Buy Himadri Speciality Chemical; target of Rs 165: KR Choksey

KR Choksey bullish on Himadri Speciality Chemical has recommended buy rating on the stock with a target price of Rs 165 in its research report dated August 16, 2018.

Broker Research

September 18, 2018 / 13:26 IST

26 Aug, 2025 12:21

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KR Choksey's research report on Himadri Speciality Chemical

The Company reported net sales at INR 6047 mn as against our estimates of INR 5733 mn; which grew by 34% YoY and 10% QoQ. Better realizations under Specialty Carbon Black (SCB) segment and Coal Tar Pitch (CTP) segments combined with healthy volumes aided the top line growth for the company. EBIDTA (excl. FX losses) stood at INR 1408 mn (+40% YoY; 11% QoQ). EBITDA/ton surged to INR 14,190/ton (+33% YoY; +9% QoQ). OPM came in at 23% in line with our estimates of 22.4% on the back of lower other expenses. PAT stood at INR 767 mn as against our estimates INR 748 mn (+53% YoY; +8% QoQ) with NPM at 12.7% mainly due to sustained finance costs.

Outlook

The Company trades at an EV/EBITDA of 14x. We value the company at an EV/EBITDA of 12x (implied P/E of 19x) thereby arriving at a target price of INR 165/share resulting in an upside of 20% from CMP of INR 137. We have “BUY” rating on the stock.

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