HEG Ltd - Stock Valuation and Financial Performance

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

HEG Share Price

431.85 -0.05 -0.01%
as on 31-Oct'24 16:01

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):
61.02
Market Cap:
8,333.7 Cr.
52-wk low:
310.6
52-wk high:
548.9

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 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'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 6.4%3.4%0.9%90.7%144.7%1.6%-0.5%13%13.5%7.3%-
Value Creation
Index
-0.5-0.8-0.95.79.7-0.9-1.0-0.10.0-0.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,2338708602,7506,5932,1491,2562,2022,4672,3952,295
Sales YoY Gr.--29.5%-1.1%219.8%139.7%-67.4%-41.5%75.3%12.1%-2.9%-
Adj EPS 2.2-0.5-2.553.5158.62.2-1.320.323.411.97.1
YoY Gr.--122.1%NANA196.5%-98.6%-157.1%NA15.1%-49.1%-
BVPS (₹) 47.146.143.690.5192.7177.4176.1195.7211.3214.8214.9
Adj Net
Profit
44.3-9.8-50.11,0693,06043.3-24.6392451230137
Cash Flow from Ops. 2762491575941,488739716-141114615-
Debt/CF from Ops. 3.33.14.40.50.50.80.4-4.76.51-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 7.7%-18.3%24%-2.9%
Adj EPS 20.5%-40.4%NA-49.1%
BVPS18.4%2.2%6.8%1.7%
Share Price 21.7% 16.9% 1.8% 30.9%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
4.8-1.1-5.679.8110.71.2-0.710.911.55.63.3
Op. Profit
Mgn %
15.615.39.461.870.9-0.2-4.224.125.11611.8
Net Profit
Mgn %
3.6-1.1-5.838.946.42-217.818.39.66
Debt to
Equity
10.90.80.20.20.20.10.20.20.2-
Working Cap
Days
361387292157124403461288333332203
Cash Conv.
Cycle
1762151939459288266129188202110

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 24.00%

Return on Equity has declined versus last 3 years average to 3.30%

Net Profit has been subdued in last 3 years 0.00%

Sales growth is not so good in last 4 quarters at -4.37%

Latest Financials - HEG Ltd.

Standalone Consolidated
TTM EPS (₹) 7.1 10.1
TTM Sales (₹ Cr.) 2,295 2,295
BVPS (₹.) 214.9 229.5
Reserves (₹ Cr.) 4,109 4,390
P/BV 2.01 1.88
PE 61.02 42.61
From the Market
52 Week Low / High (₹) 310.61 / 548.92
All Time Low / High (₹) 2.54 / 990.00
Market Cap (₹ Cr.) 8,334
Equity (₹ Cr.) 38.6
Face Value (₹) 2
Industry PE 21.7

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

Key Ratios of HEG

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales1,2338708602,7506,5932,1491,2562,2022,4672,395
Operating Expenses 1,0517377801,0511,9352,1551,3151,6741,8482,011
Manufacturing Costs441367384509385316288495565538
Material Costs4132102442841,1161,6228108309161,152
Employee Cost 6163591121986655809295
Other Costs 1369793146236151163270275226
Operating Profit 182133801,6994,658-6-59527620384
Operating Profit Margin (%) 14.7%15.3%9.3%61.8%70.7%-0.3%-4.7%23.9%25.1%16.0%
Other Income 15883510914411380109142
Interest 7760555618371172636
Depreciation 7579747372727379102175
Exceptional Items 0000000000
Profit Before Tax 441-411,6054,67729-31520600315
Tax 5995231,627-24-512914584
Profit After Tax 39-8-501,0813,05053-25391456232
PAT Margin (%) 3.2%-0.9%-5.8%39.3%46.3%2.5%-2.0%17.7%18.5%9.7%
Adjusted EPS (₹)2.0-0.4-2.554.1158.12.8-1.320.223.612.0
Dividend Payout Ratio (%)31%0%0%30%10%181%-46%40%36%38%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 9419218721,8093,7193,4233,3993,7774,0774,145
Share Capital 40404040393939393939
Reserves 9018818321,7693,6803,3843,3603,7384,0394,106
Minority Interest0000000000
Debt828677547297666593297663741619
Long Term Debt2521571360000000
Short Term Debt576520412297666593297663741619
Trade Payables1295286246380134257448412425
Others Liabilities 591485266288304200195411258227
Total Liabilities 2,4892,1341,7722,6405,0704,3504,1485,2995,4885,417

Fixed Assets

Gross Block1,5421,6461,6661,6731,6911,7131,7131,8432,5353,118
Accumulated Depreciation6367137818449079721,0221,0881,1801,343
Net Fixed Assets9079328858307857416917551,3561,776
CWIP 108271219101373696472194
Investments 1501501501498671,1561,2611,034664996
Inventories4023712585111,3081,0055819781,4401,194
Trade Receivables4053183619731,187399289589489508
Cash Equivalents 4588557437551602682383
Others Assets514331109168347510402645386365
Total Assets 2,4892,1341,7722,6405,0704,3504,1485,2995,4885,417

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 2762491575941,488739716-141114615
PBT 441-411,6054,67729-31520600315
Adjustment 144146133120-27-3102252101
Changes in Working Capital 9411075-607-1535844749-555-390234
Tax Paid -5-8-10-523-1,627-104-2-128-148-35
Cash Flow From Investing Activity -83-29-1-9-676-275-417-183-31-205
Capex -27-31-3-14-48-110-255-359-479-320
Net Investments -52001-666-216-44145419127
Others -42143850-1183029-12
Cash Flow From Financing Activity -202-219-153-588-788-460-310344-100-324
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing -22-7910-272000000
Interest Paid -77-60-55-57-18-37-12-10-23-39
Dividend Paid -1200-120-320-2890-12-154-163
Others -91-81-108-139-451-134-29736677-122
Net Cash Flow -813-3244-1120-1786
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)4.18-0.81-5.5880.68110.371.49-0.7410.8911.65.63
ROCE (%)6.383.440.8690.73144.651.57-0.512.9713.537.33
Asset Turnover Ratio0.560.480.561.251.710.460.30.470.460.44
PAT to CFO Conversion(x)7.08N/AN/A0.550.4913.94N/A-0.360.252.65
Working Capital Days
Receivable Days1161201148860135100738076
Inventory Days1121281065150196230129179200
Payable Days1591571032141025888155171133

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 31-Oct-2024 16:01 is ₹431.9.
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 31-Oct-2024 16:01 the market cap of HEG stood at ₹8,333.7.
The latest P/E ratio of HEG as of 31-Oct-2024 16:01 is 61.02.
The latest P/B ratio of HEG as of 31-Oct-2024 16:01 is 2.01.
The 52-week high of HEG is ₹548.9 and the 52-week low is ₹310.6.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of HEG is ₹2,295 ( 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.
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