Himadri Speciality Chemical Ltd.
ISIN: INE019C01026 • Market Cap: ₹37,856 Cr
The 5-Pillar Quality Audit for Himadri Speciality Chemical Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (20.2%), Return on Capital Employed (21.0%), and equity compounding (16.0%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.16 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (5.9%) and 3Y PAT CAGR (25.1%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 47.37 vs PEG of 1.99 and Dividend Yield of 0.1%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 52.5%, backed by 10.1% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 21.0%)
Himadri Speciality Chemical Ltd. generates exceptional return on capital employed of 21.0%, reflecting pricing power and competitive moat.
High-Velocity Profit Compounding (3Y PAT CAGR: 25.1%)
Net earnings have compounded at 25.1% annualized, demonstrating operating leverage.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Chemicals)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Chemicals space.
Quantitative Strategy Eligibility
Checking HSCL against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 72/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Chemicals Sector Peer Comparison
Compare HSCL directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Himadri Speciality Chemical Ltd. (HSCL)Current | 72/100 | ₹37,856 Cr | 47.37 | 21.0% | 0.16 | — |
| Solar Industries India Ltd. (SOLARINDS) | 80/100 | ₹1.79 Lakh Cr | 89.97 | 30.2% | 0.23 | View |
| Pidilite Industries Ltd. (PIDILITIND) | 75/100 | ₹1.68 Lakh Cr | 63.40 | 28.7% | 0.01 | View |
| SRF Ltd. (SRF) | 73/100 | ₹76,329 Cr | 35.31 | 15.2% | 0.36 | View |
| Coromandel International Ltd. (COROMANDEL) | 72/100 | ₹60,148 Cr | 32.83 | 21.6% | 0.07 | View |
| Linde India Ltd. (LINDEINDIA) | 61/100 | ₹57,146 Cr | 104.59 | 12.2% | 0.00 | View |
Frequently Asked Questions: Himadri Speciality Chemical Ltd.
Q:What is the 5-Pillar Fundamental Score for Himadri Speciality Chemical Ltd. (HSCL)?
Himadri Speciality Chemical Ltd. has a RupeeTools Fundamental Score of 72/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (82/100), Financial Health (79/100), Growth (72/100), Valuation (52/100), and Ownership Quality (68/100).
Q:Is HSCL fundamentally strong for long-term investment?
Yes, HSCL exhibits solid fundamental strength with a 72/100 score, driven by a return on equity of 16.0% and a debt-to-equity ratio of 0.16.
Q:Does HSCL pass the Coffee Can Investing filter?
Yes! HSCL satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does HSCL compare against other Chemicals peers?
Within India's Chemicals sector, HSCL trades at a P/E of 47.37 and generates an ROCE of 21.0%. Compare its 5-Pillar score of 72/100 against top sector peers like Solar Industries India Ltd. (80/100), Pidilite Industries Ltd. (75/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.