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HEG Limited
(HEG)
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Rating:64Neutral
Price Target:
₹734.00
▲(14.22% Upside)
Action:Reiterated
Date:08/06/26
The score is primarily driven by mixed financial quality: a solid balance sheet and improved 2026 profitability are offset by weak and volatile cash flow (negative 2026 free cash flow). Technicals are supportive with a clear uptrend, but overbought signals temper the outlook. Valuation is the main headwind due to a high P/E and low dividend yield.
Positive Factors
Profitability and Revenue Rebound
The return to positive revenue growth and stronger net income indicates recovering demand and operating performance. If sustained, this rebound can improve internal funding capacity and reinforce HEG’s position in its core electrode business.
Negative Factors
Weak and Unreliable Cash Conversion
Weak operating cash flow and negative free cash flow reduce the company’s ability to self-fund expansion, dividends, or debt reduction. The history of large cash-flow swings suggests working-capital and capital-spending needs may remain difficult to predict.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability and Revenue Rebound
The return to positive revenue growth and stronger net income indicates recovering demand and operating performance. If sustained, this rebound can improve internal funding capacity and reinforce HEG’s position in its core electrode business.
Read all positive factors
HEG Limited (HEG) vs. iShares MSCI India ETF (INDA)
Market Cap
₹140.69B
Dividend Yield0.47%
Average Volume (3M)112.28K
Price to Earnings (P/E)39.0
Beta (1Y)1.46
Revenue Growth19.70%
EPS Growth82.32%
CountryIN
Employees1,175
SectorGeneral
Sector StrengthN/A
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)18.59
Shares Outstanding192,977,520
10 Day Avg. Volume121,432
30 Day Avg. Volume112,280
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)2.20
Price to Sales (P/S)4.07
P/FCF Ratio-159.87
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)10.33
Revenue Forecast (FY)₹31.20B
HEG Limited Business Overview & Revenue Model
Company Description
HEG Limited manufactures and sells graphite electrodes in India and internationally. The company operates through two segments, Graphite Electrodes and Power Generation segments. It provides ultra-high power and high power electrodes; graphite ele...
How the Company Makes Money
HEG primarily makes money by manufacturing and selling graphite electrodes. Revenue is generated from (a) sales of graphite electrodes in different grades and sizes to steel producers that use electric arc furnaces, and (b) sales of related graphi...
HEG Limited Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 26.40B | 25.68B | 21.44B | 23.80B | 24.35B | 21.73B |
| Gross Profit | 10.37B | 7.99B | 7.37B | 7.55B | 10.16B | 9.09B |
| EBITDA | 7.53B | 4.17B | 3.92B | 6.05B | 8.05B | 6.46B |
| Net Income | 3.59B | 3.41B | 1.15B | 3.12B | 5.32B | 4.31B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 61.66B | 56.48B | 57.01B | 56.92B | 53.08B |
| Cash, Cash Equivalents and Short-Term Investments | 6.36B | 6.53B | 6.09B | 7.12B | 7.67B | 12.46B |
| Total Debt | 0.00 | 7.96B | 5.88B | 6.23B | 7.43B | 6.65B |
| Total Liabilities | -47.58B | 14.08B | 11.94B | 12.75B | 14.11B | 13.94B |
| Stockholders Equity | 47.58B | 47.58B | 44.54B | 44.26B | 42.81B | 39.14B |
Cash Flow | ||||||
| Free Cash Flow | 1.66B | -654.70M | 974.80M | 2.41B | -3.66B | -5.00B |
| Operating Cash Flow | 2.42B | 1.87B | 2.80B | 6.12B | 1.13B | -1.41B |
| Investing Cash Flow | -2.41B | -2.83B | -2.08B | -1.84B | -211.10M | -1.83B |
| Financing Cash Flow | -221.80M | 860.70M | -1.59B | -3.24B | -999.55M | 3.44B |
HEG Limited Technical Analysis
Positive
642.60
Price Trends
233.22
Positive
222.14
Positive
209.47
Positive
Market Momentum
7.48
Positive
61.72
Neutral
-782.72
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HEG, the sentiment is Positive. The current price of 642.6 is above the 20-day moving average (MA) of 258.05, above the 50-day MA of 233.22, and above the 200-day MA of 209.47, indicating a bullish trend. The MACD of 7.48 indicates Positive momentum. The RSI at 61.72 is Neutral, neither overbought nor oversold. The STOCH value of -782.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:HEG.
HEG Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ₹93.70B | 42.04 | ― | 1.23% | 12.99% | 29.07% | |
68 Neutral | ₹729.09B | 59.28 | ― | 0.29% | 23.96% | 34.01% | |
64 Neutral | ₹140.69B | 39.03 | ― | 0.47% | 19.70% | 82.32% | |
64 Neutral | ₹90.26B | 34.79 | ― | 0.07% | 14.60% | -1.12% | |
61 Neutral | ₹143.40B | 67.43 | ― | 0.98% | 22.51% | -40.67% | |
56 Neutral | ₹25.88B | 23.04 | ― | 1.56% | 18.29% | -18.73% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:HEG
HEG Limited
729.05
240.76
49.31%
IN:APARINDS
APAR Industries Limited
17,735.30
9,914.45
126.77%
IN:BBL
Bharat Bijlee Limited
2,237.90
-770.26
-25.61%
IN:ESABINDIA
Esab India Limited
6,083.45
1,059.34
21.09%
IN:GRAPHITE
Graphite India Limited
716.55
206.70
40.54%
IN:TARIL
Transformers and Rectifiers (India) Limited
299.80
-196.65
-39.61%
HEG Limited Corporate Events
HEG Wins NCLT Nod for Demerger Into Two Listed Entities
Aug 19, 2026
HEG Limited has secured approval from the National Company Law Tribunal’s Indore Bench for a Composite Scheme of Arrangement involving HEG Limited, HEG Graphite Limited and Bhilwara Energy Limited. The order, once made effective through regu...
HEG to Engage Investors at Motilal Oswal Global Conference in Mumbai
Aug 6, 2026
HEG Limited has announced that its senior management will participate in the Motilal Oswal 22nd Annual Global Investor Conference in Mumbai on August 19, 2026, engaging in one-to-one and group meetings in a physical format. Discussions will be bas...
HEG Limited Receives Updated Crisil ESG 57 Rating
Aug 4, 2026
HEG Limited operates in the electrodes and refractories sector, with its primary business focused on manufacturing graphite electrodes used in electric arc furnaces for steelmaking and other industrial applications. The company is listed on both B...
HEG to Host Regulated Plant Visit for Analysts and Institutional Investors
Jul 29, 2026
HEG Limited, a major graphite electrode and carbon products manufacturer serving heavy industries such as steel, operates key production and research facilities at Mandideep in Madhya Pradesh. The company emphasizes compliance with securities regu...
HEG Limited Publishes Q1 FY27 Earnings Call Transcript for Investors
Jul 28, 2026
HEG Limited has released the transcript of its Q1 FY27 earnings conference call, held on July 24, 2026, and made it available to investors via the company’s website and stock exchange filings. The call featured senior leadership across finan...
HEG to Highlight Greentech Strategy in Mumbai Investor Roadshow
Jul 10, 2026
HEG Limited has scheduled a series of physical institutional investor meetings and a non-deal roadshow in Mumbai on July 15 and 16, 2026, engaging around a dozen leading fund houses and institutional investment firms. The interactions will center ...
HEG Files SEBI Demat Compliance Certificate for June Quarter
Jul 1, 2026
HEG Limited has filed a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended June 30, 2026, as confirmed by its registrar and share transfer agent, MCS Share Transfer Age...
HEG sets 54th AGM via video link and proposes final dividend for FY26
Jun 27, 2026
HEG Limited has scheduled its 54th Annual General Meeting for 29 July 2026 at noon IST, to be conducted via video conferencing and other audio-visual means without physical attendance. The AGM notice and the annual report for FY 2025-26, including...
HEG Sets July 29 Virtual AGM, Aligns Key Dates for Voting and Dividend
Jun 22, 2026
HEG Limited has scheduled its 54th Annual General Meeting for 29 July 2026 at 12:00 p.m. IST, to be conducted exclusively through video conferencing and other audio-visual means, with the company’s registered office in Mandideep, Madhya Prad...
HEG sets fully virtual 54th AGM and key dates for dividend and e-voting
Jun 22, 2026
HEG Limited has scheduled its 54th Annual General Meeting for 29 July 2026 at 12:00 p.m. IST, to be conducted exclusively via video conferencing and other audio-visual means, with the company’s registered office in Mandideep deemed as the ve...
HEG Limited announces resignation of non-executive director Vinita Singhania
Jun 21, 2026
HEG Limited has announced that non-executive, non-independent director Vinita Singhania has resigned from its board, effective 21 June 2026. The company has notified the stock exchanges of the change in line with SEBI’s Listing Obligations a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.