Buy HEG, target price Rs 1125: Nagaraj Shetti

Nagaraj Shetti of HDFC Securities has buy call on HEG with a target price of Rs 1125. The current market price of HEG Ltd. is Rs 1064. Time period given by analyst is Intra Day when HEG price can reach defined target. Nagaraj Shetti recommended to keep stop loss at Rs 1025.

HEG, incorporated in the year 1972, is a Mid Cap company (having a market cap of Rs 4089.19 Crore) operating in Industrial Consumables sector.

Financials

For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 617.71 Crore, down -16.89 % from last quarter Total Income of Rs 743.28 Crore and up 13.78 % from last year same quarter Total Income of Rs 542.91 Crore. Company has reported net profit after tax of Rs 129.89 Crore in latest quarter.

The company’s top management includes Mr.L N Jhunjhunwala, Mrs.Ramni Nirula, Mr.Satish Chand Mehta, Mr.Shekhar Agarwal, Mrs.Vinita Singhania, Dr.Kamal Gupta, Mr.Manish Gulati, Mr.Riju Jhunjhunwala, Mr.Ravi Jhunjhunwala, Mr.Jayant Davar. Company has SCV & Co. LLP as its auditors. As on 30-09-2022, the company has a total of 4 Crore shares outstanding.

Investment Rationale
HEG's stock price has moved up after range bound action. Price is in an attempt of upside breakout, noted the analyst.

Promoter/FII Holdings
Promoters held 55.13 per cent stake in the company as of 30-Sep-2022, while FIIs owned 6.81 per cent, DIIs 8.51 per cent.