Shares of Himadri Speciality Chemical have hit a speed bump, sliding 20.5% from their all-time high of ₹688 in September to ₹547 today. Despite this correction, it’s still up an impressive 77% in 2024. ICICI Securities recently initiated coverage with an ‘ADD’ rating and a target price of ₹600, citing the company’s dominance in India’s coal-tar value chain. Himadri commands a 60–70% market share in Coal Tar Pitch (CTP) and other derivatives, bolstered by its forward integration into high-margin carbon black production. What’s driving long-term optimism? For one, Himadri’s strategy moves into lithium-ion battery materials. The company’s expansion in export markets commands a premium pricing advantage of 10–15%, enhancing profitability. On top of that, Himadri’s planned boost to coal tar distillation capacity targets growing demand for aluminum production. With stable demand and expanding markets, the company’s fundamentals remain robust, making this dip an opportunity for long-term investors rather than a cause for concern.