H.E.G. Ltd.
NSE: HEGH.E.G. Ltd.: A 30-second snapshot
HEG Ltd, a graphite electrode manufacturer classified in the Infrastructure sector, trades at ₹617.65 — up 33.79% over the past 12 months and above both the 50-DMA (₹571.72) and 200-DMA (₹542.85). The trailing P/E stands at 31.61 with a quality score of 40 out of a peer range where BEL leads at 57; the stock reported a Q4 FY26 net loss of ₹114 crore despite 12% revenue growth, and carries a D/E ratio of 16.73.
P/E
31.6
Forward P/E
20.0
ROE
+7.3%
Debt / Equity
16.73
Profit Margin
+12.6%
Div. Yield
+0.3%
5Y ROE > 15%
0/5
5Y FCF > 0
2/5
Quality
35/100
News
8 headlines · 1 positive · 4 negative
HEG Ltd Creditors Vote on Plan to Split Graphite and Energy Businesses - Whalesbook
Whalesbook
HEG Scheme Approved: All Three NCLT-Convened Meetings Pass Resolution on May 5, 2026 - scanx.trade
scanx.trade
HEG Shares Crash 11% in Today's Trading Session; Here's Why - Trade Brains
Trade Brains
Stock Crash: HEG shares tank after revenue drop, wider operating loss in Q4 - CNBC TV18
CNBC TV18
Heg Ltd Posts March-Quarter Consol Loss 1.14 Billion Rupees - TradingView
TradingView
Recent context
- ·On 2026-04-29 to 2026-04-30, HEG reported Q4 FY26 results showing a consolidated net loss of ₹114 crore and a revenue decline, triggering an approximately 11% single-session decline per Trade Brains.
- ·On 2026-05-05, creditors voted at three NCLT-convened meetings to approve a scheme to split HEG into separate graphite and energy businesses; all three meetings passed the resolution per scanx.trade.
- ·The proposed demerger of graphite and energy businesses introduces structural uncertainty: ownership structure, debt allocation between the two entities, and continuity of financials post-split have not been publicly resolved.
Strengths
- +Revenue growth of 11.2% over 5 years demonstrates sustained top-line expansion for a cyclical industrial manufacturer.
- +Current price of ₹617.65 is above both the 50-DMA (₹571.72) and 200-DMA (₹542.85), with RSI at 55.14 in neutral territory — the medium-term price trend is upward.
- +Forward P/E of 19.95 represents a 36.9% compression from the trailing P/E of 31.61, reflecting analyst expectations of an earnings improvement from the current loss quarter.
- +At P/E 31.61, HEG trades at a 5.6% discount to peer L&T (33.40) and an 8.4% discount to BEL (51.98), though the comparison is limited by the Q4 loss clouding trailing earnings quality.
Weaknesses
- −Q4 FY26 produced a net loss of ₹114 crore alongside a wider operating loss, indicating that cost pressures or electrode pricing weakness is severe enough to eliminate the benefit of 12% revenue growth.
- −D/E of 16.73 is materially above the typical range for industrial manufacturers; with a flat debt trend and a loss-making quarter, interest coverage is under pressure.
- −FCF has been positive in only 2 of the tracked years, with a persistence consistencyScore of 0 and zero years where ROE exceeded 15% — the earnings quality and capital efficiency record is weak.
- −Quality score of 40 ranks 4th of 6 tracked Infrastructure peers, ahead of only L&T (26) and Cummins India (24) on this composite metric.
Open questions
- ?How has the graphite electrode industry pricing cycle evolved over the past 3 years, and what is driving the Q4 FY26 operating loss despite 12% revenue growth — input costs, export realisations, or product mix?
- ?If the NCLT demerger into separate graphite and energy entities is approved, how would the existing D/E of 16.73 be allocated across the two businesses, and what would each entity's standalone debt-service profile look like?
- ?Does the forward P/E of 19.95 reflect analyst assumptions of a one-quarter earnings dip followed by recovery, or a more sustained rerating of the business — and on what production/pricing assumptions is that based?
- ?How does HEG's graphite electrode capacity utilisation and order-book visibility for FY27 compare to global peers, given the structural shift toward electric arc furnace steelmaking as a long-term demand driver?
Peer comparison: Infrastructure
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| HEG | H.E.G. Ltd.You're viewing | 31.6 | +7.3% | 40 |
| Industry avg | across 5 peers | 69.5 | +17.5% | 40 |
| BEL | Bharat Electronics Ltd. | 52.0 | — | 57 |
| ABB | ABB India Ltd. | 87.1 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 108.6 | +19.6% | 45 |
| LT | Larsen & Toubro Ltd. | 33.4 | +15.5% | 26 |
| CUMMINSIND | Cummins India Ltd. | 66.5 | — | 24 |
Technical state
Current price
₹617.65
SMA 50
₹571.72
SMA 200
₹542.85
RSI (14)
55.1 (neutral)
From 52w high
-10.5%
1Y return
+33.8%
3M return
+10.2%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highQ4 FY26 net loss of ₹114 crore alongside a wider operating loss reported by CNBC TV18, indicating cost or pricing pressures that erased top-line gains from 12% revenue growth.
- highD/E of 16.73 is materially elevated for an industrial graphite electrode manufacturer; debt trend is flat while quarterly operating income is negative, raising debt-service capacity concerns.
- highFCF positive in only 2 of the available years; persistence consistencyScore of 0 and roeYearsAbove15 of 0 indicate no demonstrated track record of sustained returns on equity.
- medium4 of 8 recent news items carry negative sentiment, all clustering around the Q4 FY26 earnings event (revenue drop, wider operating loss, single-session decline of ~11% on 2026-04-30); overall news label is negative.
- lowAnalyst coverage is sparse at only 2 analysts; sector peer priceChange1Y data is unavailable for all 5 listed peers, limiting cross-sectional comparability.
Cross-section contradictions
- Stock is up 33.79% over 1 year and trades above both the 50-DMA (₹571.72) and 200-DMA (₹542.85), while Q4 FY26 produced a net loss of ₹114 crore and a wider operating loss — price momentum is running well ahead of the near-term earnings trajectory.
- Annual P/E of 31.61 implies a profitable full-year result, yet the most recent quarterly filing shows a net loss; the annual and quarterly earnings data appear to conflict and warrant verification against audited financials.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 24 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 16 May 2026 · rotates through NIFTY 500 every ~5 days