Rs 42.5/Share Dividend: Prabhudas Lilladher Recommended Buy On This Smallcap Stock For Rs 2,050 TP

Smallcap stock, HEG LTD has given double-digit returns in 2023 so far. The stock price currently has strong bullish candle pattern on its daily chart, and Prabhudas Lilladher has recommended buying HEG for a target price of up to Rs 2,050 per share in the medium term.

In the trading week that ended on December 8th, HEG shares gained by nearly 3%. But year-to-date, the stock's upside is more than 59% on BSE.

On BSE, HEG shares stood at Rs 1719.60 apiece, which is higher by over 87% from its 52-week low of Rs 919 apiece. The stock has touched a 52-week high of Rs 1,914 apiece.

Earlier this week, Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher on HEG said, "The stock has bottomed out near 1460 zone and has indicated a pullback after a short period of consolidation with currently having sessions of strong bullish candle pattern on the daily chart to strengthen the bias and further rise is anticipated in the coming days."

Koothupalakkal believes that "A decisive breach above 1850 can trigger for a breakout for fresh upward movement with next target expected till 1960 and 2050 levels in the medium-term time frame. The support would be maintained near the 1550 zone below which the overall bias can turn weak."

"So one can accumulate the stock at current levels for an upside target of 1960-2050 levels with the chart looking good," the technical analyst added.

HEG a premier company of the LNJ Bhilwara group, is currently India's leading graphite electrode manufacturer. It has one of the largest integrated Graphite Electrode plants in the world, processing sophisticated UHP (Ultra High Power) Electrodes.

HEG is also among high dividend-paying smallcap stocks. As per the Trendlyne data, HEG has declared up to 25 dividends since September 2001. In the past 12 months, the company paid dividends of a whopping Rs 42.50 per share. On the current stock price level, its dividend yield is at 2.47%. The majority of consensus here recommends buying HEG shares.

As per Trendlyne, HEG's weekly average delivery volume is 31.18%, while it is trading above 7 out of 8 SMAs. Also, the stock is trading above 5 out of 9 Oscillators in a bullish zone. Here, HEG is under the "Turnaround Potential" category where stocks with low to medium durability scores, moderate valuation and rising momentum. Increasing momentum suggests that these stocks may have a potential for recovery.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.