#Speciality Chemical & Lithium-ion battery Himadri Speciality Chemical

In India Narendra Modi Government has a vision that India needs to focus on Electric Vehicles so India can reduce the import of Crude Oil. India has not such proven Crude Oil reserves that could fulfill India’s Requirement. Due to this India’s Import increases continuously and this will increase the current account deficit also.

Narendra Modi Government is thinking that around 2025 all three wheeler will be electric and sale of electric bike up to 150cc.

This will surely help India to reduced dependency on crude oil. India has a huge land space to generate green energy through Solar, Wind etc. India could easily survive it’s Energy needs due to its strong geographical locations.

Now let’s talk about a company which is engaged in Lithium-ion battery parts manufacturer. Company name is Himadri Specialty Chemical Limited.

Company caters many sectors indirectly like Metal, Infrastructure, Tyre, Plastics, Dyes & Intermediaries, Mechanical Rubber goods etc.

Let’s check detailed report about products they have

  1. Advanced Carbon Material:  it mainly uses to manufacture Lithium-ion batteries for various purpose like for Electric vehicle, Mobile, for storage systems etc.

 They have developed an advanced version of Anode Material. There are two types of anode material Natural and Synthetic Varieties.

  • Coal tar Pitch: mainly used as binder to manufacture Carbon Anode. Carbon Anode is used in electrolysis to extract Aluminum from Alumina. Every Aluminum Manufacturer needs this type of binder’s everyday to manufacture high quality Aluminum.
  • Company has two options in binders also solid and in liquid form.
  • Coal tar Pitch is also used to Manufacture High quality Graphite Electrodes.
  • Carbon Black: mainly used to manufacture Tyre, moulded rubber products, auto parts, packaging industries, Agriculture mulch films, photographic containers, electrical/electronics, household appliances etc.
  • Nepthalene: used to manufacture dyes and intermediaries.
  • SNF & PCE:
  • SNF (Sulphonated Nepthalene Formaldehyde) polymer for admixture in concrete for Infrastructure Industries
  • PCE (Poly Carboxylate Ether) a type of polymer works as super plasticizers in higher strength concrete infrastructure applications.

Let’s Check Company Balance Sheet

Data Represents March 2018

Sources Of Funds
Total Share Capital 41.84
Equity Share Capital 41.84
Share Application Money 1.29
Preference Share Capital 0.00
Reserves 1,413.19
Revaluation Reserves 0.00
Networth 1,456.32
Secured Loans 460.76
Unsecured Loans 134.66
Total Debt 595.42
Total Liabilities 2,051.74

Let’s Check last 3 years Financial Results

FY REVENUE (IN CR) PROFIT (IN CR) EPS (IN RS)
2016-17 1318.49 81.18 1.94
2017-18 1971.17 242.58 5.8
2018-19 1793.18 235.1 5.62

In 2018-19 last quarter results still pending it will come soon then I’ll update. Revenue will surely cross above 2200 Crore and Profit this time might Cross 300 Crore level.

But if when it comes to buy this stock I will say just wait and watch because stock can decline nearly around 80 level but if anyone wants to then grab it via SIP route only. There is volatility in Mid-cap and Small-cap Companies if it continues then this stock will surely comedown but at lower level it will be a good buy and it could be a Multibagger.

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