HEG shares hit 52-week high today; doubled investor wealth in a year; what’s next?

HEG shares hit 52-week high today; doubled investor wealth in a year; what’s next?

HEG stock rose 6.13% to Rs 2038 on BSE. Market cap of the firm stood at Rs 7506.25 crore.

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HEG shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.HEG shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
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Aseem Thapliyal
  • Mar 22, 2024,
  • Updated Mar 22, 2024 1:41 PM IST

Shares of graphite electrode manufacturer HEG Ltd hit their 52 week high on Friday. The stock rose 6.13% to Rs 2038 on BSE. In the afternoon session, total 0.76 lakh shares of HEG changed hands amounting to a turnover of Rs 15.12 crore on BSE. Market cap of the firm stood at Rs 7506.25 crore. 

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HEG shares have gained 103% in a year and risen 0.95% since the beginning of this year. Total 0.76 lakh shares of HEG changed hands amounting to a turnover of Rs 15.12 crore on BSE. Market cap of the firm rose to Rs 7518 crore. 

In terms of technicals, the relative strength index (RSI) of HEG stood at 62, signaling it's trading neither in the overbought nor in the oversold zone. HEG stock has a one-year beta of 0.9, indicating average volatility during the period. HEG shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

 

Brokerage Axis Securities said the stock can be bought in a range of Rs 1,870- Rs 1,834. One should fix a stop loss of Rs 1700 for a target price of Rs 2,160-2,220.

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"HEG demonstrates a bullish breakout above the 'falling channel' pattern at Rs 1,850 on the weekly chart, signaling a positive bias. Volume activity diminished during the pattern formation and surged at the breakout, signaling heightened market participation during the breakout phase. The stock closing above the daily upper Bollinger band signifies a buy signal for the short term as well. The weekly strength indicator RSI has given a crossover above its reference line, generating a buy signal. The above analysis indicates an upside potential of Rs 2,160-2,220 levels," said the brokerage.

Brokerage Prabhudas Lilladher has a short term target of Rs 1890 for the HEG stock and stop loss can be fixed at Rs 1590.

ICICI Direct Research has a target price of Rs 2420 in 12 months  for the HEG stock.

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“We have assigned BUY rating on HEG, on the back of structural demand drivers in place amid ongoing global shift towards EAF route of steelmaking, capacity expansion led volume growth in offering & graphite anode business.  We assign a target price of Rs 2,420 to HEG thereby valuing it on SoTP basis, i.e. 7.5x EV/EBITDA on core graphite electrode business, 2x P/B on equity investment in BEL and 1x CWIP to graphite anode business, all on FY26E,” said the brokerage.

HEG is a manufacturer of graphite electrodes, which are used as a raw material in steel production via the EAF route, significantly less polluting (three-fourths reduced emission) vs. the more traditional blast furnace or BF route.

 

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

Shares of graphite electrode manufacturer HEG Ltd hit their 52 week high on Friday. The stock rose 6.13% to Rs 2038 on BSE. In the afternoon session, total 0.76 lakh shares of HEG changed hands amounting to a turnover of Rs 15.12 crore on BSE. Market cap of the firm stood at Rs 7506.25 crore. 

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Related Articles

HEG shares have gained 103% in a year and risen 0.95% since the beginning of this year. Total 0.76 lakh shares of HEG changed hands amounting to a turnover of Rs 15.12 crore on BSE. Market cap of the firm rose to Rs 7518 crore. 

In terms of technicals, the relative strength index (RSI) of HEG stood at 62, signaling it's trading neither in the overbought nor in the oversold zone. HEG stock has a one-year beta of 0.9, indicating average volatility during the period. HEG shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

 

Brokerage Axis Securities said the stock can be bought in a range of Rs 1,870- Rs 1,834. One should fix a stop loss of Rs 1700 for a target price of Rs 2,160-2,220.

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"HEG demonstrates a bullish breakout above the 'falling channel' pattern at Rs 1,850 on the weekly chart, signaling a positive bias. Volume activity diminished during the pattern formation and surged at the breakout, signaling heightened market participation during the breakout phase. The stock closing above the daily upper Bollinger band signifies a buy signal for the short term as well. The weekly strength indicator RSI has given a crossover above its reference line, generating a buy signal. The above analysis indicates an upside potential of Rs 2,160-2,220 levels," said the brokerage.

Brokerage Prabhudas Lilladher has a short term target of Rs 1890 for the HEG stock and stop loss can be fixed at Rs 1590.

ICICI Direct Research has a target price of Rs 2420 in 12 months  for the HEG stock.

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“We have assigned BUY rating on HEG, on the back of structural demand drivers in place amid ongoing global shift towards EAF route of steelmaking, capacity expansion led volume growth in offering & graphite anode business.  We assign a target price of Rs 2,420 to HEG thereby valuing it on SoTP basis, i.e. 7.5x EV/EBITDA on core graphite electrode business, 2x P/B on equity investment in BEL and 1x CWIP to graphite anode business, all on FY26E,” said the brokerage.

HEG is a manufacturer of graphite electrodes, which are used as a raw material in steel production via the EAF route, significantly less polluting (three-fourths reduced emission) vs. the more traditional blast furnace or BF route.

 

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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