HEG - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | HEG | Market Cap | 9,438 Cr. | Current Price | 489 ₹ | High / Low | 672 ₹ |
| Stock P/E | 33.4 | Book Value | 224 ₹ | Dividend Yield | 0.37 % | ROCE | 5.19 % |
| ROE | 3.40 % | Face Value | 2.00 ₹ | DMA 50 | 538 ₹ | DMA 200 | 524 ₹ |
| Chg in FII Hold | 0.55 % | Chg in DII Hold | 0.16 % | PAT Qtr | 141 Cr. | PAT Prev Qtr | 131 Cr. |
| RSI | 35.4 | MACD | -14.2 | Volume | 6,15,471 | Avg Vol 1Wk | 9,03,682 |
| Low price | 405 ₹ | High price | 672 ₹ | PEG Ratio | -1.16 | Debt to equity | 0.15 |
| 52w Index | 31.3 % | Qtr Profit Var | 43.7 % | EPS | 14.6 ₹ | Industry PE | 31.5 |
📊 HEG Ltd shows weak-to-moderate swing trade potential. The RSI at 35.4 indicates oversold conditions, while MACD (-14.2) remains negative, suggesting weak momentum. Fundamentals are modest with ROCE at 5.19% and ROE at 3.40%. Valuation is slightly stretched with a P/E of 33.4 compared to industry average (31.5). The optimal entry price would be near support around 480–490 ₹. If already holding, consider exiting near resistance around 530–540 ₹ unless momentum improves.
✅ Positive
- EPS of 14.6 ₹ supports earnings visibility
- Quarterly profit growth (PAT up from 131 Cr. to 141 Cr.)
- FII holdings increased by 0.55% and DII by 0.16%, showing investor confidence
- Dividend yield of 0.37% adds shareholder value
- Strong 52-week performance (31.3%)
⚠️ Limitation
- Low efficiency ratios: ROCE 5.19%, ROE 3.40%
- Weak technical indicators: RSI oversold, MACD negative
- Price trading below both 50 DMA (538 ₹) and 200 DMA (524 ₹)
- Negative PEG ratio (-1.16) reflects growth concerns
📉 Company Negative News
- Weak profitability metrics compared to peers
- Technical weakness with MACD negative
📈 Company Positive News
- Quarterly profit growth of 43.7%
- Increase in both FII and DII holdings
- Strong 52-week performance (31.3%)
🏭 Industry
- Industry P/E at 31.5, close to HEG’s 33.4, suggesting fair valuation
- Graphite and electrode sector remains cyclical but benefits from industrial demand
🔎 Conclusion
HEG Ltd is financially stable with recent profit growth and investor support, but weak efficiency ratios and poor technical indicators limit swing trade attractiveness. Entry around 480–490 ₹ is optimal, with exit near 530–540 ₹ if resistance holds. Long-term investors may continue holding due to sector resilience, while swing traders should remain cautious until momentum indicators improve.