Buy HEG; target of Rs 5000: ICICI Direct
ICICI Direct is bullish on HEG has recommended buy rating on the stock with a target price of Rs 5000 in its research report dated August 07, 2018.
September 18, 2018 / 01:45 PM IST
ICICI Direct's research report on HEG
HEG has been one of the good wealth creators for investors with the stock price nearly multiplying ~9x since our Company Update in August-2017. Strong demand for graphite electrodes from the EAF steel making route amid supply constraints has led to a sharp increase in graphite electrodes prices thereby resulting in healthy profitability. The continued favourable operating environment puts domestic player like HEG in a sweet spot.
We maintain our BUY rating on the stock. A strong balance sheet and robust cash flow generation and a healthy dividend payout, going forward, reiterate our positive stance on the company.
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