HEG Limited (HEG) AI Stock Analysis

• Market Cap: ₹98.90B
• Dividend Yield: 0.3%
• Average Volume (3M): 56.23K
• Price to Earnings (P/E): 50.2
• Beta (1Y): 1.45
• Revenue Growth: -3.91%
• EPS Growth: 0.63%
• Country: IN
• Employees: 1,075
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Electrical Equipment & Parts
• EPS (TTM): 5.43
• Shares Outstanding: 192,977,520
• 10 Day Avg. Volume: 89,538
• 30 Day Avg. Volume: 56,228
• PEG Ratio: -1.28
• Price to Book (P/B): 2.09
• Price to Sales (P/S): 4.34
• P/FCF Ratio: 95.57
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹590.00
• Price Target Upside: -0.12% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ₹634.00 ▲(7.33% Upside)

The overall stock score of 68.5 reflects a balance between strong technical indicators and a robust balance sheet against challenges in profitability and valuation concerns. The stock's bullish momentum is a significant positive, but high valuation metrics and declining financial performance metrics weigh on the score.

HEG Limited Business Overview & Revenue Model

Company Description

HEG Limited manufactures and sells graphite electrodes primarily for steel manufacturers in India. It operates through two segments, Graphite Electrodes and Power Generation. The company provides ultra-high power, high-power, and regular power grade graphite electrodes and nipples; carbon blocks; graphite specialties; and activated carbon fabric products for use in air-conditioner and air purifying filters, clean rooms, pollution control filters, anti-pollution masks, refrigerator deodorizers, and cigarette filters. It also operates two thermal power plants and a hydroelectric power facility with total power generation capacity of 76.5 MW. The company also exports its products to approximately 30 countries. HEG Limited was incorporated in 1972 and is headquartered in Noida, India.

How the Company Makes Money

HEG Limited generates revenue primarily through the sale of graphite electrodes, which are critical components used in EAFs for steel production. The company benefits from the global demand for steel, particularly in emerging markets, as well as the rising adoption of electric arc furnaces. Key revenue streams include direct sales to steel manufacturers and long-term contracts with major clients in the steel industry. Additionally, HEG has established significant partnerships with other industrial players that enhance its market reach and operational capabilities. The company's earnings are also influenced by fluctuations in raw material prices, production efficiency, and overall market demand for steel and related products.

HEG Limited Financial Statement Overview

Summary

HEG Limited's financial performance reveals a mixed picture. While the company maintains a strong balance sheet with low leverage and high equity, its income statement and cash flow metrics indicate challenges in profitability and cash generation. Declining revenue and profit margins, coupled with reduced cash flow from operations, suggest ongoing operational inefficiencies that need addressing to sustain long-term growth.

Income Statement

The company has shown a decline in total revenue over the past year, with a decrease from 23.79 billion to 21.59 billion. The gross profit margin stands at a healthy 42.8%, but the net profit margin has decreased significantly to 5.3% from 13.1% the previous year. The EBIT and EBITDA margins are also down, indicating reduced operational efficiency. Overall, the income statement reflects profitability challenges amidst declining revenues.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.13, indicating low leverage and financial stability. The equity ratio is high at 78.9%, underscoring a strong equity base. However, the return on equity has decreased to 2.6%, reflecting weaker profitability. The company's asset base remains robust, providing a cushion against potential financial risks.

Cash Flow

The cash flow from operations has decreased significantly to 2.80 billion from 6.12 billion, impacting free cash flow generation, which is now 0.97 billion. The operating cash flow to net income ratio is below 1, suggesting cash flow challenges relative to reported profits. While free cash flow remains positive, the growth rate is negative, indicating weakening cash generation ability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	22.05B	21.44B	23.80B	24.35B	21.73B	12.34B
Gross Profit	4.28B	3.74B	4.32B	7.78B	9.09B	234.56M
EBITDA	5.14B	3.78B	5.24B	8.05B	6.47B	532.41M
Net Income	1.97B	1.15B	3.12B	5.32B	4.31B	-179.38M
Balance Sheet
Total Assets	0.00	56.48B	57.01B	56.92B	53.08B	42.44B
Cash, Cash Equivalents and Short-Term Investments	5.21B	6.09B	7.12B	7.67B	12.46B	10.52B
Total Debt	0.00	5.88B	6.23B	7.43B	6.65B	2.98B
Total Liabilities	-44.54B	11.94B	12.75B	14.11B	13.94B	7.49B
Stockholders Equity	44.54B	44.54B	44.26B	42.81B	39.14B	34.95B
Cash Flow
Free Cash Flow	0.00	974.80M	2.41B	-3.66B	-5.00B	4.60B
Operating Cash Flow	0.00	2.80B	6.12B	1.13B	-1.41B	7.16B
Investing Cash Flow	0.00	-2.08B	-1.84B	-211.10M	-1.83B	-4.17B
Financing Cash Flow	0.00	-1.59B	-3.24B	-999.55M	3.44B	-3.10B

HEG Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 590.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 590.7 is above the 20-day moving average (MA) of 528.31, above the 50-day MA of 512.26, and above the 200-day MA of 473.44, indicating a bullish trend. The MACD of 15.31 indicates Negative momentum. The RSI at 76.11 is Negative, neither overbought nor oversold. The STOCH value of 92.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:HEG.

HEG Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RRKABEL	―	₹143.01B	42.42	―	0.64%	15.63%	16.30%
PRECWIRE	―	₹36.32B	37.98	―	0.51%	20.80%	20.82%
HEG	―	₹98.90B	50.24	―	0.30%	-3.91%	0.63%
GENUSPOWER	―	₹91.36B	21.25	―	0.72%	119.77%	228.13%
FINCABLES	―	₹120.51B	19.32	―	1.02%	8.79%	-15.74%
GRAPHITE	―	₹107.69B	30.00	―	1.73%	-14.81%	-66.60%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

HEG Limited Corporate Events

LNJ Bhilwara Group Acquires Full Ownership of Malana Power Company

LNJ Bhilwara Group has acquired Statkraft’s 49% minority stake in Malana Power Company Limited, making Bhilwara Energy Limited the sole owner. This acquisition enhances the Group’s renewable energy portfolio and positions it to expand in the power sale business, reinforcing its commitment to India’s clean energy future.