Himadri Special (HSCL)

FairStock Score: 64/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear two hats: Graham's demand for a margin of safety and Buffett's preference for durable advantages. Himadri Special, at ₹781.05 and ₹39,410 Cr market cap, shows a capable operating business: ROE 18.97%, ROCE 22.01%, debt/equity only 0.16, Piotroski 8/9, Altman Z 5.58, and FCF ₹212 Cr. Sales grew 28% and profit 24.7%, with a five-year revenue CAGR of 20.63%; latest quarter produced ₹1,184 Cr sales and ₹192 Cr net profit. That is real execution, and promoters own 52.49%, aligning them with shareholders. But I cannot call this cheap. Book value is ₹93.29 while the stock trades at ₹781.05, so P/B is 8.37. The Graham Number is ₹159.83; DCF intrinsic value is ₹224.66. That leaves a margin of safety of negative 203.36%. P/E 49.03 and PEG 2.03 require exceptional growth to continue for years. Dividend yield is only 0.10%, so little cash return while waiting. EV/EBITDA is shown as -11.18, which I would not treat as a normal valuation signal without clarification. Carbon black is generally cyclical, and the data does not prove a wide moat beyond cost efficiency and balance-sheet discipline. FairStock Score 64/100, 'STEADY', suggests decent quality but not a bargain. So: good business, low leverage, high returns, but the price already assumes much. As Graham would say, the market can be a voting machine; here it is voting enthusiastically. I would wait for a much lower price or clearer durable competitive advantage before committing.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer