ICICI Direct Assigns Buy On Midcap Industrial Consumables Stock, Shares Jump 75.88% In 3 Months

Broking firm ICICI Direct initiates coverage on HEG Ltd. with a Buy rating. The brokerage has assigned a target price of Rs 2025 per share on the stock for a target period of 12 Months. It sees a potential upside of 25%, considering the given target price and the current market price of the stock.

HEG is a midcap Industrial Consumables sector company. It has a market cap of Rs 6290.68 Crore.

Rating and Target Price

ICICI Direct said, "We have assigned BUY rating on HEG, on the back of trend in shift globally towards EAF route of steelmaking which augurs well for graphite electrode demand. Also, HEG is on the verge of commissioning its capacity expansion plans which will aid volume growth going forward."

It added, "We have valued HEG at 6.5x FY25E EV/EBITDA and arrive at a target price of Rs 2025. HEG's double digit return ratios & Cash positive B/S provide margin of safety."

Stock Movement

The last traded share price of HEG on BSE is Rs 1629.90 per share. It traded the 52-week high on Jun 20, 2023, at Rs 1747 and 52-week low on Mar 31, 2023, at Rs 919, respectively.

The stock performed well in the past 6 months. It jumped 4.66^ in 1 week, 44.95% in 1 month, 76.88% in 3 months and 57.99% in 6 months, respectively.

Stock jumped 63.32% in 1 year, however, it declined 25.47% in 2 years. In 3 years, it jumped 97.05%, whereas, it declined 50.78% in 5 years.

About - HEG Ltd.

HEG is one of the leading graphite electrode manufacturers in India and is a key exporter of the same in global markets. HEG has world's largest single site graphite electrode manufacturing plant of 80,000 tonne capacity at Mandideep in Madhya Pradesh. HEG also has a captive power generation capacity of ~80 MW (two thermal power plants and one hydro power plant).

Disclaimer

The stock has been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.