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Multibagger stock to buy: Motilal Oswal sees 37% upside in Himadri Speciality Chemical; key triggers, target price

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In short

To capitalize on the expanding energy storage market, the business aims to generate $3 billion in battery chemicals revenue over the next six years. It has committed roughly ₹1,125 crore to expand lithium iron phosphate cathode capacity to 40,000 metric tonnes per annum by FY28. The strategy also includes developing anode materials alongside higher-value specialty carbon products derived from its coal tar pitch operations.

Key points

  • Battery chemicals are projected to deliver $3 billion in revenue over a six-year period.: Battery chemicals are projected to deliver $3 billion in revenue over a six-year period.
  • Domestic coal tar pitch capacity covers about 80% of demand while enabling expansion into…: Domestic coal tar pitch capacity covers about 80% of demand while enabling expansion into higher-margin specialty carbon goods.
  • Sourcing shifts under China+1 and rising adoption of LFP batteries provide primary tailwi…: Sourcing shifts under China+1 and rising adoption of LFP batteries provide primary tailwinds for future earnings growth.

Sources checked by our analysis pipeline: 1

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,…

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