HEG Ltd Stock Analysis

BSE: 509631 | NSE: HEG | Electrodes & Welding Equipment | Small Cap

BSE Share Price Jul 01, 18:01
981.50 -16.50 (-1.65%)

DeciZen - Make an Informed Decision on HEG

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

FAQs

1. Is HEG Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that HEG Ltd is a average quality company.

2. Is HEG Ltd undervalued or overvalued?

The key valuation ratios of HEG Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is HEG Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of HEG Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of HEG:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
HEG Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 8.3%8.7%7.4%5.2%1.8%-0.7%60.5%93.6%1.6%-0.4%-
Value Creation Index -0.4-0.4-0.5-0.6-0.9-1.13.55.9-0.9-1.0-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,4251,6231,4671,2338708602,7506,5932,1491,2562,202
YoY Gr. Rt. %-13.9%-9.6%-15.9%-29.5%-1.1%219.8%139.7%-67.4%-41.5%-
Adj EPS 31.635.826.211.1-2.5-12.5267.5783.511.2-6.4101.2
YoY Gr. Rt. %-13.1%-26.8%-57.7%-122.1%NANA193%-98.6%-156.9%-
BVPS (₹) 190.8216231.3235.4230.5218.2452.6963.6886.9880.6978.5
Adj Net Profit 12614310544.3-9.8-50.11,0693,02443.3-24.6391
Cash Flow from Ops. 27.11157732762491575941,488739729-
Debt/CF from Ops. 46.912.11.33.33.14.40.50.50.80.4-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales -1.4%7.6%-23%-41.5%
Adj EPS -183.7%NA-128.8%-156.9%
BVPS 18.530.824.8-0.7
Share Price 16.3% 18.7% -11.3% -55.3%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 1617.611.74.8-1.1-5.679.7109.41.2-0.710.9
Op. Profit Mgn % 1718.116.815.615.39.461.870.9-0.2-4.223.9
Net Profit Mgn % 8.98.87.13.6-1.1-5.838.945.92-217.7
Debt to Equity 1.71.61.110.90.80.20.20.20.10
Working Cap Days 335317342361387292157124403462402
Cash Conv. Cycle 2051991921762151939358287266230

Recent Performance Summary

Sales growth is good in last 4 quarters at 75.36%

Return on Equity has declined versus last 3 years average to 10.90%

Sales growth has been subdued in last 3 years -22.99%

Net Profit has been subdued in last 3 years -128.79%

Latest Financials - HEG Ltd.

Standalone Consolidated
TTM EPS (₹) 101.2 111.7
TTM Sales (₹ Cr.) 2,202 2,202
BVPS (₹.) 978.5 1,014
Reserves (₹ Cr.) 3,738 3,875
P/BV 1.00 0.97
PE 9.70 8.80
From the Market
52 Week Low / High (₹) 891.15 / 2626.15
All Time Low / High (₹) 12.70 / 4950.00
Market Cap (₹ Cr.) 3,788
Equity (₹ Cr.) 38.6
Face Value (₹) 10
Industry PE 15.9

Management X-Ray of HEG :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

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News

About HEG Ltd

HEG incorporated in 1972 is a public limited company incorporated. HEG, a premier company of the LNJ Bhilwara group, is India’s leading graphite electrode manufacturer. It has one of the largest integrated Graphite Electrode plants in the world, processing sophisticated UHP (Ultra High Power) Electrodes. The position the company enjoys in India and abroad is largely due to its commitment to constant upgradation of its product quality to match international standards and to meet new challenges to win and excel in all situations.

Business area of the company

HEG is a leading manufacturer and exporter of graphite electrodes in India and operates world's largest single-site integrated graphite electrodes plant.

Divisions

Graphite Electrodes: The main business of HEG is graphite which accounts for 80% of the revenue. Set up in 1977, in technical and financial collaboration with Societe Des Electrodes Et Refractaires Savoie (SERS), a subsidiary of Pechiney of France, HEG is now the largest integrated graphite plant in the world. Spread over an area of about 170 acres, HEG (graphite division) has facilities for production of Graphite Electrodes and Graphite Specialities. Its plant is located at Mandideep near Bhopal (MP).

Power Division: One of the major bottlenecks plaguing the Indian industry has been the shortage of power. At HEG Limited, it realized this as early as 1995 and overcame this problem by setting up the group’s first hydropower project of 13.5 MW rated capacity in Tawanagar, district Hoshanabad (M.P.) which was commissioned in 1997. The power generated at this unit is wheeled to the graphite plant at Mandideep. This not only ramped up the efficiency of the graphite plant but also opened a window of opportunity in power generation.

Carbon Speciality: HEG also makes Fine Grain Carbon Blocks for various applications on special orders. These blocks are used by the customers to make value added products like Heat Exchangers, etc.

Reward & Recognitions

  • Awarded ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 certifications.
  • Winner of the country’s top export award instituted by the Chemical & Allied Products Export Promotion Council (CAPEXIL) for outstanding exports for 19 consecutive years. For 2001-02, HEG was awarded the ‘Highest’ Export Award.
  • HEG has been regularly exporting electrodes since 1981 and today exports more than 70% of its production.
  • HEG’s graphite electrodes are exported to 30 countries around the world, including developed countries like USA, Canada, Germany, France, Italy, South Korea, Australia etc. - a reward for its commitment to World winning Quality and Performance.
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