Himadri Speciality Chemical margin contraction triggers intense debate among investors

Market pulse

From the investor's mind

The upcoming Jio initial public offering is valuing the telecom company at thirty-two to thirty-four times its earnings, representing an eight to fourteen percent valuation discount compared to its peer Bharti Airtel, which currently trades at around thirty-seven times earnings. However, a key operational divergence lies in the average revenue per user, where Bharti Airtel’s monthly figure of two hundred and sixty-four rupees stands about twenty-two percent higher than Jio’s monthly figure of two hundred and fifteen rupees and sixty paise. Highlighting this operational gap, investor Pranjal Kamra questions whether this valuation discount is actually wide enough to make Jio the more attractive investment opportunity.

Word in the street

Himadri Speciality Chemical Limited

Himadri Speciality Chemical Limited, a firm with a market cap of about 33,322 crore whose stock has risen 41.4 percent over the past year, is dominating market discussions. Investors are intensely debating its latest results, focusing on a sharp contraction in margins. While some attribute the decline to raw material spreads, Birla Tyres, and a drag from the carbon and chemicals segment, others point out that standalone operating margins remain resilient at nearly 22 percent. Strong volume growth has helped sustain profits, leaving investors divided on whether the margin compression is genuinely severe, with everyone eagerly awaiting management clarity in the upcoming conference call on the 22nd.

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