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HEG Ltd
NSE:HEG

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HEG Ltd
NSE:HEG
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Price: 1 846.8 INR 0.25% Market Closed
Updated: Mar 28, 2024

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%.

Key Points:
HEG Intrinsic Value
Base Case
2 135.99 INR
Undervaluation 14%
Intrinsic Value
Price
H
Worst Case
Base Case
Best Case

Valuation Backtest
HEG Ltd

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Fundamental Analysis

Company Faces Revenue Dip, EBITDA Slump
2024-Q3 Earnings Call

Company Faces Revenue Dip, EBITDA Slump

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.

Financials

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
Efficiency

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

Last Value
3-Years Average
FCF Margin
Conversion Rate
History
Components
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Fundamental Scores

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.

Positive Gross Profit
Exceptional 3-Years Revenue Growth
ROE is Increasing
ROIC is Increasing
56/100
Profitability
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.

High Altman Z-Score
Long-Term Solvency
Low D/E
Short-Term Solvency
75/100
Solvency
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

Wall Street analysts forecast HEG stock price to rise over the next 12 months.

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.

Lowest
Price Target
2 323 INR
26% Upside
Average
Price Target
2 346 INR
27% Upside
Highest
Price Target
2 415 INR
31% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Shareholder Return

HEG Price
HEG Ltd

1M 1M
+14%
6M 6M
+8%
1Y 1Y
+99%
3Y 3Y
+32%
5Y 5Y
-3%
10Y 10Y
+991%
Annual Price Range
1 846.8
52w Low
920.7
52w High
1 955
Price Metrics
Average Annual Return -1.37%
Standard Deviation of Annual Returns 61.67%
Max Drawdown -79%
Shares Statistics
Market Capitalization 71.3B INR
Shares Outstanding 38 577 700
Percentage of Shares Shorted
N/A

HEG Return Decomposition
Main factors of price return

What is price return decomposition?

Company Profile

HEG Ltd

Country

India

Industry

Electrical Equipment

Market Cap

71.3B INR

Dividend Yield

0%

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

UTTAR PRADESH
Noida
Bhilwara Towers, A-12, Sector-1
+911204390300
http://hegltd.com/

IPO

1994-11-30

Employees

837

Officers

Chairman, MD & CEO
Mr. Ravi Jhunjhunwala B.Com (H), MBA
Chief Financial Officer
Mr. Gulshan Kumar Sakhuja
COO, Chief Marketing Officer & Whole Time Director
Mr. Manish Gulati
Compliance Officer & Company Secretary
Mr. Vivek Chaudhary
Chief Human Resource Officer
Mr. Sudhir Sood
Group Chief Financial Officer
Mr. Om Prakash Ajmera

See Also

Discover More
What is the Intrinsic Value of one HEG stock?

The intrinsic value of one HEG stock under the Base Case scenario is 2 135.99 INR.

Is HEG stock undervalued or overvalued?

Compared to the current market price of 1 846.8 INR, HEG Ltd is Undervalued by 14%.