Up 45% in a month! Should you buy this chemical stocks post aggressive expansion plans

Shares of Himadri Speciality Chemicals Ltd hit its 52-week high on Monday even as the profit booking pushed the stock in red after a strong 45 per cent rally in the last one month amid its quarterly earnings and strong expansion plans. The stock surged 5.75 per cent on Monday to hit its 52-week high at Rs 642.60, before giving up its gains and slipping to Rs 587.40.

The stock has surged more than 45 per cent from its value at Rs 441.60 as of the close on March 30. It has jumped nearly 30 per cent 2026 so far, while it has managed to post double digit gains in the last one week also. The total market capitalization of the company stood close between the 30,000-31,000 crore range.  

Himadri Speciality Chemicals Q4 results

Himadri Speciality Chemicals reported a 29 per cent growth in the net profit on a year-on-year (YoY) basis to Rs 200.8 crore, while its revenue rose 13.5 per cent YoY to Rs 1,287.75 crore. Ebitda increased 21 per cent YoY to Rs 280 crore, while margins came in at 18.8 per cent. The company announced a final dividend of Rs 0.80 per share for the financial year 2025-26.  

Himadri Speciality Chemicals expansion plans

Himadri Speciality Chemicals is pursuing an aggressive growth strategy to diversify beyond its core carbon materials business and significantly boost revenue and profitability by FY28. The company is focusing on high-value products, diversification, and sustainable earnings, while leveraging past investments to scale operations, said the company.

Its key initiatives include expanding speciality carbon black capacity, entering EV battery materials with an LFP cathode plant by FY27, and setting up anthraquinone and carbazole facilities to reduce import dependence. It is also ramping up Birla Tyres across commercial, off-highway, and passenger vehicle segments, including EVs. Backed by strong R&D and disciplined capital allocation, Himadri aims to build resilient revenue streams and achieve long-term profitable growth.  

Himadri Speciality Chemicals Target prices

Himadri Specialty Chemical’s Q4FY26 print was good considering gross profit rose, while its Ebitda performance was impacted by forex loss of INR 0.4bn. Company sees no material impact from the Middle-East crisis and expects the FY27 performance to benefit from the ramp-up of its newly commissioned specialty carbon black plant, and the likely commissioning of a new chemicals plant in Q3FY27, said ICICI Securities.

"While the battery materials segment could see pilot plants help secure approvals and contracts for a sharp ramp-up from FY28, Himadri has improved its balance sheet to a net cash position of Rs 100 crore. This means the company may be able to invest in battery material plants without stretching leverage ratios. We raise Ebitda by 16–25 per cent for FY27/28E, as profitability in the ‘others’ segment is much better," it added with a 'hold' rating and a target price of Rs 550.  

What do charts suggest

On the technical front, it has decisively broken above its falling trendline resistance, which had capped upside moves for several weeks. This breakout reflects a positive shift in momentum and signals that bulls are regaining control. It is trading comfortably above its key Ema, highlighting strong trend strength across multiple time frames, said Aakash Shah, Technical Analyst at Choice Broking.

"A close above the recent resistance zone near Rs 600 has already confirmed the breakout setup. If the stock continues to hold above this level, it may attract further momentum buying in the coming sessions. On the downside, the Rs 580 level will act as immediate support. Dips are likely to witness buying interest," he added suggesting a rally to Rs 650-680 levels if it holds Rs 620 mark.

It has broken out of its weekly symmetrical triangle pattern on the upside. The price is also trading above short-term exponential moving averages, suggesting a continued upward trend, said Muthuselvaraj M Technical Analyst at Mirae Asset ShareKhan.

"The weekly momentum indicators, both MACD and RSI, have shown a positive crossover with the strength of their green histograms, and RSI stands above 70. Therefore, it could lead towards the upside terrain at Rs 680-750 for the short and medium term. A reversal would only occur if it drops below 550," he adds.

The stock is currently trading within a well-defined range, with immediate support placed at Rs 575 and resistance at Rs 625. A decisive breakout above the Rs 625 level could trigger fresh buying interest, potentially pushing the stock towards the Rs 650 mark in the near term, said Jigar S Patel, Senior Technical Research Analysts at Anand Rathi Share and Stock Brokers.

"Until such a breakout occurs, the stock is expected to consolidate within the 575–650 range. However, traders should exercise caution at higher levels, as both price action and momentum oscillators indicate an overextended condition. Given this setup, it would be prudent to consider partial profit booking and adopt a cautious approach in the short term," he added.