HEG Limited (HEG) AI Stock Analysis

• Market Cap: ₹92.25B
• Dividend Yield: 0.37%
• Average Volume (3M): 177.54K
• Price to Earnings (P/E): 46.9
• Beta (1Y): 1.41
• Revenue Growth: -3.91%
• EPS Growth: 0.63%
• Country: IN
• Employees: 1,075
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Electrical Equipment & Parts
• EPS (TTM): 5.43
• Shares Outstanding: 192,977,520
• 10 Day Avg. Volume: 30,187
• 30 Day Avg. Volume: 177,538
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹557.00
• Price Target Upside: 13.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 62 Neutral
• Price Target: ₹526.00 ▲(7.24% Upside)

HEG Limited's overall stock score is primarily influenced by its strong balance sheet, which is offset by challenges in profitability and cash flow. Technical indicators suggest a lack of strong momentum, and the stock appears overvalued with a high P/E ratio and low dividend yield. These factors collectively result in a moderate stock score.

HEG Limited Business Overview & Revenue Model

Company Description

HEG Limited (HEG) is a leading manufacturer of graphite electrodes, primarily used in electric arc furnaces in the steel industry. With a strong presence in the market, HEG operates in the industrial manufacturing sector, focusing on producing high-quality graphite products that cater to the steel and other industries worldwide.

How the Company Makes Money

HEG Limited generates revenue through the production and sale of graphite electrodes. These electrodes are critical components in electric arc furnaces, which are widely used in steel production. The company capitalizes on the demand for steel, as their products are essential for the steel manufacturing process. Key revenue streams include direct sales to steel manufacturers and distributors. Additionally, HEG's earnings are influenced by global steel production trends, raw material availability, and pricing. Strategic partnerships with major steel producers and long-term supply contracts play a significant role in stabilizing and enhancing their revenue.

HEG Limited Financial Statement Overview

Summary

HEG Limited's financial performance is mixed. The company has a strong balance sheet with low leverage and high equity, but faces challenges in profitability and cash generation. Declining revenue and profit margins, along with reduced cash flow from operations, indicate operational inefficiencies.

Income Statement

The company has shown a decline in total revenue over the past year, with a decrease from 23.79 billion to 21.59 billion. The gross profit margin stands at a healthy 42.8%, but the net profit margin has decreased significantly to 5.3% from 13.1% the previous year. The EBIT and EBITDA margins are also down, indicating reduced operational efficiency. Overall, the income statement reflects profitability challenges amidst declining revenues.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.13, indicating low leverage and financial stability. The equity ratio is high at 78.9%, underscoring a strong equity base. However, the return on equity has decreased to 2.6%, reflecting weaker profitability. The company's asset base remains robust, providing a cushion against potential financial risks.

Cash Flow

The cash flow from operations has decreased significantly to 2.80 billion from 6.12 billion, impacting free cash flow generation, which is now 0.97 billion. The operating cash flow to net income ratio is below 1, suggesting cash flow challenges relative to reported profits. While free cash flow remains positive, the growth rate is negative, indicating weakening cash generation ability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	21.60B	21.44B	23.80B	24.35B	21.73B	12.34B
Gross Profit	9.24B	9.24B	4.32B	10.16B	9.09B	1.94B
EBITDA	3.64B	3.19B	5.24B	8.05B	6.47B	532.41M
Net Income	1.15B	1.15B	3.12B	5.32B	4.31B	-179.38M
Balance Sheet
Total Assets	56.48B	56.48B	57.01B	56.92B	53.08B	42.44B
Cash, Cash Equivalents and Short-Term Investments	6.09B	6.09B	7.12B	7.67B	12.46B	10.52B
Total Debt	5.88B	5.88B	6.23B	7.43B	6.65B	2.98B
Total Liabilities	11.94B	11.94B	12.75B	14.11B	13.94B	7.49B
Stockholders Equity	44.54B	44.54B	44.26B	42.81B	39.14B	34.95B
Cash Flow
Free Cash Flow	0.00	974.80M	2.41B	-3.66B	-5.00B	4.60B
Operating Cash Flow	0.00	2.80B	6.12B	1.13B	-1.41B	7.16B
Investing Cash Flow	0.00	-2.08B	-1.84B	-211.10M	-1.83B	-4.17B
Financing Cash Flow	0.00	-1.59B	-3.24B	-999.55M	3.44B	-3.10B

HEG Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 490.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HEG, the sentiment is Positive. The current price of 490.5 is below the 20-day moving average (MA) of 495.65, below the 50-day MA of 509.33, and above the 200-day MA of 469.35, indicating a neutral trend. The MACD of -9.06 indicates Positive momentum. The RSI at 49.28 is Neutral, neither overbought nor oversold. The STOCH value of 56.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:HEG.

HEG Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRECWIRE	69 Neutral	₹31.14B	32.82		0.66%	20.80%	20.82%
FINCABLES	67 Neutral	₹131.41B	21.22		0.93%	8.79%	-15.75%
RRKABEL	66 Neutral	₹134.76B	39.97		0.74%	15.63%	16.30%
GENUSPOWER	64 Neutral	₹101.41B	23.34		0.18%	119.77%	228.09%
HEG	62 Neutral	₹92.25B	46.87		0.37%	-3.91%	0.63%
Sector *	61 Neutral	$10.27B	6.37	0.76%	2.91%	3.10%	-36.03%
GRAPHITE	60 Neutral	₹101.40B	28.25		2.10%	-14.81%	-66.60%

HEG Limited Corporate Events

HEG Limited Announces 53rd AGM Details and E-Voting Information

HEG Limited announced the details of its 53rd Annual General Meeting (AGM), scheduled for August 20, 2025, to be conducted via video conferencing. The company has provided e-voting information and book closure dates, indicating a focus on facilitating shareholder participation and transparency. The AGM will address various business matters, including the declaration of a final dividend, and the results will be disclosed promptly post-meeting.

HEG Limited Confirms Regulatory Compliance with SEBI Regulations

HEG Limited has announced the submission of a certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ending June 30, 2025. This certificate confirms that securities received for dematerialization have been appropriately listed, verified, and updated in the company’s records, ensuring compliance with regulatory standards. This announcement underscores HEG Limited’s adherence to regulatory requirements, which may enhance its credibility and operational transparency, potentially benefiting stakeholders and maintaining its strong position in the industry.