ScoreWhy is HEG Ltd ?
1
Company has a low Debt to Equity ratio (avg) at 0 times
2
Poor long term growth as Operating profit has grown by an annual rate 16.57% of over the last 5 years
3
With a growth in Operating Profit of 5.92%, the company declared Very Positive results in Dec 25
- The company has declared positive results for the last 3 consecutive quarters
- NET SALES(Latest six months) At Rs 1,355.55 cr has Grown at 29.60%
- OPERATING PROFIT TO INTEREST(Q) Highest at 15.16 times
- PBDIT(Q) Highest at Rs 142.34 cr.
4
With ROE of 5.5, 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 18.07%, its profits have risen by 72.1% ; the PEG ratio of the company is 0.4
5
High Institutional Holdings at 20.67%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 0.72% over the previous quarter.
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
17.76%
0.46
38.99%
Sensex
-5.18%
-0.40
13.03%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
15.00%
EBIT Growth (5y)
16.57%
EBIT to Interest (avg)
15.95
Debt to EBITDA (avg)
1.18
Net Debt to Equity (avg)
-0.03
Sales to Capital Employed (avg)
0.45
Tax Ratio
17.83%
Dividend Payout Ratio
6.04%
Pledged Shares
0
Institutional Holding
20.67%
ROCE (avg)
5.66%
ROE (avg)
7.68%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
29
Industry P/E
30
Price to Book Value
2.37
EV to EBIT
114.84
EV to EBITDA
35.25
EV to Capital Employed
2.41
EV to Sales
4.35
PEG Ratio
0.40
Dividend Yield
0.31%
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
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend29What is working for the Company
NET SALES(Latest six months)
At Rs 1,355.55 cr has Grown at 29.60%
OPERATING PROFIT TO INTEREST(Q)
Highest at 15.16 times
PBDIT(Q)
Highest at Rs 142.34 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 21.69%
PBT LESS OI(Q)
Highest at Rs 144.19 cr.
PAT(Q)
Highest at Rs 206.97 cr.
EPS(Q)
Highest at Rs 10.72
-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 41.42 % 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 144.19 cr has Grown at 26926.0% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs -0.54 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 206.97 cr has Grown at 221.0% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 64.47 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 15.16 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales - Latest six months
At Rs 1,355.55 cr has Grown at 29.60%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 142.34 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 21.69%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 144.19 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 206.97 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 10.72
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 41.42 % 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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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