ScoreWhy is HEG Ltd ?
1
Company has a low Debt to Equity ratio (avg) at 0 times
2
Poor long term growth as Net Sales has grown by an annual rate of 12.03% and Operating profit at 15.53% over the last 5 years
3
With a growth in Net Profit of 53.77%, the company declared Very Positive results in Sep 25
- The company has declared positive results for the last 2 consecutive quarters
- PAT(Q) At Rs 143.33 cr has Grown at 191.3% (vs previous 4Q average)
- OPERATING PROFIT TO INTEREST(Q) Highest at 13.27 times
- NET SALES(Q) Highest at Rs 699.22 cr
4
With ROE of 5.5, it has a Very Expensive valuation with a 2.2 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 -10.70%, its profits have risen by 41.8% ; the PEG ratio of the company is 0.9
5
Increasing Participation by Institutional Investors
- Institutional investors have increased their stake by 1.05% over the previous quarter and collectively hold 19.95% of the company
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors
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, Low Return
Absolute
Risk Adjusted
Volatility
HEG
-10.7%
-0.26
41.08%
Sensex
4.83%
0.41
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
12.03%
EBIT Growth (5y)
15.53%
EBIT to Interest (avg)
15.96
Debt to EBITDA (avg)
1.18
Net Debt to Equity (avg)
-0.03
Sales to Capital Employed (avg)
0.45
Tax Ratio
23.40%
Dividend Payout Ratio
6.04%
Pledged Shares
0
Institutional Holding
19.95%
ROCE (avg)
5.66%
ROE (avg)
7.68%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
39
Industry P/E
41
Price to Book Value
2.16
EV to EBIT
275.53
EV to EBITDA
40.21
EV to Capital Employed
2.20
EV to Sales
4.27
PEG Ratio
0.94
Dividend Yield
0.34%
ROCE (Latest)
0.80%
ROE (Latest)
5.53%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend23What is working for the Company
PAT(Q)
At Rs 143.33 cr has Grown at 191.3% (vs previous 4Q average
OPERATING PROFIT TO INTEREST(Q)
Highest at 13.27 times
NET SALES(Q)
Highest at Rs 699.22 cr
PBDIT(Q)
Highest at Rs 118.35 cr.
PBT LESS OI(Q)
Highest at Rs 62.94 cr.
EPS(Q)
Highest at Rs 7.43
-3What is not working for the Company
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 126.32 cr
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.15 times
NON-OPERATING INCOME(Q)
is 64.08 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for HEG
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 62.94 cr has Grown at 4788.3% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs -1.34 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 143.33 cr has Grown at 191.3% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 49.21 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 13.27 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales - Quarterly
Highest at Rs 699.22 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 699.22 cr has Grown at 26.8% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 551.29 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 118.35 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 62.94 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 143.33 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 7.43
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for HEG
Non Operating Income - Quarterly
is 64.08 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 126.32 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debtors Turnover Ratio- Half Yearly
Lowest at 4.15 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Non Operating Income - Quarterly
Highest at Rs 112.29 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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