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HEG Ltd Stock Analysis

Small Cap
Evaluated by 2774 users | BSE: 509631 | NSE: HEG |
Electrodes & Welding Equipment

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,...

Analysis of Financial Track Record

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
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 8.6%8.25%8.74%7.38%5.16%1.82%-0.72%60.53%93.56%0.42%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,1141,4251,6231,4671,2338708602,7506,5932,149
Y-o-Y Gr. Rt.-27.9%13.9%-9.6%-15.9%-29.5%-1.1%219.8%139.7%-67.4%
Adjusted EPS (Rs.) 28.4831.6435.7926.2111.09-2.45-12.53267.46783.52-2.08
Y-o-Y Gr. Rt.-11.1%13.1%-26.8%-57.7%-122.1%NANA193%-100.3%
Book Value per Share (Rs.) 190.53190.75216.04231.25235.42230.48218.17452.62963.58886.86
Adjusted Net Profit 12212614310544.3-9.8-50.11,0693,024-8
Net Op. Cash Flow (Rs. Cr.) 37.627.11157732762491575941,488864
Debt to Cash Flow from Ops 24.2246.8912.121.333.323.144.350.50.450.69
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
HEG Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 7.6%11.8%35.7%-67.4%
Adjusted EPS -174.8%-171.6%NA-100.3%
Book Value per Share 18.630.459.6-8
Share Price 19.9% 45.3% -31.6% -15.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 15.7716.0217.611.724.75-1.05-5.5979.74109.42-0.22
Operating Profit Margin (%) 19.9517.0418.0616.8115.6115.329.3961.7770.87-0.23
Net Profit Margin (%) 10.968.888.817.143.59-1.13-5.8238.8645.87-0.37
Debt to Equity 1.121.661.621.110.970.850.780.160.180.17
Working Capital Days 400335317342361387292157124403
Cash Conversion Cycle 2562051991921762151939358287
Entity Percentage Holding
Promoters 59.62%
Institutions 14.32%
Non-Institutions 26.06%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of HEG Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that HEG Ltd is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of HEG Ltd's performance infers:

HEG Ltd earnings have declined by -171.6%, whereas share price has appreciated 45.3% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of HEG Ltd share prices over the last 10 years. Here is what we found out:

HEG Ltd share price has appreciated 16.1% annually over the past ten years.

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

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.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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