ScoreWhy is HEG Ltd ?
1
Company has a Debt to Equity ratio (avg) of 0.01 times
2
Flat results in Jun 26
- PAT(Latest six months) At Rs 3.54 cr has Grown at -88.89%
- OPERATING CF(Y) Lowest at Rs 213.20 Cr
- DPR(Y) Lowest at 19.22%
3
With ROE of 7, it has a Very Expensive valuation with a 2.7 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 29.65%, its profits have risen by 79.2% ; the PEG ratio of the company is 0.5
4
Falling Participation by Institutional Investors
- Institutional investors have decreased their stake by -1.12% over the previous quarter and collectively hold 17.74% of the company
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors
5
Market Beating performance in long term as well as near term
- Along with generating 29.65% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to HEG should be less than 10%
- Overall Portfolio exposure to Electrodes & Refractories should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electrodes & Refractories)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is HEG for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
HEG
29.65%
0.73
40.53%
Sensex
-2.63%
-0.19
13.57%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
12.93%
EBIT Growth (5y)
25.22%
EBIT to Interest (avg)
14.68
Debt to EBITDA (avg)
2.03
Net Debt to Equity (avg)
0.03
Sales to Capital Employed (avg)
0.46
Tax Ratio
19.84%
Dividend Payout Ratio
19.22%
Pledged Shares
0
Institutional Holding
17.74%
ROCE (avg)
6.21%
ROE (avg)
8.03%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
37
Industry P/E
42
Price to Book Value
2.73
EV to EBIT
246.34
EV to EBITDA
49.96
EV to Capital Employed
2.68
EV to Sales
4.98
PEG Ratio
0.46
Dividend Yield
0.77%
ROCE (Latest)
0.10%
ROE (Latest)
6.99%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
PBT LESS OI(Q)
At Rs 121.52 cr has Grown at 560.4% (vs previous 4Q average
PAT(Q)
At Rs 122.34 cr has Grown at 47.2% (vs previous 4Q average
DEBTORS TURNOVER RATIO(HY)
Highest at 5.15 times
PBDIT(Q)
Highest at Rs 150.58 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 22.12%
-9What is not working for the Company
PAT(Latest six months)
At Rs 3.54 cr has Grown at -88.89%
OPERATING CF(Y)
Lowest at Rs 213.20 Cr
DPR(Y)
Lowest at 19.22%
DEBT-EQUITY RATIO(HY)
Highest at 0.17 times
Loading Valuation Snapshot...
Here's what is working for HEG
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 121.52 cr has Grown at 560.4% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 18.40 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 122.34 cr has Grown at 47.2% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 83.11 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 150.58 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 22.12%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Debtors Turnover Ratio- Half Yearly
Highest at 5.15 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for HEG
Operating Cash Flow - Annually
Lowest at Rs 213.20 Cr and Fallen
each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (Rs Cr)
Debt-Equity Ratio - Half Yearly
Highest at 0.17 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Dividend Payout Ratio (DPR) - Annually
Lowest at 19.22%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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