Quantitative Equity Report | Release: 21 Nov 2018 13:03:38 UTC+05:30 | Reporting Currency: INR | Trading Currency: INR | Exchange:XNSE/XBSE

NSE CODE:HEG and BSE CODE:509631

HEG LTD Last Close: INR 4349.5 Fair Value: INR 5655.75 Est. Price by Mar 19: INR 6925 Market Capitalization (INR Crores): 17,381 Industry: Other Industrial Goods
Company Profile Fundamental (Historical and Estimated) UPSIDE
Investment/Disinvestment Rationale Particulars Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 E Mar-20 E Mar-21 E Mar-22 E 59%
HEG Limited is engaged in manufacturing of graphite electrodes, which are used by manufacturers of steel. The Price 115 362 236 227 168 228 219 152 275 2831 6925 6321 6822 6962 Capital Asset Pricing Model
Company's segments include Graphite, Power and Unallocable items/others. Return on Equity 19% 23% 16% 8% 12% 9% 4% -1% -6% 60% 82% 49% 39% 31% Beta 1.21
Price to Earning 4.8 9.0 7.8 14.6 6.3 10.5 22.4 -80.6 -22.0 10.5 8.0 8.0 8.0 8.0 Risk Free Rate 7%
Title Mar-18 Mar-19 E Mar-20 E EVTI 1.4 2.0 1.6 1.6 1.3 1.3 1.3 1.4 1.9 4.2 3.7 2.9 2.7 2.4 Market Risk Premium 9%
Sales 2,747.83 7,692.55 8,077.18 EVTIFM 4.8 9.0 7.8 14.6 6.3 10.5 22.4 -80.6 -22.0 10.5 8.0 8.0 8.0 8.0 Equity Mix 98%
EBITDA 1,733.95 5,499.96 5,532.64 Price to Book Value 0.9 2.1 1.2 1.2 0.8 1.0 0.9 0.7 1.3 6.3 6.6 3.9 3.1 2.5 Debt Mix 2%
EBIT 1,661.39 5,296.83 5,013.39 Debt to Equity 1.5 1.0 1.1 1.7 1.6 1.1 1.0 0.8 0.8 0.2 0.3 0.0 0.0 0.0 Cost of Equity 18%
PBT 1,604.71 5,240.15 4,783.13 Dividend Yield 5% 3% 4% 2% 5% 3% 1% 0% 0% 3% 4% 4% 4% 4% Cost of Debt 13%
NPAT 1,081.34 3,459.02 3,157.35 Earning Yield 21% 11% 13% 7% 16% 9% 4% -1% -5% 10% 13% 13% 13% 13% WACC 18%
Price to Earning 10.46 8.00 8.00 Growth Per Share Share holding pattern
Price to Book Value 6.26 6.56 3.94 1-Year 3-Year 5-Year (A) Promoter & Promoter Group 61 STRONG BUY
Debt to Equity 0.16 0.29 - Revenue % 220% 21% 1% (B) FII/FPI 8
Return on Equity 0.60 0.82 0.49 EBIT % 11810% 1268% 780% (C) DII/INSURANCE 11 DCF Mar-19 E Mar-20 E Mar-21 E Mar-22 E Mar-23 E
Enterprise Value to Total Income (EVTI) 4.15 3.72 2.93 Earnings % -2261% 2673% 922% (D) Public holding < 2 lakhs of cap. 11 Cash Flow After Tax 3,631 3,652 3,667 3,674 3,672
Enterprise Value to Total Income to Firm Margin(EVTIFM) 10.35 8.31 7.26 Book Value % 107% 92% 110% (E) Others 9 Terminal Cash Flow Value at the end of 5 years 24,871
Price or Est. Share Prices 2,831.14 6,925.00 6,321.05 Stock Total Return % 928% 1194% 1587% Grand Total 100 Total Fair Value of the Firm's Equity ( Present Value using Discounted Cash Flow Method) 22,600

Mar Cap Cost of Equity Annualized Growth Rate Ann Total Unpledged Qtr Sales Var Qtr Profit Var
S.No Name CMP Rs. B.V. Rs. ROCE % Latest EVTI Latest EVTIFM CMP / BV P/E Debt / Eq Div Yld % SGR % PQEIOI QoQ Sales % QoQ Profits %
Rs.Cr. % ROE % R% Income Prom Hold % % %
1 Graphite India 980.65 19,161.90 232.04 239.38 291.43 57.86 1.90 4.16 4.23 7.06 0.10 1.73 225.21 -350.89 9,556.00 65.22 17.93 19.34 501.28 16.30 3,610.00
2 HEG 4,349.50 17,380.60 807.35 231.91 307.74 90.57 2.41 4.97 5.39 6.60 0.16 1.84 216.76 -727.46 7,256.68 61.04 20.01 13.00 338.00 15.40 682.07 researchwings.in
3 Panasonic Carbon 436.60 209.57 201.81 15.80 16.19 18.75 2.37 22.05 2.16 16.86 - 2.29 9.87 8.47 53.00 63.31 171.78 -6.81 -6.35 -9.04 -6.87 facebook.com/researchwings
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