Despite the ongoing selling pressure in the stock market, shares of Himadri Specialty Chemicals attracted the interest of investors on Friday. On the last trading day of the week, the stock reached Rs 550.95 and closed at Rs 546.85 with a gain of 0.97%.
However, this price is 20.5% lower than its all-time high of ₹688. Despite this, the stock has given an excellent return of 77% so far in the year 2024.
Stock performance: a bumpy ride
- In December 2023, the stock was at its 52-week low of ₹265.05.
- It touched an all-time high of ₹688 on 18 September 2024.
- The stock gave a staggering return of 700% between March 2023 and September 2024.
Brokerage’s view: Stock moving forward with prospects
ICICI Securities has initiated coverage on Himadri Specialty Chemicals with an ‘Add’ rating and a target price of ₹600 on the stock.
Key Points of Brokerage:
- Strong Relationship:
- The company has built strong relationships with steel producers for sourcing coal-string crude.
- New Initiative:
- The company has announced plans to produce cathode active material – Lithium Iron Phosphate (LFP).
- This initiative will increase the company’s influence in the lithium-ion battery materials market.
- Export Expansion:
- Himadri is strengthening its presence in markets such as South Africa, Middle East, and Australia for CTP (Coal Tar Pitch).
Stock market condition: downward pressure
There has been a huge decline in the Indian stock market for the last few days.
- In the last five days, BSE Sensex has fallen 4,091.53 points or 4.98%.
- During this period, equity investors have lost more than Rs 18.43 lakh crore.
What signals for investors?
- Current stock status:
- Himadri Specialty Chemicals stock may be down from its all-time high, but its long-term prospects remain strong.
- Future Expectations:
- Plans to expand lithium-ion battery material production and exports could make it profitable in the long run.
- Stock market environment:
- Despite the current selloff, experts are considering it a temporary setback.
