HEG Ltd hits upper circuit post turnaround Q2 results; should you buy?
Total revenue of the company increased by 99 per cent year-on-year to Rs 412.09 crore during the quarter under review.
By ETMarkets.com | Updated:
Shares of graphite electrode manufacturer HEG Ltd hit an upper circuit of 5 per cent after the company on Thursday posted a net profit of Rs 113.66 crore for the quarter ended September 30, 2017 as against net loss of Rs 14.09 crore in the same quarter last year.
Total revenue of the company increased by 99 per cent year-on-year to Rs 412.09 crore during the quarter under review. It had posted total revenue of Rs 207.27 crore in Q2FY17.
The scrip jumped 5 per cent, or Rs 87.65, to Rs 1840.75 against the previous close of Rs 1,753.10.
ICICIdirect.com said, “HEG reported a stellar Q2FY18 performance marked by healthy capacity utilisation levels and a sharp increase in realisation.”
The fortunes of the graphite electrode sector have been on an uptrend. Over the last few months, spot graphite electrode prices have registered a notable increase. The key triggers have been consolidation of the graphite electrode market globally, around 20 per cent of global graphite electrode capacity (ex-China) shutting down in the last three years, increase in steel production through EAF route (outside China) coupled with an increase in global steel prices and closure of steel capacity in China has led to a decline in both steel and graphite electrode exports from the region.
ICICIdirect.com has ‘Buy’ on HEG Ltd with a target price of Rs 2,250.
Total revenue of the company increased by 99 per cent year-on-year to Rs 412.09 crore during the quarter under review. It had posted total revenue of Rs 207.27 crore in Q2FY17.
The scrip jumped 5 per cent, or Rs 87.65, to Rs 1840.75 against the previous close of Rs 1,753.10.
ICICIdirect.com said, “HEG reported a stellar Q2FY18 performance marked by healthy capacity utilisation levels and a sharp increase in realisation.”
The fortunes of the graphite electrode sector have been on an uptrend. Over the last few months, spot graphite electrode prices have registered a notable increase. The key triggers have been consolidation of the graphite electrode market globally, around 20 per cent of global graphite electrode capacity (ex-China) shutting down in the last three years, increase in steel production through EAF route (outside China) coupled with an increase in global steel prices and closure of steel capacity in China has led to a decline in both steel and graphite electrode exports from the region.
ICICIdirect.com has ‘Buy’ on HEG Ltd with a target price of Rs 2,250.
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