Motilal Oswal sees 37% upside for Himadri Speciality Chemical
Motilal Oswal has kept its Buy rating on Himadri Speciality Chemical and set a target price of ₹780 per share, indicating roughly a 37% upside from the Friday close of ₹568. The brokerage points to multiple growth catalysts, including China+1 sourcing, the One Big Beautiful Bill Act, expanding Indian cell manufacturing capacity and rising global use of lithium-iron-phosphate (LFP) batteries.
Himadri is scaling its LFP cathode capacity from 2,000 MTPA in Q3 FY27 to 40,000 MTPA by FY28, backed by about ₹1,125 crore of capex. A 200 MTPA pilot anode facility, supported by roughly ₹120 crore, will develop silicon-carbon anodes through a technology partnership with Sicona, alongside stakes of 19.44% in IBC and 40% in Invati Creations. The firm also plans to generate around $3 billion in battery-chemical revenue over six years, targeting a 2% share of the projected $193 billion global market by FY35.
Beyond batteries, Himadri leverages its coal-tar-pitch platform to expand into specialty carbon black, carbon nanotubes, super-specialty carbon black and downstream specialty chemicals. It operates about 300,000 MTPA of CTP capacity, covering nearly 80% of domestic demand, and has doubled specialty carbon black capacity to 130,000 MTPA in FY26. Additional capacities of 200 MTPA for CNTs and 6,000 MTPA for SSCB aim to serve electric-vehicle, electronics and energy-storage markets.
The acquisition of Birla Tyres adds a tyre-manufacturing segment, offering potential integration with its battery-material business and further diversification of revenue streams.
Why it matters
The rating highlights a sizable upside for investors seeking exposure to India's fast-growing battery-materials sector.
FAQ
What target price did Motilal Oswal set for Himadri Speciality Chemical?
₹780 per share.
What upside potential does the target price represent from the recent closing price?
Around 37% from the Friday closing price of ₹568.
What are the key growth drivers cited by Motilal Oswal?
China+1 sourcing, the One Big Beautiful Bill Act, India's expanding cell manufacturing capacity and rising global adoption of LFP batteries.
What capacity expansion is planned for LFP cathodes by FY28?
Scaling from 2,000 MTPA to 40,000 MTPA.
Source: Mint Markets. See the original source for full details.
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