HEG Ltd - one of the largest producers of Graphite Electrodes in Asia ,is a member of LNJ Bhilwara Group.Graphite Electrode is using to produce Steel through Electric Arc Furnace Route .Needle Coke is the raw material for producing Graphite Electrode.Company having a manufacturing capacity of 66,000 MT P/A and about 80 % of this is exporting to various countries.Company is supplying about 8 % of total world production of Graphite Electrode.Worldwide 35% of steel is produced through Electric Arc Furnace Route.Its customer list includes include Arcelormittal, Nucor ,Posco, Megasa Evraz,Hyundai Steel ,Tata Steel ..etc It is a power intensive industry where 5000 unit power is needed to produce one ton of graphite electrode.In such an industry HEG’s 77 MW captive power plant is a big positive. Due to revival in demand and price in recent times , HEG is now increasing its production capacity from 66000 ton to 80000 ton P/A.The demand scenario is improving worldwide and company is expected to benefit a lot going forward.For the December quarter HEG Posted a sales of Rs.418 Cr and a net profit of Rs.25 Cr .Recently company concluded a Buy Back of its own shares at a cost of Rs.67 Cr.In addition to this buy back ,promoters are hiking their stake very aggressively through open market purchases.Considering HEG’s leadership position in this industry and improving prospects of business ,recommending a Buy at CMP Rs.218/- for long term investment.
sir again a great stock ... just wanted to ask u about advanta, what is ur expectation form result this time around and also do u think suven life science is a buy at current market rate
ReplyDeleteNot tracking Suven life
DeleteThanks Sir.
ReplyDeleteHEG will benefit additionally from depreciating Rupee, which makes it more competitive.
Pl keep up your great guidance.
HELLO SIR,
ReplyDeleteHATS OFF TO UR VALUABLE WORK EDUCATING PEOPLE ABOUT STOCK MARKET,
I WISH TO HAVE UR OPINION ABOUT REAL ESTATE COMPANIES..
WHT DO U THINK ABOUT PRAJAY ENGINEERS SYNDICATE LTD. AND SHAKTI PUMPS @ CMP.
Shakthi pump is a HOLD for me.
Deletedear sir,
ReplyDeleteon the same basis how do you rate graphite india.
which one is better.
regards
Dear Value Pick,
ReplyDeleteWhat are comments on advanta, can you through some light on note no 5 of stand alone results.
Regards Mohan Rao
Waiting for some clarifications from the management , will update soon on this matter.
Deleteupdate on COchin mineral please hold/buy/sell
ReplyDeleteBook at least partial profit in Cochin Minerals
Deletesir,what is your view /opinion on manappuram finance at CMP?
ReplyDeleteis it a value pick for long term?
After recent RBI rule, entire stocks from this sector lost its charm and may not come back in near future....
Deletedear value,
ReplyDeleteresult of HEG declared. huge drop in Q2Q amd Y2Y net profit. plz give quick suggestion as i have huge cash buying in it.
PATIDAR
Dear Patidar
ReplyDeleteThere is an exceptional loss on account of forex in this quarter.I strongly believe that there is some adjustments in it.Because ,the accounts are prepared as at 31 March and value of forex hedge is calculated on the basis of that date.It is noted that the promoters were buying very aggressively from the open market even in the month of April.Any kid may know if the company declare this type of a result share price will come down.Then why they bought shares in the month of April even after the March end figures(at least provisional)available with them.So I feel they have still plans to buy more from open market and hence they report such a forex loss to bring down share price.Since it is a notional loss not difficult to reverse in subsequent quarters when they complete desired quantity.Anyway , it is very difficult to calculate forex losses of any company by an outsider and may surprise in some cases like this.If you have patience to hold it for long term just hold it ,otherwise book loss and come out.