Stock in green as the company plans to enter EV battery segment

With a market capitalization of ₹ 5,541 crores, Himadri Speciality Chemical Ltd. shares surged 3 % on Wednesday to reach an intraday high of ₹ 129.20 apiece from the previous close price of ₹ 125.50.

This followed after the company acquired a 12.8% stake in Australian firm Sicona Battery Technologies (Sicona) for $10.32 million (Rs 58 crore).

Sicona specializes in lithium-ion battery high-capacity silicon anode technology. Himadri’s collaboration with Sicona Technology will help the firm to gain orders from battery manufacturers, and the company can cater to about 250 GWH (gigawatt hours) of cell manufacturing in India by 2030. As a result, the investment will accelerate Sicona’s development of unique products and technology, enabling it to support global battery clients.

Himadri Chemicals & Industries Ltd (HCIL) manufactures coal tar by-products and their derivatives. It is India’s leading coal pitch producer and the country’s only manufacturer of complex carbon material. It is a major player in Naphthalene and SNF in India. The acquisition comes as the company plans to enter the EV battery segment.

As per the company’s financials, its net profit increased by 23 % to Rs 1,028 crore in Q4FY23 from Rs 833 crore in Q4FY22. Further, revenue from operations increased by 944 % to Rs 76 crore from a loss of Rs 9 crore in the corresponding quarter last year.

On a YoY comparison of the metrics, the revenues significantly improved from ₹ 2,791 crores during FY 21-22 to ₹ 4,171 crores in FY 22-23. The PAT numbers have shifted upwards within the same timeframe, from ₹ 39 crores to 215 crores.

Profitability ratios have improved in recent years. The ROE has increased from 2.19 percent in FY 21-22 to 9.47 percent in FY 22-23, while ROCE has increased from 5.57 percent to 15.48 percent during the same time period, and the debt-equity ratio is 0.37.

In the previous three months, the stock rose from ₹ 83.50 to current levels with a return of 53.35 percent, and in the last year, the stock has gained from ₹ 67.05 to current levels with a return of 90.98 percent.

According to the latest shareholding pattern, promoters of the company hold a 45.62 percent stake, and Foreign institutional investors (FIIs) hold a 2.36 percent stake in the company for FY 22-23

Written by Omkar C

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