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INVESTMENT INSIGHTS

Check Before You Invest : HEG Ltd

BSE: 509631 NSE: HEG ISIN: INE545A01024
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Electrodes & Welding Equipment

Snapshot

Q.1 Which industry/sub-sector does HEG Ltd belong to?
HEG Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electrodes & Welding Equipment segment.
Q.2 Is HEG Ltd a good quality company?
HEG Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is HEG Ltd undervalued or overvalued?
HEG Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is HEG Ltd a good buy now?
HEG Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of HEG Ltd?
HEG Ltd revenue growth is -10.1% for FY-2025 , which is below its 5 year CAGR of 0% , indicating slower growth.
Q.2 Gross Profit margin of HEG Ltd?
HEG Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.1% for FY-2025 , which is below its 5 year median of 20.4% , indicating decreasing margins.
Q.3 Operating Profit Margin of HEG Ltd?
HEG Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.89% for FY-2025 , which is below its 5 year median of 16.03% indicating decreasing margins.
Q.4 Net Profit Margin of HEG Ltd?
HEG Ltd Net Profit Margin is 4.71% for FY-2025 , is below with its 5 year median of 9.67%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 16.1 20.4
Operating Profit Margin 14.89 16.03
Net Profit Margin 4.71 9.67
Q.5 Return on Asset of HEG Ltd?
HEG Ltd Return on Asset is 1.88%, which is below its 5 year historical median of 4.25%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of HEG Ltd?
HEG Ltd Return on equity is 2.44% for FY-2025 , which is below its historical median of 5.63%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of HEG Ltd?
HEG Ltd Return on capital employed is 3.93% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 13.5%, indicating value preservation.
Q.8 Cash conversion cycle of HEG Ltd?
HEG Ltd Cash conversion cycle is 208 days, above its historical median of 202 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.4 0.44
ROE 2.44 5.63
ROCE 3.93 7.33
Cash Conversion Cycle 208 days 202 days
Q.9 Debt to Equity ratio of HEG Ltd?
HEG Ltd Debt-to-Equity ratio is 0.14 , which is above with the industry average of 0.11 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of HEG Ltd?
HEG Ltd Debt to cash flow from operations is 1.83 , which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of HEG Ltd?
Promoters hold 56.28% of the HEG Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of HEG Ltd vs industry peers?
HEG Ltd revenue CAGR is 0.03% , compared to the industry median CAGR of 7.29% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 2,152.7 236.2
Gross Profit 346.6 24.7
Operating Profit 261 23.5
Net Profit 101 17
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.4 1.3
ROE 2.44 11.68
ROCE 3.93 14.6
Cash Conversion Cycle (days) 208.06 92

Valuation & price assessment

Q.1 Stock return of HEG Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 35.7% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 35.7% 8.1% 45.7% 31.9%
Q.3 Valuation ratios of HEG Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 42.88 0.00 32.47
Price to Book 2.71 0.99 1.95
Price to Sales 4.84 2.17 1.73
EV to EBITDA 20.44 0.00 10.27

Check more companies

1. Graphite India
2. HEG
3. Esab india
4. Ador Welding
5. Diffusion Engineers
6. De Nora India
7. GEE
8. D&H India
9. Panasonic Carbon
10. Royal Arc Electrodes
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