This small-cap graphite company rose by 76 per cent in just 58 trading sessions!

The rise and fall of the company's share price and today it rebounded back.

HEG Ltd share price has been like a roller coaster ride. It started at Rs 200 in March 2017 and skyrocketed to Rs 4300 in August 2018. However, it then began to fall and reached a bottom of Rs 920 in August 2019. After that it experienced another surge in August 2021 but it fell once again. Nevertheless, the company's shares have recently surged from Rs 920.70 on March 31, 2023 to Rs 1622.75 an increase of 76.25 per cent closing today.

In the last month it has surged 41.50 per cent from Rs 1146.8 on May 26, 2023 to 1622.75 today. The company hit a fresh 52-week high on June 20, 2023 at Rs 1747 and it has a 52-week low of Rs 919. It has a market capitalization of around Rs 6200 crore with a face value of Rs 10.

The reason for the increase in share movement:

The global steel sector is predicted to rebound by 2.3 per cent this year and maintain its growth trajectory in 2024, indicating a good market outlook. Countries are switching from blast furnaces to electric furnaces to reduce carbon emissions and greenhouse gas emissions. The company is increasing its manufacturing capacity from 80,000 to 100,000 tonnes and its international market relationships give the company confidence in its ability to succeed quickly.

The company is diversifying into graphite anode for lithium-ion cells forming batteries for electric vehicles and energy storage systems. The company has incorporated a subsidiary of HEG, TACC, and has approved a Rs 1000 crore budget for setting up a manufacturing facility of 10,000 tons of anodes per annum in Phase 1 which should be in operation by Q2 of the calendar year 2025. With increasing domestic demand for graphite anodes the company is working on capacity utilization and may soon operate its pilot plant for trials.

Now talking of year-end financials, the company's net profit grew by 15.48 per cent to Rs 600.48 crore in FY23 from Rs 520 crore. In the same period sales increased from Rs 2201.61 crore to Rs 2467.24 crore.

HEG Ltd is a leading manufacturer and exporter of graphite electrodes in India. It operates the largest single-site integrated graphite electrodes plant in the world. It is a part of the LNJ Bhilwara Group, which also has a presence across IT-enabled services, power generation, and textiles.