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BSE: 509631 | NSE: HEG | Electrodes & Welding Equipment | Small Cap
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 Semi Strong which suggest that the price of HEG Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
Value Creation ⓘValue Creation Index Colour Code Guide ⓘ |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Mar'14 | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | TTM | |||
| 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 | -1.1 | 3.5 | 6.0 | -0.9 | -1.0 | -0.3 | -0.3 | - | ||
Growth Parameters ⓘGrowth Parameters Colour Code Guide ⓘ |
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| Sales ⓘ | 1,467 | 1,233 | 870 | 860 | 2,750 | 6,593 | 2,149 | 1,256 | 2,202 | 2,467 | 2,417 | ||
| YoY Gr. Rt. % | - | -15.9% | -29.5% | -1.1% | 219.8% | 139.7% | -67.4% | -41.5% | 75.3% | 12.1% | - | ||
| Adj EPS ⓘ | 26.2 | 11.1 | -2.5 | -12.5 | 267.5 | 792.9 | 11.2 | -6.4 | 101.5 | 116.8 | 108.7 | ||
| YoY Gr. Rt. % | - | -57.7% | -122.1% | NA | NA | 196.4% | -98.6% | -156.9% | NA | 15.1% | - | ||
| BVPS (₹) ⓘ | 231.3 | 235.4 | 230.5 | 218.2 | 452.6 | 963.6 | 886.9 | 880.6 | 978.5 | 1,056.4 | 1,081.7 | ||
| Adj Net Profit ⓘ | 105 | 44.3 | -9.8 | -50.1 | 1,069 | 3,060 | 43.3 | -24.6 | 392 | 451 | 420 | ||
| Cash Flow from Ops. ⓘ | 773 | 276 | 249 | 157 | 594 | 1,488 | 739 | 716 | -141 | 114 | - | ||
| Debt/CF from Ops. ⓘ | 1.3 | 3.3 | 3.1 | 4.4 | 0.5 | 0.5 | 0.8 | 0.4 | -4.7 | 6.5 | - | ||
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% | ||||||||
| BVPSⓘ | 18.4% | 18.5% | 6% | 8% | ||||||||
| Share Price | 27.3% | -12.4% | 32.4% | 65.7% | ||||||||
Key Financial Parameters ⓘPerformance Ratio Colour Code Guide ⓘ |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Mar'14 | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | TTM | ||
| Return on Equity % ⓘ | 11.7 | 4.8 | -1.1 | -5.6 | 79.8 | 110.7 | 1.2 | -0.7 | 10.9 | 11.5 | 10.2 | |
| Op. Profit Mgn % ⓘ | 16.8 | 15.6 | 15.3 | 9.4 | 61.8 | 70.9 | -0.2 | -4.2 | 24.1 | 25.1 | 24.3 | |
| Net Profit Mgn % ⓘ | 7.1 | 3.6 | -1.1 | -5.8 | 38.9 | 46.4 | 2 | -2 | 17.8 | 18.3 | 17.4 | |
| Debt to Equity ⓘ | 1.1 | 1 | 0.9 | 0.8 | 0.2 | 0.2 | 0.2 | 0.1 | 0.2 | 0.2 | - | |
| Working Cap Days ⓘ | 342 | 361 | 387 | 292 | 157 | 124 | 403 | 461 | 288 | 344 | 0 | |
| Cash Conv. Cycle ⓘ | 192 | 176 | 215 | 193 | 94 | 59 | 288 | 266 | 129 | 188 | 0 | |
Return on Equity has increased versus last 3 years average to 10.20%
Net Profit is growing at healthy rate in last 3 years 118.43%
Sales growth has been subdued in last 3 years 4.71%
Sales growth is not so good in last 4 quarters at -2.75%
| Standalone | Consolidated | |
|---|---|---|
| TTM EPS (₹) | 108.7 | 132.8 |
| TTM Sales (₹ Cr.) | 2,417 | 2,417 |
| BVPS (₹.) ⓘ | 1,081.7 | 1,134.4 |
| Reserves (₹ Cr.) ⓘ | 4,136 | 4,340 |
| P/BV ⓘ | 1.58 | 1.51 |
| PE ⓘ | 15.73 | 12.90 |
| From the Market | |
|---|---|
| 52 Week Low / High (₹) | 919.00 / 1914.00 |
| All Time Low / High (₹) | 12.70 / 4950.00 |
| Market Cap (₹ Cr.) | 6,597 |
| Equity (₹ Cr.) | 38.6 |
| Face Value (₹) | 10 |
| Industry PE ⓘ | 27.8 |
| Pledged * | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
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
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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