Buy HEG, target Rs 4400: Jefferies Group

Jefferies Group has a buy call on HEG Ltd. with a target price of Rs 4400.0 . The current market price of HEG Ltd. is Rs 3389.45 Time period given by the brokerage is a year when HEG Ltd. price can reach defined target. HEG Ltd., incorporated in the year 1972, is a midcap company with a market cap of Rs 13232.47 crore.

Investment rationale by Jefferies
HEG highlighted FY18 as the best year in its history of more than four decades. Management expects the demand-supply gap to further widen in coming years. Thus, it is contemplating expanding capacity by 20kt to capitalise on the rise in demand. The company has paid off LT & ST debt and has a healthy balance sheet. Maintain Buy with PT of Rs4,400/sh (5.5x FY20E EV/EBITDA).