HEG - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 2.5
| Stock Code | HEG | Market Cap | 10,385 Cr. | Current Price | 539 ₹ | High / Low | 690 ₹ |
| Stock P/E | 57.5 | Book Value | 223 ₹ | Dividend Yield | 0.33 % | ROCE | 5.76 % |
| ROE | 4.27 % | Face Value | 2.00 ₹ | DMA 50 | 566 ₹ | DMA 200 | 547 ₹ |
| Chg in FII Hold | 1.71 % | Chg in DII Hold | -3.52 % | PAT Qtr | -163 Cr. | PAT Prev Qtr | 141 Cr. |
| RSI | 41.7 | MACD | -14.8 | Volume | 5,50,095 | Avg Vol 1Wk | 7,32,122 |
| Low price | 460 ₹ | High price | 690 ₹ | PEG Ratio | -2.17 | Debt to equity | 0.18 |
| 52w Index | 34.2 % | Qtr Profit Var | -165 % | EPS | 9.36 ₹ | Industry PE | 36.3 |
HEG Ltd shows weak fundamentals with low ROCE (5.76%) and ROE (4.27%), alongside a negative PEG ratio (-2.17) indicating poor valuation relative to growth. The company reported a sharp earnings decline (₹141 Cr. → -₹163 Cr.), raising caution. The current price (₹539) is below both the 50 DMA (₹566) and 200 DMA (₹547), reflecting short-term and medium-term weakness. RSI at 41.7 suggests oversold conditions, while MACD at -14.8 confirms bearish momentum. Despite modest FII inflows (+1.71%), DII holdings decreased (-3.52%), showing reduced domestic confidence. Overall, HEG is a weak swing trade candidate with limited upside potential.
🎯 Optimal Entry Price
Entry around ₹520–₹530 (near support zone) may be considered cautiously for swing trading.
📈 Exit Strategy
If already holding, consider exiting near ₹560–₹570 (resistance zone close to 50 DMA). A strict stop-loss below ₹510 is advisable to manage risk.
✅ Positive
- 📌 EPS of ₹9.36 provides earnings base.
- 📌 Dividend yield of 0.33% offers modest returns.
- 📌 Book value of ₹223 provides valuation cushion.
- 📌 FII holdings increased (+1.71%), showing foreign investor confidence.
- 📌 Debt-to-equity ratio of 0.18 indicates manageable leverage.
⚠️ Limitation
- 📌 Weak ROCE (5.76%) and ROE (4.27%).
- 📌 Negative quarterly PAT (-₹163 Cr.).
- 📌 RSI at 41.7 indicates oversold but weak momentum.
- 📌 MACD at -14.8 confirms bearish trend.
- 📌 P/E (57.5) above industry average (36.3) suggests overvaluation.
- 📌 Negative PEG ratio (-2.17) reflects poor growth alignment.
- 📌 DII holdings decreased (-3.52%), showing reduced domestic confidence.
📰 Company Negative News
- 📌 Quarterly profit turned negative, raising caution.
- 📌 Domestic institutional investors reduced holdings.
🌟 Company Positive News
- 📌 Foreign institutional investors increased stake despite weak fundamentals.
- 📌 Dividend yield and book value provide limited downside cushion.
🏭 Industry
- 📌 Industry P/E at 36.3 is lower than HEG’s 57.5, suggesting relative overvaluation.
- 📌 Graphite sector remains cyclical, dependent on steel and industrial demand.
🔎 Conclusion
HEG Ltd is a weak swing trade candidate due to poor fundamentals, negative earnings, and bearish technical indicators. Entry near ₹520–₹530 may be considered cautiously, with profit booking advisable near ₹560–₹570. Strict stop-loss management below ₹510 is essential to mitigate downside risk.
Would you like me to expand this into a short-term trading plan or a peer comparison to see how HEG stacks up against other graphite and industrial companies?