Himadri Speciality Chemical Ltd, largest coal tar pitch manufacturer, reported spectacular third quarter numbers on the back of strong revenue growth and high operational efficiency. Revenue or Income From Operations rose 28% YOY and stood at Rs. 5001 Mn compared to Rs. 3913 Mn in the corresponding December quarter previous year. EBDITA almost doubled and was reported at Rs. 1222 Mn compared to Rs. 627 Mn on yearly basis. Profit After Tax multiplied 4 times YOY from Rs. 201 Mn to Rs. 701 Mn in the December quarter FY18. Sequential growth was also strong and stable for Revenue, EBDITA & PAT at 7%, 17% & 37% respectively.
We recommend BUY for the medium & long term with target price of Rs. 265. We recommend BUY for the stock for medium & long term investment with PE multiple of 25.70 x FY18E & 20.21 x FY19E at CMP of Rs.147.45.