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Check Before You Invest : Himadri Speciality Chemical Ltd

BSE: 500184 NSE: HSCL ISIN: INE019C01026
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Carbon Black

Snapshot

Q.1 Which industry/sub-sector does Himadri Speciality Chemical Ltd belong to?
Himadri Speciality Chemical Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Carbon Black segment.
Q.2 Is Himadri Speciality Chemical Ltd a good quality company?
Himadri Speciality Chemical Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Himadri Speciality Chemical Ltd undervalued or overvalued?
Himadri Speciality Chemical Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 49.01 39.77
Price to Book 8 5.05
Price to Sales 8.46 3.64
EV to EBITDA 33.02 23.19
Q.4 Is Himadri Speciality Chemical Ltd a good buy now?
Himadri Speciality Chemical Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Himadri Speciality Chemical Ltd?
Himadri Speciality Chemical Ltd revenue growth is -4.2% for FY-2026, which is below its 5-year CAGR of 21.27%, indicating slower growth.

Q.2 Gross Profit margin of Himadri Speciality Chemical Ltd?
Himadri Speciality Chemical Ltd Gross profit margin which is the profit after deduction of direct costs, is 23.9% for FY-2026, which is above its 5-year median of 14.8%, indicating increasing margins.

Q.3 Operating Profit Margin of Himadri Speciality Chemical Ltd?
Himadri Speciality Chemical Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 22.2% for FY-2026, which is above its 5-year median of 15.11% indicating increasing margins.

Q.4 Net Profit Margin of Himadri Speciality Chemical Ltd?
Himadri Speciality Chemical Ltd Net Profit Margin is 17.02% for FY-2026, is above its 5-year median of 9.82%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 23.9 14.8
Operating Profit Margin (%) 22.2 15.11
Net Profit Margin (%) 17.02 9.82

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Himadri Speciality Chemical Ltd?
Himadri Speciality Chemical Ltd Return on Asset is 13.31%, which is above its 5-year historical median of 9.48%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Himadri Speciality Chemical Ltd?
Himadri Speciality Chemical Ltd Return on capital employed is 22.58% for FY-2026, which is above its 5-year historical median of 19.2%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of Himadri Speciality Chemical Ltd?
Himadri Speciality Chemical Ltd Return on equity is 18.32% for FY-2026, which is above its 5-year historical median of 16.15%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Himadri Speciality Chemical Ltd?
Himadri Speciality Chemical Ltd Cash conversion cycle is 76 days, above its 5-year historical median of 69 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.78 0.95
ROE (%) 18.32 16.15
ROCE (%) 22.58 19.2
Cash Conversion Cycle 76 days 69 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Himadri Speciality Chemical Ltd?
Himadri Speciality Chemical Ltd Debt-to-Equity ratio is 0.16, which is lower the industry average of 0.44, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Himadri Speciality Chemical Ltd?
Himadri Speciality Chemical Ltd Debt to cash flow from operations is 1.55, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Himadri Speciality Chemical Ltd?

Q.1 Promoter shareholding and pledge status of Himadri Speciality Chemical Ltd?
Promoters hold 52.50% of the Himadri Speciality Chemical Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Himadri Speciality Chemical Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Himadri Speciality Chemical Ltd vs industry peers?
Himadri Speciality Chemical Ltd revenue CAGR is 21.27%, compared to the industry median CAGR of 8.4%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -4.2 8.4
Gross Profit Growth (%) 22.8 34.6
Operating Profit Growth (%) 10.7 32.4
Net Profit Growth (%) 34.4 41.9
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.78 0.95
ROE (%) 18.32 18.93
ROCE (%) 22.58 20.53
Cash Conversion Cycle (days) 76.47 54

Valuation & price assessment

Q.1 Stock return of Himadri Speciality Chemical Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 36.5% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
36.5% 70.5% 76.7% 51.1%
Q.2 Valuation ratios of Himadri Speciality Chemical Ltd vs historical?
The current P/E ratio of 49.01 is higher than its historical median of 39.77, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 49.01 39.77 28.01
Price to Book 8 5.05 3.71
Price to Sales 8.46 3.64 2.10
EV to EBITDA 33.02 23.19 16.31

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