Domestic brokerage firm Motilal Oswal has maintained its ‘Buy’ rating on Himadri Speciality Chemical, setting a target price of ₹780 per share. This implies an upside potential of around 37% from the stock’s Friday closing price of ₹568.
The brokerage's bullish outlook is supported by several growth drivers, including 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.
Motilal Oswal believes Himadri is positioning itself to benefit from the growing demand for battery materials and higher-value specialty carbon products, while its expansion into tyre manufacturing through the acquisition of Birla Tyres offers additional opportunities for business integration and value addition.
Himadri is expanding into the lithium-ion battery materials business through LFP cathode active materials and anode materials. The company aims 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, involving a capital expenditure of around ₹1,125 crore.
It is also developing anode materials through a 200 MTPA pilot facility, backed by an investment of approximately ₹120 crore. The company is 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.