1. HEG Ltd is a 10 rupee face value diversified company. The main business of HEG is graphite which accounts for 80% of his revenue but company exposer is in hydro-power, ACF, Carbon block sector make it diversified company.
Short Brief of HEG Ltd Business Model:- HEG Ltd set up in 1977, in technical and financial collaboration with Societe
Des Electrodes Et Refractaires Savoie (SERS), a subsidiary of Pechiney of
France.
Graphite
HEG is now the largest integrated graphite plant in the world. Spread
over an area of about 170 acres, HEG (graphite division) has facilities for production
of Graphite Electrodes and Graphite Specialities. Its plant is located at
Mandideep near Bhopal (MP).
The plant has a annual capacity to make 66,000 MT
of UHP grade electrodes.
It has three captive power generation facilities which
can together produce around 77 MW which fulfils almost the entire requirement
of the graphite plant.
HEG also has a dedicated R&D Set-up for Carbon
and Graphite.
Power
Heg Ltd the group's first
hydropower project of 13.5 MW rated capacity in Tawanagar, district Hoshanabad
(M.P.) which was commissioned in 1997. The power generated at this unit is
wheeled to the graphite plant at Mandideep.
Activated Carbon Fabric (ACF)
ACF is a flexible form of activated carbon. The
activated carbon fabric is mechanically weak but highly porous in nature. Due
to this, it possesses unique characteristics as compared to conventional
activated carbon, which is commonly used in granular, palletised, powdered and
moulded form. Due to a thin fibrous shape in activated carbon fabric, a fast
intra-particle adsorption kinetics takes place in gas and liquid phase
adsorption.
Molecules/atoms of pollutants have an affinity
towards activated carbon fabric surface by physical adsorption at low
temperatures.
In physical adsorption there is a Van Der Waals
interaction, having a long range, but weak forces. Molecules of pollutant
bouncing across the activated carbon fabric surface gradually loses its energy
and finally comes to rest on it. Due to weak bonds in the physical adsorption
molecules can be removed from the activated carbon fabric surface by giving a
heat energy. This property is utilised in regenerating activated carbon fabric.
Features of ACF
It is of
minimum 90% pure form of activated carbon
It is soft
and easy to handle
It has a BET
surface area (SBET) of the range from 1,000 to 2,500 m2 g-1 with a high degree
of adsorption and desorption characteristics. Effective adsorption is several
hundred times higher than that of GAC, PAC or palletized activated carbon.
ACF is made
up of filament yarn, due to which ACF is electrically conductive and hence it
can be regenerated by passing a low voltage current across the ACF surface or
by heating ACF at 100 oC for 15 to 30 minutes.
The
distribution of pore size is in narrow range < 10 nm.
Usage
ACF is used in :
Air-conditioner filters.
Air
purifying filters.
Clean rooms.
All other
types of pollution control filters.
Anti
pollution masks - for personal protection against gaseous vapours / fumes and
bad odours.
Refrigerator
deodouriser - to arrest odours in refrigerators.
Cigarette
filters - to trap harmful chemicals present in cigarette smoke.
Carbon Blocks
HEG also makes Fine Grain Carbon Blocks for various
applications on special orders. These blocks are used by the customers to make
value added products like Heat Exchangers, etc.
Graphite Specialities
HEG has a small graphite Speciality division to
cater to the requirements of customers who need Graphite Products in specific
sizes and shapes. These are manufactured to individual customer requirements as
per specs and requirements Sorce:-http://www.hegltd.com/products.aspx (company website).
2. Year high of HEG Ltd is 227.70 year low was 116.10 and stock traded at 162, Year high/ low ratio is below 2 so
I think price of this stock is stable for fresh buy, If you are new reader of
my blog and not familiar with my research terms then please see my research
terms at this link
3. Promoters of HEG Ltd hold 58.79 % . Promoters holding is good with nil pledged stock
4.HEG Ltd This stock have regular dividend paying history since last 5 year HEG Ltd
pay 3 to 8 rupee dividend per year.
| EX Date | Purpose |
| 14/09/2015 | Dividend 3.00 |
| 14/08/2014 | Dividend 6.00 |
| 06/09/2013 | Dividend 8.00 |
| 07/09/2012 | Dividend 5.00 |
| 02/09/2011 | Final Dividend 5.00 |
5. Base price of HEG Ltd is 201.35, So After the recent breakout of 21 April 2016 stock still traded 20% Below from base price So I think from 162 to 180
this stock is a great buy for long term.
6. No any bonus issue right issue and bulk deals is recorded in last 2 year.
7. HEG Ltd net sale per share of FY 14-15 is 310.40.
8. Net sale per share is also good and
Stock is traded near 50% below
from his net sale per share.
9. Book value of HEG Ltd is 235.42 So in book value term this stock is a value buy at CMP.
8. Overall HEG Ltd is good multibagger stock for long
term holding.
9. 200 DMA of HEG Ltd is 160.75 So at CMP 162 HEG Ltd give a positive breakout above 200 DMA ,So I think this
stock is also good for trading so I give a trading call on HEG Ltd at CNBC Awaz
Advisorymandi website.
I put targets of this stock 194.40 and 224.50 on CNBC
Pro advisory championship with a stop loss of 145.80 ( For trading purpose).
My
regular readers already knew that I never use stop loss in my personal buying
read more details about my investment style here:-
If you read my book "The Winning Theory in Stock Market
" then you knew that fundamental target for HEG Ltd is 224.50
11. Disclaimer:- This is not
an advisory service to buy or sell. The contents of “this research report” are
only for educational purposes. No liability is accepted for any content in
“this research report”. The author is neither a registered stockbroker nor a
registered advisor and does not give investment advice. His comments are an
expression of opinion only and should not be construed in any manner whatsoever
as recommendations to buy or sell a stock, option, future, bond, commodity,
index or any other financial instrument at any time.The author recommends
that you consult with a qualified investment advisor, one licensed by
appropriate regulatory agencies in your legal jurisdiction, before making any
investment decisions. Please read full
disclaimer at the bottom of my blog.
12.Discloser:- I Mahesh
Chander Kaushik author of this research report is an existing research analyst
and passed NISM certification for research analysts. I am also registered under
SEBI(RESEARCH ANALYSTS) REGULATIONS, 2014 ( SEBI Registration Number INH
100000908 ) hereby disclose about my financial interest in the subject company
and the nature of such financial interest:- 1 Me and my associates or relatives
have not hold any share of HEG Ltd so my personal interest is not
included in this stock. 2. Me and my associates or relatives have not
any actual/beneficial ownership of one percent or more securities of the
subject company ( HEG Ltd). 3. Me and my associates or relatives
have not any other material conflict of interest at the time of
publication of the research report. 4. Me and my associates or relatives have
not received any type of compensation
from the subject company(HEG Ltd) in the past twelve months. 5. I am not
served as an officer, director or employee of the subject company ( HEG Ltd). 6. I have been not engaged in
market making activity for the subject company (HEG Ltd).
