HEG Ltd
NSE:HEG
Intrinsic Value
HEG Ltd. engages in the manufacture and export of graphite electrodes. [ Read More ]
The intrinsic value of one HEG stock under the Base Case scenario is 2 135.99 INR. Compared to the current market price of 1 846.8 INR, HEG Ltd is Undervalued by 14%.
Valuation Backtest
HEG Ltd
Run backtest to discover the historical profit from buying and selling HEG stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
Company Faces Revenue Dip, EBITDA Slump
2024-Q3 Earnings Call
In the latest quarter, the company experienced an 8.5% revenue decrease from the previous quarter, with EBITDA falling to INR 110 crores from INR 130 crores, and net profit after tax declining to INR 37 crores from INR 62 crores. Despite this contraction, sales volume is expected to grow by 10-12% compared to last year. The company remains debt-free with a treasury of INR 950 crores. Profit margins are affected by declining product spreads due to a lag in the alignment of input costs and product prices. Moreover, stagnant steel production has kept electric arc furnace output consistent with no growth. Looking ahead, the company plans to invest INR 2,000 crores in a new business, targeting a start in March or April 2025, forecasting a 25-30% EBITDA margin for this venture.
Balance Sheet Decomposition
HEG Ltd
Current Assets | 26.2B |
Cash & Short-Term Investments | 7.7B |
Receivables | 4.4B |
Other Current Assets | 14.2B |
Non-Current Assets | 30.5B |
Long-Term Investments | 9.2B |
PP&E | 19.5B |
Intangibles | 7.3m |
Other Non-Current Assets | 1.8B |
Current Liabilities | 12.3B |
Accounts Payable | 4B |
Short-Term Debt | 6.8B |
Other Current Liabilities | 1.5B |
Non-Current Liabilities | 1B |
Long-Term Debt | 18.5m |
Other Non-Current Liabilities | 1B |
Earnings Waterfall
HEG Ltd
Revenue
|
24.6B
INR
|
Cost of Revenue
|
-14.4B
INR
|
Gross Profit
|
10.3B
INR
|
Operating Expenses
|
-7.2B
INR
|
Operating Income
|
3.1B
INR
|
Other Expenses
|
727.8m
INR
|
Net Income
|
3.8B
INR
|
Free Cash Flow Analysis
HEG Ltd
What is Free Cash Flow?
HEG Profitability Score
Profitability Due Diligence
HEG Ltd's profitability score is 56/100. The higher the profitability score, the more profitable the company is.
Score
HEG Ltd's profitability score is 56/100. The higher the profitability score, the more profitable the company is.
HEG Solvency Score
Solvency Due Diligence
HEG Ltd's solvency score is 75/100. The higher the solvency score, the more solvent the company is.
Score
HEG Ltd's solvency score is 75/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
HEG Price Targets Summary
HEG Ltd
According to Wall Street analysts, the average 1-year price target for HEG is 2 346 INR with a low forecast of 2 323 INR and a high forecast of 2 415 INR.
Shareholder Return
HEG Price
HEG Ltd
Average Annual Return | -1.37% |
Standard Deviation of Annual Returns | 61.67% |
Max Drawdown | -79% |
Market Capitalization | 71.3B INR |
Shares Outstanding | 38 577 700 |
Percentage of Shares Shorted |
N/A
|
Company Profile
Country
Industry
Market Cap
Dividend Yield
Description
HEG Ltd. engages in the manufacture and export of graphite electrodes. The company is headquartered in Noida, Uttar Pradesh and currently employs 837 full-time employees. The firm's segments include Graphite electrodes (including other carbon products) and Power. The Graphite electrodes are used in steelmaking through the Electric Arc Furnace (EAF) route which is in steel making about 1.5-2.0 kg of graphite electrode. The Power generation is comprised of two thermal power plants and a hydroelectric power facility for its graphite electrode. The firm also operates approximately three power generation facilities with a total rated capacity of over 77 megawatt (MW). Its power plants are located in Tawanagar, District Hoshangabad, Madhya Pradesh, and it also operates approximately 12.8-MW waste heat recovery power plant in District Durg, Chhattisgarh.
Contact
IPO
Employees
Officers
The intrinsic value of one HEG stock under the Base Case scenario is 2 135.99 INR.
Compared to the current market price of 1 846.8 INR, HEG Ltd is Undervalued by 14%.