Multibagger stock to buy: Motilal Oswal sees 37% upside in Himadri Speciality Chemical; key triggers, target price
Mint · A Ksheerasagar ·
Motilal Oswal maintained its Buy rating on Himadri Speciality Chemical, with a target price of ₹780, implying about 37% upside from Friday’s close. The brokerage cited growth potential in battery materials, specialty carbon products and tyre manufacturing.
Domestic brokerage firm Motilal Oswal has maintained its ‘Buy’ rating on Himadri Speciality Chemical, setting a target price of ₹780 per share. This implies an upside potential of around 37% from the stock’s Friday closing price of ₹568.The brokerage's bullish outlook is supported by several growth drivers, including China+1 sourcing opportunities, the One Big Beautiful Bill Act (OBBBA), India's expanding cell manufacturing capacity and rising global adoption of lithium iron phosphate (LFP) batteries.Motilal Oswal believes Himadri is positioning itself to benefit from the growing demand for battery materials and higher-value specialty carbon products, while its expansion into tyre manufacturing through the acquisition of Birla Tyres offers additional opportunities for business integration and value addition.Battery materials emerge as a key growth driverHimadri is expanding into the lithium-ion battery materials business through LFP cathode active materials and anode materials. The company aims to scale its LFP cathode capacity from 2,000 metric tonnes per annum (MTPA) in the third quarter of FY27 to 40,000 MTPA by FY28, involving a capital expenditure of around ₹1,125 crore.It is also developing anode materials through a 200 MTPA pilot facility, backed by an investment of approximately ₹120 crore. The company is building capabilities through an exclusive technology partnership with Sicona for silicon-carbon anode materials, a 19.44% stake in IBC and a 40% stake in Invati Creations.According to Motilal Oswal, India's cell manufacturing capacity is expected to increase by around 178 GWh over the next five years, taking the country's total capacity to nearly 181 GWh. This could create a battery materials opportunity worth approximately $7 billion.Himadri is targeting around $3 billion in battery chemicals revenue over the next six years, implying a potential 2% share of the estimated $193 billion global market by FY35. Battery chemicals are expected to contribute around 15% of the company's revenue by FY30, the brokerage noted.Birla Tyres acquisition and specialty carbon expansion
Beyond battery materials, Himadri is leveraging its leadership in coal tar pitch (CTP) and integrated carbon platform to expand into higher-value segments, including specialty carbon black, carbon nanotubes (CNTs), super specialty carbon black (SSCB), and downstream specialty chemicals.
The company has around 300,000 MTPA of CTP capacity, sufficient to cater to nearly 80% of domestic demand. Its specialty carbon black capacity doubled to 130,000 MTPA in FY26, alongside 120,000 MTPA of standard carbon black capacity. Additional capacities of 200 MTPA for CNTs and 6,000 MTPA for SSCB are aimed at catering to growing demand from electric vehicles, electronics and energy storage.Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.