Moneycontrol
Last Updated : Nov 27, 2018 11:56 AM IST | Source: Moneycontrol.com

HEG gains on approval of buyback, expansion plan; Macquarie maintains outperform

Research house Macquarie has maintained outperform call on the stock with a target at Rs 5,823 per share.

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Shares of HEG advanced nearly 1 percent intraday Tuesday on the back of approval of buyback and expansion plan.

Company board in its meeting held on November 26 approved a proposal to buyback upto 13,63,636 equity shares of the company (3.41 percent) for an aggregate amount not exceeding Rs 750 crore at Rs 5,500 per equity share.

The board also approved an investment proposal of Rs 1,200 crore for the expansion plan of Graphite Electrodes and related products capacity by 20,000 tonne per annum (TPA).

Research house Macquarie has maintained outperform call on the stock with a target at Rs 5,823 per share.

According to Research house the announced capex of USD 175 million will increase company's growth visibility.

It expects only a moderation of margin in FY20, while current upcycle is continuing. The high payback to investors should drive re-rating, it added.

At 10:07 hrs HEG was quoting at Rs 4,380.10, up Rs 19.70, or 0.45 percent on the BSE.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.

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First Published on Nov 27, 2018 10:10 am
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