Domestic brokerage firm Motilal Oswal has reiterated its Buy rating on Himadri Speciality Chemical, with a target price of ₹780 per share. Based on the stock’s previous closing price of ₹568, this target indicates a potential upside of approximately 37%.
The brokerage remains optimistic about the company’s growth prospects, supported by rising demand for battery materials, China+1 sourcing opportunities, expanding domestic cell manufacturing and the global shift towards lithium iron phosphate (LFP) batteries.
Himadri is also strengthening its specialty carbon business and expanding its presence in the tyre industry following its acquisition of Birla Tyres. These developments could create new opportunities for business integration and higher-value products.
Battery Materials Could Drive Future Growth
Himadri is expanding its lithium-ion battery materials portfolio, focusing on LFP cathode active materials and anode materials.
The company plans to increase its LFP cathode manufacturing capacity from 2,000 metric tonnes per annum (MTPA) in Q3 FY27 to 40,000 MTPA by FY28. The expansion is expected to require an investment of around ₹1,125 crore.
Meanwhile, Himadri is developing anode materials through a 200 MTPA pilot facility, supported by an investment of approximately ₹120 crore. It is also building its technology capabilities through an exclusive partnership with Sicona for silicon-carbon anode materials. Additionally, the company holds a 19.44% stake in IBC and a 40% stake in Invati Creations.
Motilal Oswal expects India’s cell manufacturing capacity to grow by nearly 178 GWh over the next five years, taking total capacity to approximately 181 GWh. This expansion could open up a battery materials market opportunity worth around $7 billion.
Himadri has set an ambitious target of generating nearly $3 billion in battery chemicals revenue over the next six years. This would represent a potential 2% share of the estimated $193 billion global market by FY35. The brokerage also expects battery chemicals to contribute around 15% of the company’s revenue by FY30.
Birla Tyres Acquisition and Specialty Carbon Expansion
Battery materials are not the company’s only growth opportunity. Himadri is also expanding its specialty carbon portfolio by leveraging its established coal tar pitch (CTP) and integrated carbon operations.
Its growth strategy includes products such as specialty carbon black, carbon nanotubes (CNTs), super specialty carbon black (SSCB) and other advanced specialty chemicals.
The company has approximately 300,000 MTPA of coal tar pitch capacity, which can meet nearly 80% of domestic demand. In FY26, its specialty carbon black capacity doubled to 130,000 MTPA, while standard carbon black capacity stood at 120,000 MTPA.
Furthermore, Himadri is developing additional capacities of 200 MTPA for carbon nanotubes and 6,000 MTPA for super specialty carbon black. These products could benefit from increasing demand across electric vehicles, electronics and energy storage applications.
What Investors Should Watch
Motilal Oswal’s ₹780 target reflects its confidence in Himadri’s expansion plans and long-term battery materials opportunity. However, investors should monitor project execution, capital expenditure, demand growth, competition and profitability before making an investment decision.
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Disclaimer: This article is for informational and educational purposes only. The brokerage rating and target price represent the analyst’s opinion, not a guaranteed return. Investors should conduct independent research or consult a SEBI-registered financial adviser before investing.
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