Buy HEG, target price Rs 1898: ICICI Securities

ICICI Securities has buy call on HEG with a target price of Rs 1898. The current market price of HEG is Rs 1809.7. ICICI Securities recommended to keep stop loss at Rs 1748.

HEG, incorporated in the year 1972, is a Mid Cap company (having a market cap of Rs 6978.65 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 31-03-2023, the company has reported a Consolidated Total Income of Rs 648.23 Crore, up 14.29 % from last quarter Total Income of Rs 567.16 Crore and down -6.12 % from last year same quarter Total Income of Rs 690.46 Crore. Company has reported net profit after tax of Rs 88.88 Crore in latest quarter.

Investment Rationale
Bullish flag breakout backed by robust volume suggest acceleration of upward momentum.

Promoter/FII Holdings
Promoters held 55.78 per cent stake in the company as of 30-Jun-2023, while FIIs owned 6.73 per cent, DIIs 7.42 per cent.