HEG

Market Cap: Mid Cap
Industry: Electrodes & Welding Equipment
ISIN: INE545A01024
NSEID: HEG
BSEID: 509631

INR

456.70

11.7 (2.63%)

BSENSE

Apr 11, 12:53 PM

BSE+NSE Vol: 7.17 lacs

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Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

D & H India

Ador Welding

Graphite India

Esab India

HEG

Panasonic Carbon

DE Nora India

GEE

Rasi Electrodes

Royal Arc

Why is HEG Ltd ?

Poor long term growth as Net Sales has grown by an annual rate of -7.06% and Operating profit at -44.87% over the last 5 years

Flat results in Dec 24

PBT LESS OI(Q) At Rs 6.99 cr has Fallen at -65.6%
PAT(9M) At Rs 188.72 cr has Grown at -32.30%
ROCE(HY) Lowest at 5.36%

Stock is technically in a Mildly Bearish range

The technical trend has deteriorated from Sideways on 01-Apr-25 and has generated -5.35% returns since then
A key technical factor - KST has been Bearish since 01 Apr 2025

With ROE of 4.1, it has a Very Expensive valuation with a 1.9 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -3.36%, its profits have fallen by -41.4%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electrodes & Welding Equipment)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is HEG for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

HEG

-3.21%

-0.06

51.79%

SENSEX

0.45%

0.04

14.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-7.06%

EBIT Growth (5y)

-44.87%

EBIT to Interest (avg)

8.82

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.45

Tax Ratio

23.93%

Dividend Payout Ratio

27.86%

Pledged Shares

Institutional Holding

19.17%

ROCE (avg)

3.40%

ROE (avg)

6.57%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.93

EV to EBIT

141.29

EV to EBITDA

33.69

EV to Capital Employed

1.91

EV to Sales

4.02

PEG Ratio

Dividend Yield

1.05%

ROCE (Latest)

1.57%

ROE (Latest)

4.09%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

PAT(Q)

At Rs 83.40 cr has Grown at 83.4%

DEBT-EQUITY RATIO(HY)

Lowest at 0.13 times

EPS(Q)

Highest at Rs 21.61

-13What is not working for the Company

PBT LESS OI(Q)

At Rs 6.99 cr has Fallen at -65.6%

PAT(9M)

At Rs 188.72 cr has Grown at -32.30%

ROCE(HY)

Lowest at 5.36%

NET SALES(Q)

At Rs 478.38 cr has Fallen at -14.9% (vs previous 4Q average

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 150.79 cr

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.35 times

NON-OPERATING INCOME(Q)

is 94.10 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for HEG

Profit After Tax (PAT) - Quarterly

At Rs 83.40 cr has Grown at 83.4%

over average PAT of the previous four quarters of Rs 45.48 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Debt-Equity Ratio - Half Yearly

Lowest at 0.13 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Profit After Tax (PAT) - Quarterly

Highest at Rs 83.40 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 21.61

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for HEG

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 6.99 cr has Fallen at -65.6%

over average PBT of the previous four quarters of Rs 20.32 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Net Sales - Quarterly

At Rs 478.38 cr has Fallen at -14.9% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 562.09 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Net Sales - Quarterly

Lowest at Rs 478.38 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Non Operating Income - Quarterly

is 94.10 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 150.79 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio- Half Yearly

Lowest at 4.35 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at Rs 111.58 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income