ScoreWhy is HEG Ltd ?
1
Company has a Debt to Equity ratio (avg) of 0.01 times
2
Poor long term growth as Operating profit has grown by an annual rate 15.28% of over the last 5 years
3
Flat results in Mar 26
- PAT(Q) At Rs -118.80 cr has Fallen at -222.9% (vs previous 4Q average)
- OPERATING PROFIT TO INTEREST (Q) Lowest at -13.83 times
- DEBT-EQUITY RATIO(HY) Highest at 0.17 times
4
With ROE of 7.1, it has a Very Expensive valuation with a 2.4 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 37.52%, its profits have risen by 180.7% ; the PEG ratio of the company is 0.2
5
Falling Participation by Institutional Investors
- Institutional investors have decreased their stake by -1.81% over the previous quarter and collectively hold 18.86% of the company
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors
6
Market Beating performance in long term as well as near term
- Along with generating 37.52% 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
37.52%
0.88
42.65%
Sensex
-3.74%
-0.28
13.48%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
15.44%
EBIT Growth (5y)
15.28%
EBIT to Interest (avg)
16.93
Debt to EBITDA (avg)
2.03
Net Debt to Equity (avg)
0.03
Sales to Capital Employed (avg)
0.46
Tax Ratio
16.71%
Dividend Payout Ratio
6.04%
Pledged Shares
0
Institutional Holding
18.86%
ROCE (avg)
6.21%
ROE (avg)
8.05%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
34
Industry P/E
39
Price to Book Value
2.41
EV to EBIT
2442.90
EV to EBITDA
53.34
EV to Capital Employed
2.37
EV to Sales
4.52
PEG Ratio
0.19
Dividend Yield
0.30%
ROCE (Latest)
0.10%
ROE (Latest)
7.07%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend16What is working for the Company
PAT(9M)
At Rs 231.74 cr has Grown at 139.27%
NET SALES(9M)
At Rs 1,958.10 cr has Grown at 23.73%
DEBTORS TURNOVER RATIO(HY)
Highest at 5.16 times
-14What is not working for the Company
PAT(Q)
At Rs -118.80 cr has Fallen at -222.9% (vs previous 4Q average
OPERATING PROFIT TO INTEREST (Q)
Lowest at -13.83 times
DEBT-EQUITY RATIO(HY)
Highest at 0.17 times
PBDIT(Q)
Lowest at Rs -148.29 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at -24.58%
PBT LESS OI(Q)
Lowest at Rs -189.86 cr.
EPS(Q)
Lowest at Rs -5.89
Loading Valuation Snapshot...
Here's what is working for HEG
Net Sales - Latest six months
At Rs 1,258.88 cr has Grown at 24.03%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Highest at 5.16 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
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs -189.86 cr has Fallen at -622.9% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 36.31 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs -118.80 cr has Fallen at -222.9% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 96.63 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Operating Profit to Interest - Quarterly
Lowest at -13.83 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit (PBDIT) - Quarterly
Lowest at Rs -148.29 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at -24.58%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs -189.86 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs -5.89
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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