HEG Ltd
HEG NSE
HEG Ltd
IndustrialsNSE: HEG BSE: 509631 Industrial Products
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]
AI Verdict: HOLD Confidence: 5%
HEG Ltd shows strong TTM profit growth of 194% and unanimous analyst buy ratings, but the low 3-year ROE of 5.70% and significant other income of Rs.260 Cr raise earnings quality concerns. At a PE of 31.7x for a cyclical graphite electrode business, the valuation appears stretched relative to underlying operating performance.
Key Fundamentals
MicrocapElectrodes & RefractoriesIndustrial ProductsMarket Cap
₹10,000 Cr
Volatility
Moderate
P/E Ratio
29.4
EBITDA
₹398 Cr
Return on Equity
7.04%
Debt to Equity
0.14
Book Value
₹246.55
EPS
₹50.68
52W High
₹690
52W Low
₹459.8
Technical Indicators
Key Insights
Strengths
1- Company has been maintaining a healthy dividend payout of 25.8%
Weaknesses
2- Company has a low return on equity of 5.70% over last 3 years.
- Earnings include an other income of Rs.260 Cr.
Growth Rate
Revenue Growth
12.29% ↗
Net Income Growth
186.35% ↗
Cash Flow Change
-54.31% ↘
ROE
-63.35% ↗
ROCE
-54.05% ↗
EBITDA Margin (Avg.)
-15.84% ↗
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 23d agoHOLD
Risk high
HEG Ltd shows strong TTM profit growth of 194% and unanimous analyst buy ratings, but the low 3-year ROE of 5.70% and significant other income of Rs.260 Cr raise earnings quality concerns. At a PE of 31.7x for a cyclical graphite electrode business, the valuation appears stretched relative to underlying operating performance.
Bull Case 8
- TTM compounded profit growth of 194% signals a sharp cyclical recovery in graphite electrode demand
- 100% analyst buy consensus with 2 out of 2 analysts recommending buy indicates professional confidence
- 10-year stock CAGR of 34% demonstrates exceptional long-term wealth creation for patient investors
- TTM sales growth of 19% suggests improving top-line momentum after a flat 3-year period of just 1% CAGR
- Healthy dividend payout ratio of 25.8% shows management commitment to shareholder returns
- Price-to-book ratio of 2.27x is reasonable for an industrial company with significant tangible assets
- 10-year compounded profit growth of 63% reflects the company's ability to deliver supernormal returns during upcycles
- 3-year stock CAGR of 29% outperforms broader market indices significantly
Bear Case 8
- 3-year ROE of only 5.70% is well below cost of equity, indicating poor capital efficiency in recent years
- Earnings include other income of Rs.260 Cr, raising concerns about core operating profit quality
- PE of 31.7x is expensive for a highly cyclical industrial commodity business prone to sharp earnings swings
- 3-year compounded profit CAGR of -14% shows earnings actually declined over the medium term despite recent recovery
- 3-year compounded sales CAGR of just 1% indicates near-stagnant revenue growth over a meaningful period
- Dividend yield of only 0.32% offers minimal income cushion during potential stock price corrections
- 5-year stock CAGR of just 5% suggests prolonged periods of underperformance are common in this cyclical business
- Only 2 total analyst ratings indicate thin coverage, reducing reliability of the 100% buy consensus
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 21d ago Positives 2
- NCLT scheme unanimously approved May 7
HEG's Composite Scheme of Arrangement was unanimously passed by equity shareholders, secured creditors, and unsecured creditors at NCLT-convened meetings on May 5, 2026.
- Final dividend of Rs 3.40 May 27
HEG declared a final dividend of Rs 3.40 per share for FY 2025-26, pending AGM approval.
Neutral 2
- TACC-NUS graphene research MOU Jun 2
TACC Limited (HEG subsidiary) signed an MOU with NUS I-FIM on June 2, 2026 to co-develop and commercialize next-generation graphene and functional nanomaterials.
- Auditor reappointments and SBI security May 7
HEG board reappointed cost, internal, and tax auditors for FY26-27 and approved security creation for subsidiary TACC in favour of State Bank of India.
TL;DR: HEG is progressing on corporate restructuring with unanimous NCLT approval and rewarding shareholders with a Rs 3.40 dividend. The TACC-NUS partnership signals long-term ambitions in advanced materials but is early-stage. No visible headwinds emerged in recent news flow. The trend is stable with optionality building around graphene commercialization.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 617 | 671 | 614 | 562 | 547 | 571 | 568 | 478 | 537 | 617 | 699 | 656 | 603 |
| Expenses | 493 | 520 | 512 | 476 | 506 | 533 | 471 | 411 | 598 | 512 | 581 | 513 | 752 |
| Operating Profit | 123 | 151 | 102 | 87 | 41 | 39 | 97 | 67 | -61 | 105 | 118 | 143 | -148 |
| OPM % | 20% | 23% | 17% | 15% | 8% | 7% | 17% | 14% | -11% | 17% | 17% | 22% | -25% |
| Other Income | 42 | 68 | 63 | 30 | 64 | 41 | 63 | 112 | 43 | 83 | 120 | 167 | 72 |
| Interest | 7 | 9 | 9 | 10 | 9 | 8 | 9 | 9 | 12 | 8 | 9 | 9 | 11 |
| Depreciation | 33 | 38 | 38 | 47 | 50 | 48 | 48 | 51 | 55 | 53 | 54 | 54 | 53 |
| PBT | 125 | 172 | 118 | 59 | 46 | 24 | 103 | 119 | -85 | 127 | 175 | 246 | -140 |
| Tax % | 20% | 19% | 18% | 27% | 29% | 3% | 20% | 30% | -13% | 18% | 18% | 16% | -19% |
| Net Profit | 100 | 139 | 96 | 44 | 33 | 23 | 82 | 83 | -74 | 105 | 143 | 207 | -114 |
| EPS in Rs | 5.17 | 7.21 | 4.97 | 2.26 | 1.71 | 1.19 | 4.26 | 4.32 | -3.82 | 5.43 | 7.43 | 10.73 | -5.9 |
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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,228 | 870 | 859 | 2,748 | 6,591 | 2,145 | 1,254 | 2,201 | 2,463 | 2,393 | 2,158 | 2,568 |
| Expenses | 1,046 | 733 | 778 | 1,027 | 1,930 | 2,150 | 1,308 | 1,670 | 1,844 | 2,011 | 1,902 | 2,170 |
| Operating Profit | 182 | 137 | 81 | 1,721 | 4,662 | -5 | -53 | 530 | 619 | 382 | 255 | 398 |
| OPM % | 15% | 16% | 9% | 63% | 71% | 0% | -4% | 24% | 25% | 16% | 12% | 16% |
| Other Income | 15 | 4 | 7 | 12 | 106 | 143 | 114 | 117 | 187 | 223 | 145 | 260 |
| Interest | 77 | 60 | 55 | 56 | 18 | 37 | 11 | 7 | 26 | 36 | 39 | 37 |
| Depreciation | 75 | 79 | 74 | 73 | 72 | 72 | 73 | 79 | 102 | 175 | 201 | 213 |
| PBT | 44 | 1 | -41 | 1,605 | 4,677 | 29 | -23 | 560 | 677 | 395 | 160 | 408 |
| Tax % | 12% | 886% | 23% | 33% | 35% | -82% | -23% | 23% | 21% | 21% | 28% | 16% |
| Net Profit | 36 | 4 | -44 | 1,099 | 3,026 | 68 | -18 | 431 | 532 | 312 | 115 | 341 |
| 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 |
| 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 | 1,789 |
| 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 | -36 |
| CFO/OP | 155 | 188 | 205 | 65 | 67 | -17,020 | -1,349 | -2 | 42 | 169 | 127 | 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 | 189 |
| ROCE % | 6% | 3% | 1% | 86% | 139% | 0% | -2% | 14% | 15% | 9% | 4% | 8% |
Documents
1
Announcement under Regulation 30 (LODR)-Meeting Updates
6 May - NCLT meetings approved composite scheme with HEG Graphite and Bhilwara Energy on May 5, 2026. 6 May - NCLT meetings approved composite scheme with HEG Graphite and Bhilwara Energy on May 5, 2026.
3
Re-Lodgment Of Transfer Requests Of Physical Shares.
6 May - HEG reported zero physical share transfer re-lodgment requests in April 2026. 6 May - HEG reported zero physical share transfer re-lodgment requests in April 2026.
4
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Outcome
1d - HEG uploaded Q4 FY26 earnings conference call audio recording on 4 May 2026. 1d - HEG uploaded Q4 FY26 earnings conference call audio recording on 4 May 2026.
5
Shareholder Meeting / Postal Ballot-Outcome of Court Convened Meeting
18m - HEG shareholders met May 5, 2026 to consider composite scheme; voting results to follow. 18m - HEG shareholders met May 5, 2026 to consider composite scheme; voting results to follow.
Frequently Asked Questions about HEG Ltd
What does HEG Ltd do?
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]
Where is HEG Ltd (HEG) listed?
HEG Ltd is listed on the Indian stock exchanges. It is listed on NSE: HEG and BSE: 509631. You can view its live share price, financials, and ratios on Tapetide.
Which sector does HEG Ltd belong to?
HEG Ltd operates in the Industrials sector within the Industrial Products industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of HEG Ltd?
HEG Ltd has a market capitalisation of approximately ₹10000.10 Cr. Based on this, it is classified as a Mid Cap stock.
What is the PE ratio of HEG Ltd?
The Price-to-Earnings (PE) ratio of HEG Ltd is 29.40. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of HEG Ltd?
Over the past 52 weeks, HEG Ltd has traded between a low of ₹459.8 and a high of ₹690. This range helps investors understand the stock's price volatility and recent trading levels.
Does HEG Ltd pay dividends?
Yes, HEG Ltd has a dividend yield of 0.65%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of HEG Ltd?
HEG Ltd has a Return on Equity (ROE) of 7.04%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research HEG Ltd on Tapetide?
On Tapetide, you can view HEG Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.
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]
Website hegltd.com
CEO Mr. Ravi Jhunjhunwala B.Com (H), MBA
Employees 1,114
Listed 1995-05-10
Face Value ₹ 2
Issued Size 19,29,77,530