HEG, a leading entity within the LNJ Bhilwara Group, has witnessed a remarkable turnaround in its stock performance, soaring by over 105% in the past year and an astounding 365% in the span of four years.
From experiencing a prolonged downward trend between October 2021 and March 2023, the company’s shares have rebounded significantly, consistently charting an upward trajectory. Currently trading at ₹1,902, up from ₹920.70, this remarkable surge has delivered impressive returns of 107% to its shareholders. Moreover, from its low of ₹409 in March 2020, the stock has surged by 365%.
HEG, established in 1977, is renowned for its expertise in graphite electrode production, particularly in Ultra High Power (UHP) electrodes. It operates the world’s largest single-site graphite electrode plant, recently expanded to 100,000 tons, making it the third-largest producer in the Western world.
Domestic brokerage firm ICICI Direct Research has expressed confidence in HEG’s prospects, attributing its ‘buy’ rating to structural demand drivers, capacity expansion, and opportunities in the graphite anode business. The brokerage has set a target price of ₹2,420 per share, signaling a potential upside of 27.3% from the previous closing price.
Highlighting the global shift towards environmentally friendly steel production through the Electric Arc Furnace (EAF) route, ICICI Direct Research underscores HEG’s strong positioning as one of the top global graphite electrode producers. The company is well-poised to capitalize on the increasing demand for graphite electrodes driven by the growing adoption of the EAF route.
Additionally, HEG’s foray into the manufacturing of graphite anode for Li-On batteries, catering to the burgeoning E-mobility sector, presents promising prospects. With a capacity of 20,000 tons and expected commissioning in H2FY26, HEG aims to capitalize on the growing demand for graphite anode, aligning with the government’s initiatives to localize battery components.
Overall, HEG’s strategic positioning, coupled with its ventures into new growth areas, positions it favorably for sustained growth and value creation in the coming years.
