Himadri Speciality Chemical Ltd. share price target

Building in the prevailing muted demand prospects both domestically as well as globally in its base business and delay in commissioning of new projects, we expect HSCL to clock sales, PAT CAGR of 7.0%, 14.3%, respectively, in FY20E-22E. With a decline in margin profile, return ratios matrix has reduced to ~10% RoE, which significantly limits our ability to assign a higher valuation multiple to HSCL. Consequently, we value HSCL at | 50 i.e. 10x P/E on FY22E EPS of | 5.0. We derive some comfort from consistent CFO generation with controlled leverage on B/S (debt: equity at...

Q1FY20: Revenues down by16% Y-o-Y, PAT down by 4% Y-o-Y, led by improving EBIDTA per tonne: In Q1FY20, Himadri Specialty Chemicals Ltd (HSCL) reported revenues of Rs. 524 Cr (down16% Y-o-Y, up 5% Q-o-Q)

In Q3FY19, Himadri Specialty Chemicals Ltd (HSCL) reported revenues of Rs. 587 Cr (up 17% Y-o-Y, flat Q-o-Q), EBITDA of Rs. 148 Cr (up 18% Y-o-Y, up 12% Q-o-Q) with EBITDA/MT of Rs. 15,885 vs Rs. 15,487 Q-o-Q.

Himadri Speciality Chemicals (HSCL) reported a steady performance in Q3FY19. Total revenues in Q3FY19 came in at | 586.7 crore, up 17% YoY. This was largely realisation led growth given limitations over volume growth due to the planned shutdown Carbon sales volume were at 83,571 units with consequent realisations at | 67,713/tonne. EBITDA in Q3FY19 came in at | 132.8 crore with corresponding EBITDA margins at 22.6%. Consequent EBITDA/tonne was at | 15,900 with PAT at | 84.3 crore, up 20% YoY...

In Q2FY19, Himadri Specialty Chemicals Ltd (HSCL) reported revenues of Rs. 602 Cr (up 29% Y-o-Y, flat Q-o-Q), EBITDA of Rs. 132 Cr (up 38% Y-o-Y) with EBITDA/MT of Rs. 15,487 vs Rs. 10,896 Y-o-Y (up 42%). PAT for the quarter stood at Rs. 74 cr (up 45% Y-o-Y). In H1FY19, revenue was up 31% Y-o-Y

Himadri Speciality Chemicals (HSCL) reported a steady Q2FY19 performance QoQ. Total revenues for the quarter came in at | 601.8 crore, up 29% YoY. Carbon sales volume in Q2FY19 were at 91.6 KT,...

Himadri Speciality Chemicals (HSCL) reported a robust Q1FY19 performance. Net sales in Q1FY19 were at | 604.7 crore, up 34% YoY largely tracking 28% growth in realisations and 5% growth in volume Carbon sales volume in Q1FY19 were at 99,200 tonne with blended realisations at | 60,467/tonne (94,769 tonne, | 47,264/tonne in Q1'18) EBITDA in Q1FY19 came in at | 135.8 crore with corresponding EBITDA margins at 22.4% (EBITDA/tonne at | 13,685/tonne) PAT in Q1FY19 came in at | 76.7 crore vs. | 50.0 crore in the base...

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....

Himadri Speciality Chemicals (HSCL) reported a robust Q3FY18 performance. Total revenues for the quarter came in at | 500.1 crore, up 42% YoY largely tracking 47.5% growth in realisations amid subdued volume (down 3.3% YoY, annual maintenance shutdown) EBITDA in Q3FY18 came in at | 123.5 crore with corresponding EBITDA margins at 24.7% (EBITDA/tonne at | 13252/tonne) PAT in Q3FY18 came in at | 70.1 crore vs. | 20.1 crore in the base quarter and | 51.2 crore in Q2FY18. Higher PAT was also supported...

Himadri Speciality Chemical (HSCL) is an integrated manufacturer of speciality carbon chemicals with coal tar distillation capacity of 4 lakh tonne annually. HSCL is the industry leader in manufacturing coal tar pitch (CTP, market share of ~70%) that finds application in aluminium production. It is the third largest manufacturer of carbon black domestically that is used as a reinforcement material in tyre production. On the innovation side, HSCL through a decade long indigenous research has also developed advance carbon material with intended use in...

CTP market leader, vying to take the leadership to the complete carbon chain, Foray into Speciality product to add value, Single process chains, multiple products, diversified revenue source, Entry barriers in form of technology and experience

Himadri is India's leading producer of coal tar pitch (70% market share) and carbon black (17% market share). It also produces small quantities of advanced carbon materials. Management expects its volume growth to be in line with aluminium production growth in India, which is expected to increase to 4.0 mn tonnes from 2.8 mn tonnes during FY17-FY19....