Graphite Electrodes Maker's Stock Jumped by 18.15 Per Cent to Its Intraday High on Tuesday; The Company Announced an Investment of Rs 250 Crore
With a PE ratio of 41.9, the company trades at a premium compared to the industry PE of 21.1. The company has a ROCE of 8.54 per cent and an ROE of 7.14 per cent.
On March 25, the shares of HEG Limited soared by 18.15 per cent on an intraday basis to the day's high of Rs 510 from the previous close of Rs 431.60. The stock price has made a 52-week high of Rs 619.25 and a 52-week low of Rs 332.20 on BSE. HEG Limited is a Group A stock in the BSE stock universe. In the last year, the stock price of the company has given 27 per cent returns, whereas in the last 5 years, it has given 431 per cent returns.
Earlier on March 10, HEG Limited announced that its Board of Directors has approved an investment agreement with Singularity Growth Opportunities Fund II and Bhilwara Energy Limited (BEL). The deal involves an initial investment of Rs 250,00,22,488 (Rs 250 crore) by Singularity and its affiliates for the subscription of 1,75,95,979 equity shares in BEL, giving them a 9.6 per cent stake in the company post-issuance.
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Additionally, Singularity has the option to invest another Rs 250,00,00,000 (Rs 250 crore) under an 'Additional Investment Right.' The price per share for this second investment will be the higher of Rs 142.08 per share or the fair market value at the time of investment.
HEG Limited currently holds 49.01 per cent of BEL’s share capital, which will be reduced to 44.30 per cent following this investment. The agreement also grants Singularity the right to nominate one director on BEL’s board and participate in certain governance matters.
In the Quarterly Results of December 2024, the company reported a revenue of Rs 478.38 crore, reflecting a YoY decline of 14.94 per cent compared to Rs 562.40 crore in December 2023. The operating profit stood at Rs 66.93 crore, marking a 22.75 per cent decline from Rs 86.64 crore in the same quarter last year. However, the profit after tax (PAT) increased by 90.98 per cent to Rs 83.40 crore from Rs 43.67 crore in December 2023.
In FY24, the company posted a revenue of Rs 2,393.27 crore, registering a 2.81 per cent decline compared to Rs 2,462.56 crore in FY23. The net profit for the year stood at Rs 311.68 crore, down 41.46 per cent from Rs 532.41 crore in the previous financial year.
With a PE ratio of 41.9, the company trades at a premium compared to the industry PE of 21.1. The company has a ROCE of 8.54 per cent and an ROE of 7.14 per cent.
Investors must keep this small-cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.