Don’t miss action in this graphite electrodes company’s stock as Board announces a 5:1 stock split for the first-time ever!

The stock is up by 37 per cent from its 52-week low of Rs 1,466.85 per share.

HEG Ltd informed that the Board of Directors of the company proposes to subdivide each fully paid-up equity share with a face value of Rs 10 into five fully paid-up equity shares with a face value of Rs 2 each. This will require amending the Capital Clause of the Memorandum of Association, subject to shareholder approval through a postal ballot. The specific date for determining shareholders eligible for the split (record date) will be announced later.

HEG Ltd is a leading Indian manufacturer and exporter of graphite electrodes, boasting the world's largest single-site integrated plant for this specialized product. As a cornerstone of the LNJ Bhilwara Group, which also operates in IT services, power generation, and textiles, HEG specializes in producing various grades of graphite electrodes, including ultra-high power, high power, and regular power options. The company operates in a high-tech industry with significant entry barriers, a market it successfully entered in 1976. HEG's dominance is underscored by its status as the world's largest single-site graphite electrode plant.

The company has a market cap of over Rs 7,700 crore and has been maintaining a healthy dividend payout of 31.5 per cent. The shares of the company have a PE of 26x, an ROE of 8 per cent and an ROCE of 9 per cent.

On Wednesday, shares of HEG Ltd plunged 7.30 per cent to Rs 2,009.25 per share from its previous closing of Rs 2,167.40. The stock is up by 37 per cent from its 52-week low of Rs 1,466.85 per share. Investors should keep an eye on this small-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice. 

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