Motilal Oswal has maintained its ‘Buy’ rating on Himadri Speciality Chemical and set a target price of ₹780 per share. The brokerage’s target implies upside of around 37% from the stock’s Friday closing price of ₹568.
Motilal Oswal’s positive view rests on several growth drivers. It cites 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.
The brokerage believes Himadri is well placed to benefit from rising demand for battery materials and higher-value specialty carbon products. It also sees value in the company’s expansion into tyre manufacturing through the acquisition of Birla Tyres, which it expects to create opportunities for business integration.
Battery materials as a key growth driver
Himadri is moving into lithium-ion battery materials, including LFP cathode active materials and anode materials. According to Motilal Oswal, the company plans 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. This involves capital expenditure of around ₹1,125 crore.
Anode work is at an earlier stage. Himadri is running a 200 MTPA pilot facility backed by investment of about ₹120 crore. It is also 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.
Motilal Oswal expects India’s cell manufacturing capacity to rise by around 178 GWh over the next five years, taking the total to nearly 181 GWh. The brokerage sees this creating a battery materials opportunity worth about $7 billion.
Himadri is targeting around $3 billion in battery chemicals revenue over the next six years. Motilal Oswal notes this would imply a potential 2% share of the estimated $193 billion global market by FY35. It expects battery chemicals to contribute around 15% of the company’s revenue by FY30.
Specialty carbon and tyres
Beyond batteries, Himadri is using its leadership in coal tar pitch (CTP) and its integrated carbon platform to move into higher-value segments. These include 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, which Motilal Oswal says is 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 demand from electric vehicles, electronics and energy storage.
Motilal Oswal’s Buy rating and ₹780 target are built on these expansion plans, as the brokerage sees them supporting Himadri’s growth over the coming years.
The call, as given by the analyst
| Analyst | Firm | SEBI registration | Instrument | View | Target | Stop-loss | Analyst interest disclosed |
|---|---|---|---|---|---|---|---|
| Motilal Oswal | INH000000412 | Himadri Speciality Chemical | BUY | 780 | – | Not stated in source |
Disclosure: This article reports the views of the named analyst or research firm. They are theirs, not MyFinanceBandhu recommendations. MyFinanceBandhu is not a SEBI-registered investment adviser or research analyst and does not give investment advice. The author and MyFinanceBandhu hold no position in the instrument discussed. Past performance does not predict future results. Check the analyst registration on SEBI’s website before acting. Source: original report.
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