HSCL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

🧠 My Thought Process

You're asking for a full-spectrum fundamental analysis of Himadri Speciality Chemical Ltd (HSCL), with a numeric rating and actionable investment guidance. I see you're focused on long-term value, so I’ll weigh profitability, capital efficiency, valuation, and strategic positioning to give you a clear verdict.

📊 Fundamental Analysis of HSCL

🔍 Core Financials

Profitability

PAT Qtr: ₹183 Cr vs ₹158 Cr — strong growth (↑47.9%).

EPS: ₹12.5 — modest but improving.

ROE: 16.8%, ROCE: 22.6% — solid returns, above industry average.

Leverage & Liquidity

Debt-to-equity: 0.09 — low leverage, healthy balance sheet.

Dividend Yield: 0.13% — minimal, reinvestment-focused.

Cash Flow

Operating cash flows are stable; capex is being directed toward high-growth segments like advanced carbon materials.

📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio 37.6 Slightly above industry PE of 36.7 — mildly overvalued

P/B Ratio ~6.4 Premium valuation, justified by growth

PEG Ratio 0.36 Very attractive — undervalued relative to growth

Intrinsic Value ~₹520–₹550 Slight upside from current price

🏭 Business Model & Competitive Edge

Segment Leadership: No.1 coal pitch manufacturer in India; only domestic producer of advanced carbon materials

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Diversified Portfolio: Serves lithium-ion batteries, paints, plastics, tires, defense, and construction chemicals

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Moat: Deep vertical integration, proprietary tech, and strong R&D pipeline.

Growth Drivers: Rising demand in EV batteries and specialty chemicals; export expansion.

📈 Technical & Entry Guidance

Current Price: ₹470

DMA 50/200: ₹469 / ₹471 — trading flat, consolidation zone.

RSI: 52.4 — neutral.

MACD: -1.04 — mild bearish crossover.

🎯 Entry Zone

Ideal Buy Range: ₹455–₹465 — near support levels.

Stop Loss: ₹440

Target: ₹520–₹550 in medium term

🕰️ Long-Term Holding Outlook

Hold if invested: Strong fundamentals and growth trajectory.

Buy on dips: PEG and sector positioning make it attractive.

Growth Triggers: EV battery materials, export growth, and margin expansion.

⭐ Fundamental Rating

4.3

Let me know if you’d like a peer comparison with Rain Industries or Graphite India next!

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