HEG Ltd
HEG Ltd
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BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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47 extracted metrics + investor summaries across FY13–FY27.
Tapetide Score
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Technical Indicators
Key Insights
Strengths
1- Company has been maintaining a healthy dividend payout of 25.8%
Weaknesses
3- Stock is trading at 2.74 times its book value
- Company has a low return on equity of 5.73% over last 3 years.
- Earnings include an other income of Rs.432 Cr.
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 6d agoHEG Ltd, a graphite electrode manufacturer, trades at a market cap of Rs.13,161 Cr with a P/E of 36.9x and P/B of 2.78x. The company delivered 80% TTM profit growth and 20% TTM sales growth, but its 3-year ROE averages only 6%, and earnings quality is clouded by Rs.432 Cr of other income.
- TTM profit growth of 80% signals a strong cyclical recovery in graphite electrode demand
- TTM sales growth of 20% indicates improving top-line momentum after a flat 3-year CAGR of just 1%
- 10-year compounded profit CAGR of 63% demonstrates the company's ability to generate outsized returns during upcycles
- Stock has delivered 30% returns over 1 year, reflecting market recognition of improving fundamentals
- 10-year stock CAGR of 35% shows strong long-term wealth creation track record
- Healthy dividend payout ratio of 25.8% provides some income to shareholders even through cycles
- 10-year sales CAGR of 11% and 10-year ROE of 17% indicate a structurally sound business over full cycles
- 3-year ROE of only 6% is well below cost of equity, indicating poor capital efficiency through the recent downcycle
- Earnings include Rs.432 Cr of other income, raising questions about the quality and sustainability of reported profits
- P/E of 36.9x is elevated for a cyclical industrial company, leaving limited margin of safety if earnings disappoint
- 3-year compounded profit CAGR of -14% shows earnings were declining until the recent TTM recovery
- P/B of 2.78x is high relative to an ROE of just 5.73% over the last 3 years, implying the market is pricing in future earnings that have not yet materialized consistently
- 3-year sales CAGR of only 1% highlights the highly cyclical and volatile nature of graphite electrode demand
- Dividend yield of just 0.5% offers minimal downside protection at current valuations
- 5-year stock CAGR of only 8% versus 10-year CAGR of 35% suggests the recent decade's returns were heavily front-loaded during the 2017-18 supercycle
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 3h ago- U.S. countervailing duty at 6.99% Jul 28
U.S. Department of Commerce set a preliminary 6.99% countervailing duty rate on HEG citing unfair subsidies. Final decision due December 8, 2026, potentially impacting U.S. export competitiveness.
- Needle coke prices up 10-15% Jul 23
HEG signaled 10-15% rise in needle coke prices, a key raw material in graphite electrode manufacturing. This could pressure margins if not passed through to customers.
- Insider buying by two directors Aug 11
Independent Director Sandip Somany bought 30,000 shares on Aug 11 and Dr. Nand Gopal Khaitan bought 5,000 shares worth ₹33.31 lakh on Aug 3, signaling management confidence.
- ₹3.40 final dividend declared Jul 29
Shareholders approved ₹3.40 per share final dividend for FY25-26 at the 54th AGM on July 29, 2026. Executive Director Manish Gulati was also re-appointed.
- Adfactors PR partnership signed Aug 13
HEG formalised a media and public relations engagement with Adfactors PR to support corporate communications.
- Multiple investor roadshows planned Aug 4
HEG scheduled institutional investor meetings in Dubai and Abu Dhabi (Aug 12-13), Mumbai (Aug 3-4), and at Motilal Oswal's 22nd Annual Global Investor Conference (Aug 19).
- Analyst plant visit at Mandideep Jul 29
Closed-group analyst and institutional investor plant visit organized by 360 ONE Capital at HEG's Mandideep facility on August 7, 2026.
- Shareholders urged to demat shares Jul 29
HEG advised physical shareholders to update KYC and dematerialize shares before the Record Date for the HEG Graphite Limited spin-off under the Composite Scheme of Arrangement.
- Q1 FY27 earnings call held Jul 21
HEG held Q1 FY27 earnings conference call on July 24, 2026 at 14:00 IST. Audio recording subsequently published on company website.
TL;DR: HEG is actively engaging investors through multiple roadshows, plant visits, and conferences, while insider buying by two independent directors signals board-level confidence. Key risks include a preliminary 6.99% U.S. countervailing duty (final ruling Dec 2026) and anticipated 10-15% rise in needle coke costs pressuring input margins. The trend is mixed — strong shareholder engagement and capital return via dividend offset by emerging trade and cost headwinds that bear watching into H2 FY27.
Quarterly Results
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 671 | 614 | 562 | 547 | 571 | 568 | 478 | 537 | 613 | 699 | 656 | 603 | 681 |
| Expenses | 520 | 512 | 476 | 506 | 533 | 471 | 411 | 598 | 507 | 581 | 513 | 752 | 530 |
| Operating Profit | 151 | 102 | 87 | 41 | 39 | 97 | 67 | -61 | 106 | 118 | 143 | -148 | 151 |
| OPM % | 23% | 17% | 15% | 8% | 7% | 17% | 14% | -11% | 17% | 17% | 22% | -25% | 22% |
| Other Income | 68 | 63 | 30 | 64 | 41 | 63 | 112 | 43 | 82 | 120 | 167 | 72 | 74 |
| Interest | 9 | 9 | 10 | 9 | 8 | 9 | 9 | 12 | 8 | 9 | 9 | 11 | 10 |
| Depreciation | 38 | 38 | 47 | 50 | 48 | 48 | 51 | 55 | 53 | 54 | 54 | 53 | 50 |
| PBT | 172 | 118 | 59 | 46 | 24 | 103 | 119 | -85 | 126 | 175 | 246 | -140 | 165 |
| Tax % | 19% | 18% | 27% | 29% | 3% | 20% | 30% | -13% | 17% | 18% | 16% | -19% | 26% |
| Net Profit | 139 | 96 | 44 | 33 | 23 | 82 | 83 | -74 | 105 | 143 | 207 | -114 | 122 |
| EPS in Rs | 7.21 | 4.97 | 2.26 | 1.71 | 1.19 | 4.26 | 4.32 | -3.82 | 5.43 | 7.43 | 10.73 | -5.9 | 6.34 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,228 | 870 | 859 | 2,748 | 6,591 | 2,145 | 1,254 | 2,201 | 2,463 | 2,393 | 2,151 | 2,568 | 2,639 |
| Expenses | 1,046 | 733 | 778 | 1,027 | 1,930 | 2,150 | 1,308 | 1,670 | 1,844 | 2,011 | 1,891 | 2,169 | 2,376 |
| Operating Profit | 182 | 137 | 81 | 1,721 | 4,662 | -5 | -53 | 530 | 619 | 382 | 260 | 399 | 263 |
| OPM % | 15% | 16% | 9% | 63% | 71% | -0.2% | -4.2% | 24% | 25% | 16% | 12% | 16% | 10% |
| Other Income | 15 | 4 | 7 | 12 | 106 | 143 | 114 | 117 | 187 | 223 | 141 | 259 | 432 |
| Interest | 77 | 60 | 55 | 56 | 18 | 37 | 11 | 7 | 26 | 36 | 39 | 37 | 39 |
| Depreciation | 75 | 79 | 74 | 73 | 72 | 72 | 73 | 79 | 102 | 175 | 201 | 213 | 210 |
| PBT | 44 | 1 | -41 | 1,605 | 4,677 | 29 | -23 | 560 | 677 | 395 | 162 | 408 | 446 |
| Tax % | 12% | 886% | 23% | 33% | 35% | -82% | -23% | 23% | 21% | 21% | 29% | 16% | — |
| Net Profit | 36 | 4 | -44 | 1,099 | 3,026 | 68 | -18 | 431 | 532 | 312 | 115 | 341 | 359 |
| EPS in Rs | 1.82 | 0.22 | -2.21 | 55.02 | 157 | 3.5 | -0.93 | 22.33 | 27.59 | 16.15 | 5.96 | 17.69 | 18.6 |
| Div. Payout % | 33% | 0% | 0% | 29% | 10% | 143% | -65% | 36% | 31% | 28% | 30% | 19% | — |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 40 | 40 | 40 | 40 | 39 | 39 | 39 | 39 | 39 | 39 | 39 | 39 |
| Reserves | 974 | 956 | 913 | 1,868 | 3,755 | 3,473 | 3,456 | 3,875 | 4,242 | 4,387 | 4,415 | 4,719 |
| Borrowings | 917 | 782 | 684 | 297 | 667 | 594 | 298 | 665 | 743 | 623 | 588 | 796 |
| Other Liabilities | 315 | 176 | 216 | 534 | 684 | 332 | 451 | 730 | 668 | 653 | 607 | 612 |
| Total Liabilities | 2,246 | 1,953 | 1,853 | 2,739 | 5,144 | 4,438 | 4,244 | 5,308 | 5,692 | 5,701 | 5,648 | 6,166 |
| Fixed Assets | 907 | 932 | 889 | 833 | 788 | 745 | 694 | 763 | 1,363 | 1,816 | 1,938 | 1,788 |
| CWIP | 108 | 27 | 1 | 2 | 19 | 101 | 373 | 696 | 472 | 212 | 71 | 224 |
| Investments | 223 | 227 | 231 | 248 | 942 | 1,245 | 1,358 | 1,171 | 859 | 1,200 | 1,400 | 1,478 |
| Other Assets | 1,009 | 767 | 732 | 1,656 | 3,396 | 2,348 | 1,819 | 2,678 | 2,998 | 2,474 | 2,238 | 2,676 |
| Total Assets | 2,246 | 1,953 | 1,853 | 2,739 | 5,144 | 4,438 | 4,244 | 5,308 | 5,692 | 5,701 | 5,648 | 6,166 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 276 | 249 | 157 | 594 | 1,488 | 739 | 716 | -141 | 113 | 612 | 280 | 213 |
| Investing | -83 | -29 | -1 | -9 | -676 | -275 | -417 | -183 | -21 | -184 | -207 | -320 |
| Financing | -202 | -219 | -153 | -588 | -788 | -460 | -310 | 344 | -100 | -324 | -159 | 97 |
| Net Cash Flow | -8 | 1 | 3 | -3 | 24 | 4 | -11 | 20 | -8 | 104 | -86 | -10 |
| Free Cash Flow | 249 | 218 | 154 | 580 | 1,441 | 503 | 460 | -499 | -364 | 244 | 102 | -35 |
| CFO/OP | 155 | 188 | 205 | 65 | 67 | -17,020 | -1,349 | -2 | 42 | 169 | 125 | 59 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 121 | 134 | 153 | 129 | 66 | 68 | 84 | 98 | 72 | 78 | 75 | 71 |
| Inventory Days | 238 | 342 | 216 | 391 | 428 | 226 | 262 | 431 | 574 | 379 | 507 | 389 |
| Days Payable | 76 | 48 | 73 | 188 | 124 | 30 | 116 | 197 | 164 | 135 | 161 | 138 |
| Cash Conversion Cycle | 282 | 428 | 297 | 332 | 370 | 264 | 230 | 331 | 483 | 321 | 421 | 323 |
| Working Capital Days | 13 | -7 | -3 | 120 | 86 | 134 | 93 | 75 | 107 | 111 | 141 | 132 |
| ROCE % | 6% | 3% | 1% | 86% | 139% | 0% | -2% | 14% | 15% | 9% | 4% | 8% |
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Company Information
HEG Ltd is a leading manufacturer and exporter of graphite electrodes in India. It operates the largest single-site integrated graphite electrodes plant in the world.[1] It is a part of LNJ Bhilwara Group which also has presence across IT Enabled services, power generation & textiles.[2]