Go Ad-Free
    My Alerts
    Moneycontrol
    Moneycontrol PRO
    HomeNewsBusinessStocksHold HEG Ltd; target of Rs 275: ICICI Direct

    Hold HEG Ltd; target of Rs 275: ICICI Direct

    ICICI Direct recommended hold rating on HEG Ltd with a target price of Rs 275 in its research report dated June 07, 2017.

    June 08, 2017 / 16:16 IST
       
       
      26 Aug, 2025 12:21
      Volume
      Todays L/H
      More

      ICICI Direct's research report onHEG Ltd

      After subdued capacity utilisation over the last few quarters, HEG reported healthy utilisation level for Q4FY17 (80% in Q4FY17 compared to capacity utilisation of 75% in Q3FY17, 65% in Q2FY17 and 50% in Q1FY17). Demand for graphite electrodes has started picking up after inventory correction at the customer’s end.

      Outlook

      On the back of consolidation in the global industry coupled with the oligopoly nature of the graphite electrode market, we value the stock on an SOTP basis. We value the core business at 8.5x FY19E EV/EBITDA (from 7x earlier) and assign a 20% discount to HEG’s stake in BEL. Subsequently, we arrive at a target price of Rs 275. We have a HOLD rating on the stock.

      For all recommendations, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

      Read More Read More

      first published: Jun 8, 2017 04:16 pm

      Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

      Subscribe to Tech Newsletters

      • On Saturdays

        Find the best of Al News in one place, specially curated for you every weekend.

      • Daily-Weekdays

        Stay on top of the latest tech trends and biggest startup news.

      Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347