Buy HEG, target price Rs 1130: ICICI Direct

ICICI Direct has buy call on HEG with a target price of Rs 1130. The current market price of HEG is Rs 1077.55. ICICI Direct recommended to keep stop loss at Rs 1045.

HEG, incorporated in the year 1972, is a Mid Cap company (having a market cap of Rs 4156.93 Crore) operating in Industrial Consumables sector.

HEG key Products/Revenue Segments include Electrodes Graphite, Export Incentives, Power, Other Operating Revenue and Fly Ash for the year ending 31-Mar-2022.


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
Price sustaining above falling channel breakout area of four months and MACD in buy mode.

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.