HEG Limited (HEG) AI Stock Analysis

• Market Cap: ₹111.80B
• Dividend Yield: 0.34%
• Average Volume (3M): 56.23K
• Price to Earnings (P/E): 56.8
• Beta (1Y): 1.35
• Revenue Growth: 3.93%
• EPS Growth: 41.77%
• Country: IN
• Employees: 1,075
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Electrical Equipment & Parts
• EPS (TTM): 7.43
• Shares Outstanding: 192,977,520
• 10 Day Avg. Volume: 89,538
• 30 Day Avg. Volume: 56,228
• PEG Ratio: -1.28
• Price to Book (P/B): 2.09
• Price to Sales (P/S): 4.34
• P/FCF Ratio: 95.57
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ₹551.00 ▲(4.43% 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 generation. Technical analysis presents mixed signals, while valuation metrics suggest the stock may be overvalued. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, allowing HEG to navigate market fluctuations and invest in growth opportunities.

High Equity Ratio

A high equity ratio indicates a solid financial foundation, reducing reliance on debt and enhancing the company's ability to withstand economic downturns.

Strategic Partnerships

Long-term partnerships with key industry players help ensure stable revenue streams and provide a competitive edge in the graphite electrode market.

Negative Factors

Declining Revenue

Declining revenue indicates potential challenges in market demand or competitive pressures, which could impact long-term growth and profitability.

Profit Margin Decline

A significant drop in profit margins suggests operational inefficiencies or increased costs, which could affect the company's ability to generate sustainable profits.

Cash Flow Challenges

Decreased cash flow from operations limits the company's ability to fund investments and operations, posing a risk to financial health and growth potential.

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 grade graphite electrodes and nipples; carbon blocks; graphite specialties; and activated carbon fabric products for use in air-conditioner and air purifying filters, clean rooms, pollution control filters, anti-pollution masks, refrigerator deodorizers, and cigarette filters. It also operates two thermal power plants and a hydroelectric power facility with total power generation capacity of 76.5 MW. The company also exports its products to approximately 30 countries. HEG Limited was incorporated in 1972 and is headquartered in Noida, India.

How the Company Makes Money

HEG Limited generates revenue primarily through the sale of graphite electrodes, which are critical components used in EAFs for steel production. The company benefits from the global demand for steel, particularly in emerging markets, as well as the rising adoption of electric arc furnaces. Key revenue streams include direct sales to steel manufacturers and long-term contracts with major clients in the steel industry. Additionally, HEG has established significant partnerships with other industrial players that enhance its market reach and operational capabilities. The company's earnings are also influenced by fluctuations in raw material prices, production efficiency, and overall market demand for steel and related products.

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 with declining revenue and profit margins. Cash flow from operations has decreased significantly, indicating cash generation issues.

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	22.05B	21.44B	23.80B	24.35B	21.73B	12.34B
Gross Profit	4.28B	3.74B	4.32B	7.78B	9.09B	234.56M
EBITDA	5.14B	3.78B	5.24B	8.05B	6.47B	532.41M
Net Income	1.97B	1.15B	3.12B	5.32B	4.31B	-179.38M
Balance Sheet
Total Assets	0.00	56.48B	57.01B	56.92B	53.08B	42.44B
Cash, Cash Equivalents and Short-Term Investments	5.21B	6.09B	7.12B	7.67B	12.46B	10.52B
Total Debt	0.00	5.88B	6.23B	7.43B	6.65B	2.98B
Total Liabilities	-44.54B	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: 527.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 527.65 is below the 20-day moving average (MA) of 533.04, above the 50-day MA of 526.16, and above the 200-day MA of 484.92, indicating a neutral trend. The MACD of -1.51 indicates Negative momentum. The RSI at 50.21 is Neutral, neither overbought nor oversold. The STOCH value of 76.48 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
RRKABEL	74 Outperform	₹160.88B	39.85	―	0.54%	17.36%	52.81%
GENUSPOWER	68 Neutral	₹107.37B	24.70	―	0.76%	129.98%	215.49%
PRECWIRE	68 Neutral	₹41.18B	43.06	―	0.45%	19.03%	36.25%
FINCABLES	66 Neutral	₹120.39B	19.43	―	1.06%	7.42%	-4.96%
HEG	62 Neutral	₹111.80B	56.80	―	0.34%	3.93%	41.77%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GRAPHITE	54 Neutral	₹119.80B	33.37	―	1.98%	-7.12%	-48.28%

HEG Limited Corporate Events

HEG Limited Reports Strong Financial Performance for Q2 2025

HEG Limited has released its unaudited financial results for the quarter and half year ending September 30, 2025. The results, published in major newspapers, indicate a strong financial performance with significant increases in total income and net profit compared to the previous year. This positive financial outcome reflects the company’s robust operations and strategic positioning in the graphite electrode market, which is crucial for steel production. The results also highlight the contributions from its subsidiaries and associate companies, further strengthening its market presence.

HEG Limited Approves Major Financial Moves and Leadership Appointment

HEG Limited’s Board of Directors has approved the subscription of unsecured, unlisted optionally convertible debentures from its wholly-owned subsidiary, TACC Limited, amounting to INR 633 crores. Additionally, the Board has decided to sell a 26% stake in Texnere India Private Limited held by Bhilwara Infotechnology Limited, another subsidiary. The company also announced the appointment of Shri Puneet Anand as President and Group Chief Strategy Officer. Furthermore, HEG Limited is addressing show cause notices regarding IGST refunds for previous fiscal years, expressing confidence in resolving these issues.

LNJ Bhilwara Group Acquires Full Ownership of Malana Power Company

LNJ Bhilwara Group has acquired Statkraft’s 49% minority stake in Malana Power Company Limited, making Bhilwara Energy Limited the sole owner. This acquisition enhances the Group’s renewable energy portfolio and positions it to expand in the power sale business, reinforcing its commitment to India’s clean energy future.