HEG Ltd - Stock Valuation and Financial Performance

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

HEG Share Price

1,829.20 -34.75 -1.86%
as on 19-Mar'24 10:42

DeciZen - make an informed investing decision on HEG

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

HEG stock performance -

mw4me loader
P/E Ratio (SA):
25.19
Market Cap:
7,194 Cr.
52-wk low:
919
52-wk high:
2,009

Is HEG Ltd an attractive stock to invest in?

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 Strong which suggest that the price of HEG Ltd is likely to Rise 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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 7.4%5.2%1.8%-0.7%60.5%94.7%1.6%-0.4%9.8%10.1%-
Value Creation
Index
-0.5-0.6-0.9-1.13.56.0-0.9-1.0-0.3-0.3-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,4671,2338708602,7506,5932,1491,2562,2022,4672,465
Sales YoY Gr.--15.9%-29.5%-1.1%219.8%139.7%-67.4%-41.5%75.3%12.1%-
Adj EPS 26.211.1-2.5-12.5267.5792.911.2-6.4101.5116.874
YoY Gr.--57.7%-122.1%NANA196.4%-98.6%-156.9%NA15.1%-
BVPS (₹) 231.3235.4230.5218.2452.6963.6886.9880.6978.51,056.41,064.8
Adj Net
Profit
10544.3-9.8-50.11,0693,06043.3-24.6392451286
Cash Flow from Ops. 7732762491575941,488739716-141114-
Debt/CF from Ops. 1.33.33.14.40.50.50.80.4-4.76.5-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 6%-2.2%4.7%12.1%
Adj EPS 18.1%-15.3%118.4%15.1%
BVPS18.4%18.5%6%8%
Share Price 24.9% -3.2% 4.9% 89.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
11.74.8-1.1-5.679.8110.71.2-0.710.911.57
Op. Profit
Mgn %
16.815.615.39.461.870.9-0.2-4.224.125.118.8
Net Profit
Mgn %
7.13.6-1.1-5.838.946.42-217.818.311.6
Debt to
Equity
1.110.90.80.20.20.20.10.20.2-
Working Cap
Days
342361387292157124403461288344200
Cash Conv.
Cycle
1921762151939459288266129188107

Recent Performance Summary

Net Profit is growing at healthy rate in last 3 years 118.43%

Return on Equity has declined versus last 3 years average to 7.00%

Sales growth has been subdued in last 3 years 4.71%

Sales growth is not so good in last 4 quarters at -1.65%

Latest Financials - HEG Ltd.

Standalone Consolidated
TTM EPS (₹) 74 98.1
TTM Sales (₹ Cr.) 2,465 2,465
BVPS (₹.) 1,064.8 1,136.4
Reserves (₹ Cr.) 4,071 4,347
P/BV 1.75 1.64
PE 25.19 19.01
From the Market
52 Week Low / High (₹) 919.00 / 2009.00
All Time Low / High (₹) 12.70 / 4950.00
Market Cap (₹ Cr.) 7,194
Equity (₹ Cr.) 38.6
Face Value (₹) 10
Industry PE 20.5

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

Login/Register to view analysis.

Analyst's Notes

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales1,4671,2338708602,7506,5932,1491,2562,2022,467
Operating Expenses 1,2211,0517377801,0511,9352,1551,3151,6741,848
Manufacturing Costs440441367384509385316288495565
Material Costs5044132102442841,1151,621809829915
Employee Cost 5761635911219866558092
Other Costs 2191369793146237152164270276
Operating Profit 246182133801,6994,658-6-59527620
Operating Profit Margin (%) 16.8%14.7%15.3%9.3%61.8%70.7%-0.3%-4.7%23.9%25.1%
Other Income 2215883510914411380109
Interest 7277605556183711726
Depreciation 737579747372727379102
Exceptional Items -25000000000
Profit Before Tax 97441-411,6054,67729-31520600
Tax 115995231,627-24-5129145
Profit After Tax 8739-8-501,0813,05053-25391456
PAT Margin (%) 5.9%3.2%-0.9%-5.8%39.3%46.3%2.5%-2.0%17.7%18.5%
Adjusted EPS (₹)21.79.8-1.9-12.5270.6790.413.8-6.6101.2118.0
Dividend Payout Ratio (%)28%31%0%0%30%10%181%-46%40%36%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 9249419218721,8093,7193,4233,3993,7774,077
Share Capital 40404040403939393939
Reserves 8849018818321,7693,6803,3843,3603,7384,039
Minority Interest0000000000
Debt833828677547297666593297663741
Long Term Debt169252157136000000
Short Term Debt664576520412297666593297663741
Trade Payables2301295286246380134257448412
Others Liabilities 757591485266288304200195411405
Total Liabilities 2,7442,4892,1341,7722,6405,0704,3504,1485,2995,635

Fixed Assets

Gross Block1,5031,5421,6461,6661,6731,6911,7131,7131,8432,535
Accumulated Depreciation5626367137818449079721,0221,0881,180
Net Fixed Assets9419079328858307857416917551,356
CWIP 119108271219101373696472
Investments 981501501501498671,1561,2611,034664
Inventories4944023712585111,3081,0055819781,440
Trade Receivables5244053183619731,187399289589489
Cash Equivalents 124588557437551602682
Others Assets557514331109168347510402645532
Total Assets 2,7442,4892,1341,7722,6405,0704,3504,1485,2995,635

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 7732762491575941,488739716-141114
PBT 97441-411,6054,67729-31520600
Adjustment 161144146133120-27-3102252
Changes in Working Capital 5259411075-607-1535844749-555-390
Tax Paid -11-5-8-10-523-1,627-104-2-128-148
Cash Flow From Investing Activity -294-83-29-1-9-676-275-417-183-31
Capex -200-27-31-3-14-48-110-255-359-479
Net Investments -27-52001-666-216-44145419
Others -66-42143850-1183029
Cash Flow From Financing Activity -482-202-219-153-588-788-460-310344-100
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing -191-22-7910-27200000
Interest Paid -72-77-60-55-57-18-37-12-10-23
Dividend Paid -24-1200-120-320-2890-12-154
Others -195-91-81-108-139-451-134-29736677
Net Cash Flow -3-813-3244-1120-17
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)9.694.18-0.81-5.5880.68110.371.49-0.7410.8911.6
ROCE (%)8.066.383.440.8690.73144.651.57-0.512.9713.53
Asset Turnover Ratio0.630.560.480.561.251.710.460.30.470.45
PAT to CFO Conversion(x)8.897.08N/AN/A0.550.4913.94N/A-0.360.25
Working Capital Days
Receivable Days12111612011488601351007380
Inventory Days1191121281065150196230129179
Payable Days1321591571032141035888155171

HEG Ltd Stock News

HEG Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of HEG on 19-Mar-2024 10:42 is ₹1,829.2.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 19-Mar-2024 10:42 the market cap of HEG stood at ₹7,194.
The latest P/E ratio of HEG as of 19-Mar-2024 10:42 is 25.19.
The latest P/B ratio of HEG as of 19-Mar-2024 10:42 is 1.75.
The 52-week high of HEG is ₹2,009 and the 52-week low is ₹919.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of HEG is ₹2,465 ( Cr.) .

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.
Read More Read Less
You have 2 views remaining as a Guest User. To get DeciZen Rating of 3,500+ Stocks based on their Quality, Valuation and Price Trend Login Now
© 2024 The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me ® is a registered trademark of The Alchemists Ark Pvt.Ltd.