HEG Limited (IN:HEG)
:HEG
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HEG Limited
(HEG)
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Rating:68Neutral
Price Target:
₹650.00
â–²(2.76% Upside)
Action:Reiterated
Date:05/01/26
The score is driven primarily by mixed financial quality: a strong balance sheet and a return to growth are offset by inconsistent profitability and weak/volatile cash flow (including negative free cash flow in 2026). Technicals are supportive with a strong longer-term uptrend, while valuation is fair but not especially attractive given the low dividend yield.
Positive Factors
Solid Balance Sheet
A large equity base and moderate leverage give HEG a durable financial cushion to withstand cyclical downturns in steel demand. This solidity supports capital investment, working capital needs, and creditor confidence over a 2-6 month horizon, improving resilience against margin shocks.
Negative Factors
Weak Cash Generation
Material declines and swings in operating and free cash flow reduce HEG's financial flexibility. Negative FCF amid capex and working capital needs limits capacity to de-lever, invest, or return capital without relying on external funding, elevating risk if margins re-tighten.
Read all positive and negative factors
Positive Factors
Negative Factors
Solid Balance Sheet
A large equity base and moderate leverage give HEG a durable financial cushion to withstand cyclical downturns in steel demand. This solidity supports capital investment, working capital needs, and creditor confidence over a 2-6 month horizon, improving resilience against margin shocks.
Read all positive factors
HEG Limited (HEG) vs. iShares MSCI India ETF (INDA)
Market Cap
₹114.51B
Dividend Yield0.33%
Average Volume (3M)56.23K
Price to Earnings (P/E)―
Beta (1Y)1.32
Revenue Growth19.26%
EPS Growth196.63%
CountryIN
Employees1,075
SectorBasic Materials
Sector Strength58
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)13.36
Shares Outstanding192,977,520
10 Day Avg. Volume89,538
30 Day Avg. Volume56,228
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)2.20
Price to Sales (P/S)4.07
P/FCF Ratio-159.87
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹650.00Price Target Upside2.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)27.6
Revenue Forecast (FY)₹33.13B
HEG Limited Business Overview & Revenue Model
Company Description
HEG Limited manufactures and sells graphite electrodes primarily for steel manufacturers in India. It operates through two segments, Graphite Electrodes and Power Generation. The company provides ultra-high power, high-power, and regular power gra...
How the Company Makes Money
HEG primarily makes money by manufacturing and selling graphite electrodes to steel producers, especially EAF-based steelmakers that consume electrodes as a critical operating input. Revenue is generated from (1) sales volumes of graphite electrod...
HEG Limited Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.21B | 25.68B | 21.44B | 23.80B | 24.35B | 21.73B |
| Gross Profit | 8.68B | 7.99B | 7.37B | 7.55B | 10.16B | 9.09B |
| EBITDA | 5.80B | 4.17B | 3.92B | 6.05B | 8.05B | 6.46B |
| Net Income | 2.58B | 3.41B | 1.15B | 3.12B | 5.32B | 4.31B |
Balance Sheet | ||||||
| Total Assets | 59.41B | 61.66B | 56.48B | 57.01B | 56.92B | 53.08B |
| Cash, Cash Equivalents and Short-Term Investments | 8.60B | 6.53B | 6.09B | 7.12B | 7.67B | 12.46B |
| Total Debt | 6.44B | 7.96B | 5.88B | 6.23B | 7.43B | 6.65B |
| Total Liabilities | 12.75B | 14.08B | 11.94B | 12.75B | 14.11B | 13.94B |
| Stockholders Equity | 46.66B | 47.58B | 44.54B | 44.26B | 42.81B | 39.14B |
Cash Flow | ||||||
| Free Cash Flow | 1.66B | -654.70M | 974.80M | 2.41B | -3.66B | -5.00B |
| Operating Cash Flow | 2.42B | 1.87B | 2.80B | 6.12B | 1.13B | -1.41B |
| Investing Cash Flow | -2.41B | -2.83B | -2.08B | -1.84B | -211.10M | -1.83B |
| Financing Cash Flow | -221.80M | 860.70M | -1.59B | -3.24B | -999.55M | 3.44B |
HEG Limited Technical Analysis
Neutral
632.55
Price Trends
573.25
Positive
567.88
Positive
543.48
Positive
Market Momentum
4.20
Positive
47.01
Neutral
48.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HEG, the sentiment is Neutral. The current price of 632.55 is above the 20-day moving average (MA) of 622.45, above the 50-day MA of 573.25, and above the 200-day MA of 543.48, indicating a neutral trend. The MACD of 4.20 indicates Positive momentum. The RSI at 47.01 is Neutral, neither overbought nor oversold. The STOCH value of 48.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:HEG.
HEG Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ₹158.84B | 17.47 | ― | 1.04% | 16.37% | -2.04% | |
74 Outperform | ₹94.31B | 14.87 | ― | 0.82% | 94.55% | 93.38% | |
73 Outperform | ₹72.57B | 28.77 | ― | 0.48% | 23.02% | 56.47% | |
68 Neutral | ₹114.51B | -22.98 | ― | 0.33% | 19.26% | 196.63% | |
68 Neutral | ₹221.92B | 21.77 | ― | 0.49% | 27.62% | 57.80% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
54 Neutral | ₹144.78B | 46.09 | ― | 1.93% | 3.37% | -23.13% |
* Basic Materials Sector Average
IN:HEG
HEG Limited
593.40
101.25
20.57%
IN:FINCABLES
Finolex Cables Limited
1,038.60
91.45
9.66%
IN:GENUSPOWER
Genus Power Infrastructures Limited
310.00
-6.87
-2.17%
IN:GRAPHITE
Graphite India Limited
741.05
212.34
40.16%
IN:PRECWIRE
Precision Wires India Limited
397.00
225.19
131.07%
IN:RRKABEL
RR Kabel Ltd.
1,962.05
682.35
53.32%
HEG Limited Corporate Events
HEG clears FY26 results, dividend and governance moves, backs TACC funding
Apr 29, 2026
HEG Limited’s board has approved the audited standalone and consolidated financial results for the quarter and year ended 31 March 2026, alongside cash flow statements and statements of assets and liabilities, all supported by unmodified aud...
HEG Board Clears FY26 Results, Dividend and Security Backing for Subsidiary
Apr 29, 2026
HEG Limited’s board has approved the audited standalone and consolidated financial results for the quarter and year ended 31 March 2026 and recommended a final dividend of Rs 3.40 per equity share for FY 2025-26, subject to shareholder appro...
HEG Board Clears FY26 Results, Dividend and Key Governance Decisions
Apr 29, 2026
HEG Limited’s board has approved the audited standalone and consolidated financial results for the quarter and year ended 31 March 2026, along with associated cash flow and asset and liability statements, and recommended a final dividend of ...
HEG Board Clears FY26 Results, Dividend and Auditor Re-Appointments
Apr 29, 2026
HEG Limited’s board has approved the audited standalone and consolidated financial results for the quarter and year ended 31 March 2026, and recommended a final dividend of Rs. 3.40 per equity share of face value Rs. 2 for 2025-26, subject t...
HEG Board Clears FY26 Results, Dividend and Governance Moves, Backs Subsidiary Funding
Apr 29, 2026
HEG Limited’s board has approved the audited standalone and consolidated financial results for the quarter and year ended 31 March 2026, and recommended a final dividend of Rs. 3.40 per equity share for FY 2025-26, subject to shareholder app...
HEG to Host Q4 FY26 Earnings Call With Top Management on 4 May
Apr 22, 2026
HEG Limited has announced that, following its board meeting on 29 April 2026 to approve audited financial results for the quarter and year ended 31 March 2026, it will hold an earnings conference call for the fourth quarter of FY26 on 4 May 2026 a...
HEG Reports No Re-Lodgement Requests for Physical Share Transfers in March 2026
Apr 6, 2026
HEG Limited has disclosed that its Registrar and Share Transfer Agent, MCS Share Transfer Agent Limited, has provided a monthly report on re-lodgement requests for transfers of physical shares, as required under a recent SEBI circular. For March 2...
HEG sets May meetings for NCLT-driven restructuring scheme
Apr 3, 2026
HEG Limited has notified stock exchanges that, pursuant to directions from the National Company Law Tribunal’s Indore Bench, separate meetings of its equity shareholders, secured creditors and unsecured creditors will be held on 5 May 2026 v...
HEG Limited Receives Independent ESG Score of 63 From NSE Sustainability
Apr 2, 2026
HEG Limited disclosed that NSE Sustainability Ratings and Analytics Limited has independently assigned it an Environmental, Social and Governance score of 63, corresponding to an “Adequate” rating category, based solely on publicly ava...
HEG to Hold One-on-One Investor Meeting With Unifi Capital on April 7
Apr 1, 2026
HEG Limited has informed the stock exchanges that its senior management will hold a one-to-one, in-person meeting with a representative of Unifi Capital, a SEBI-registered portfolio management services firm, on 7 April 2026. The company said the d...
HEG gains tribunal nod to convene meetings on composite restructuring scheme
Mar 27, 2026
HEG Limited has reported that the National Company Law Tribunal, Indore Bench, has cleared a key procedural step in the proposed composite scheme of arrangement involving HEG Limited, HEG Graphite Limited and Bhilwara Energy Limited. The tribunal ...
HEG Gets Major Relief as GST Authority Drops Rs 282 Crore IGST Refund Demand for FY20
Mar 17, 2026
HEG Limited has announced that the Goods and Services Tax authority in Madhya Pradesh has dropped a show cause notice for the financial year 2019-20, which had proposed recovery of allegedly erroneous IGST refunds and penalties totaling Rs 282.34 ...
HEG Reports Promoter Group Insider Trading Code Violation to Exchanges
Feb 21, 2026
HEG Limited has disclosed that a designated person belonging to its promoter group, identified as Mr. Nivedan Churiwal, violated the company’s code of conduct and SEBI’s Prohibition of Insider Trading Regulations in relation to trading...
HEG Limited Discloses Promoter Group Share Transaction Under SEBI Insider Trading Rules
Feb 19, 2026
HEG Limited has reported to the stock exchanges that members of its promoter group have made continual disclosures under Regulation 7(2) read with Regulation 6(2) of SEBI’s Prohibition of Insider Trading Regulations, 2015. The filing details...
HEG Shares Q3 and Nine-Month FY 25-26 Unaudited Results Presentation
Feb 10, 2026
HEG Limited has released an investor presentation detailing its unaudited financial results for the third quarter and nine-month period ended 31 December 2025. The materials have been shared with stock exchanges in Mumbai and made available on the...
HEG Limited Publishes Investor Presentation on Q3 and Nine-Month FY 2025-26 Results
Feb 10, 2026
HEG Limited has released an investor presentation detailing its unaudited financial results for the quarter and nine-month period ended 31 December 2025. The presentation, now also available on the company’s website, is intended to inform sh...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.