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HEG Limited
(HEG)
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Rating:67Neutral
Price Target:
₹223.00
▼(-65.30% Downside)
Action:Reiterated
Date:10/07/26
The score is primarily driven by mixed financial quality: a strong balance sheet and a return to revenue/profit growth are offset by inconsistent profitability and especially weak/volatile cash generation (negative 2026 free cash flow). Valuation is supportive (P/E 13.0), while technicals indicate an uptrend but only moderate momentum due to a negative MACD.
Positive Factors
Revenue and profit recovery
The return to positive revenue growth and a 3.41B profit on 25.69B of sales indicates that demand and earnings have recovered from the prior downturn. If maintained, this improves internal funding capacity and supports investment in the electrode franchise.
Negative Factors
Weak and volatile cash generation
Lower operating cash flow and negative 2026 free cash flow weaken the conversion of reported earnings into funds available for investment, debt reduction, or shareholder returns. The history of large cash-flow swings also makes internal funding less dependable across the cycle.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and profit recovery
The return to positive revenue growth and a 3.41B profit on 25.69B of sales indicates that demand and earnings have recovered from the prior downturn. If maintained, this improves internal funding capacity and supports investment in the electrode franchise.
Read all positive factors
HEG Limited (HEG) vs. iShares MSCI India ETF (INDA)
Market Cap
₹75.39B
Dividend Yield0.54%
Average Volume (3M)115.45K
Price to Earnings (P/E)13.0
Beta (1Y)1.34
Revenue Growth19.70%
EPS Growth82.32%
CountryIN
Employees1,175
SectorGeneral
Sector StrengthN/A
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)18.59
Shares Outstanding329,798,920
10 Day Avg. Volume59,092
30 Day Avg. Volume115,447
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)10.17
Revenue Forecast (FY)₹30.80B
HEG Limited Business Overview & Revenue Model
Company Description
HEG Advanced Materials Limited engages in the research and development of advanced battery materials, battery solutions. It manufactures custom machined components. The company also operates thermal power plants and a hydroelectric power facility....
How the Company Makes Money
HEG makes money mainly by manufacturing and selling graphite electrodes to steel producers, especially EAF-based steel mills that consume electrodes during melting. Revenue is generated from (1) sales of graphite electrodes (the core product line)...
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 | 3.93B | 6.06B | 8.05B | 6.47B |
| 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
241.89
Negative
227.19
Positive
216.22
Positive
Market Momentum
-7.80
Positive
50.57
Neutral
58.89
Neutral
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 227.35, above the 50-day MA of 241.89, and above the 200-day MA of 216.22, indicating a neutral trend. The MACD of -7.80 indicates Positive momentum. The RSI at 50.57 is Neutral, neither overbought nor oversold. The STOCH value of 58.89 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | ₹81.02B | 36.59 | ― | 1.43% | 12.99% | 29.07% | |
68 Neutral | ₹645.15B | 52.42 | ― | 0.39% | 23.96% | 34.01% | |
68 Neutral | ₹143.70B | 67.44 | ― | 0.95% | 22.51% | -40.67% | |
67 Neutral | ₹75.39B | 13.00 | ― | 0.54% | 19.70% | 82.32% | |
67 Neutral | ₹94.49B | 30.82 | ― | 0.08% | 27.23% | 21.70% | |
65 Neutral | ₹28.39B | 25.36 | ― | 1.39% | 26.44% | -11.83% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:HEG
HEG Limited
228.60
15.76
7.41%
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HEG Limited Corporate Events
HEG Advanced Materials Updates Website After Corporate Rebranding
Sep 6, 2026
HEG Advanced Materials Limited has updated its corporate website address from www.hegltd.com to www.hegadvancedmaterials.com following its recent name change. The first phase of the new site is live and accessible, reflecting the company’s e...
HEG Schedules Analyst Visit to REPLUS Giga Factory in Pune
Aug 27, 2026
HEG Limited has announced a scheduled plant visit for analysts and institutional investors to the REPLUS Giga Factory in Village Bavada, Pune, Maharashtra, owned by RePlus Engitech Private Limited, a subsidiary of Bhilwara Energy Limited. The visi...
HEG Opens Special Window for Legacy Share Transfers, Urges KYC Update
Aug 22, 2026
HEG Limited has published notices in national and regional newspapers outlining a special window, effective from February 5, 2026 to February 4, 2027, for shareholders to lodge or re-lodge requests for transfer and dematerialisation of physical sh...
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...
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.