown by 35.6 per cent over the past three years, while profit has surged by 106 per cent. The stock has delivered a 30.79 per cent return in the last year.
Disclaimer: The article is for informational purposes only and not investment advice.