HEG - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.5
| Stock Code | HEG | Market Cap | 10,472 Cr. | Current Price | 543 ₹ | High / Low | 672 ₹ |
| Stock P/E | 43.8 | Book Value | 224 ₹ | Dividend Yield | 0.33 % | ROCE | 5.19 % |
| ROE | 3.40 % | Face Value | 2.00 ₹ | DMA 50 | 553 ₹ | DMA 200 | 519 ₹ |
| Chg in FII Hold | 0.55 % | Chg in DII Hold | 0.16 % | PAT Qtr | 131 Cr. | PAT Prev Qtr | 71.8 Cr. |
| RSI | 45.6 | MACD | -7.97 | Volume | 7,55,355 | Avg Vol 1Wk | 10,07,303 |
| Low price | 331 ₹ | High price | 672 ₹ | PEG Ratio | -1.51 | Debt to equity | 0.15 |
| 52w Index | 62.0 % | Qtr Profit Var | 111 % | EPS | 12.4 ₹ | Industry PE | 36.3 |
📊 HEG shows mixed fundamentals with weak ROE/ROCE and high P/E compared to industry peers, but recent profit growth and institutional buying provide some support. Technical indicators (RSI at 45.6, MACD negative, price slightly above 200 DMA but below 50 DMA) suggest consolidation with limited upside. It is a cautious candidate for swing trading, suitable only with strict stop-loss levels.
💡 Optimal Entry Price: Around 530–540 ₹ (near support zone).
📈 Exit Strategy: If already holding, consider booking profits near 570–580 ₹ resistance, or exit if price falls below 520 ₹.
Positive ✅
- Quarterly PAT improved significantly from 71.8 Cr. to 131 Cr. (+111%).
- EPS of 12.4 ₹ supports profitability visibility.
- Debt-to-equity ratio of 0.15 indicates manageable leverage.
- Price trading above 200 DMA (519 ₹), showing medium-term support.
- FII (+0.55%) and DII (+0.16%) holdings increased, reflecting institutional confidence.
Limitation ⚠️
- P/E of 43.8 higher than industry average (36.3), suggesting premium valuation.
- ROCE (5.19%) and ROE (3.40%) are weak compared to peers.
- Dividend yield of 0.33% is negligible.
- MACD negative (-7.97) signals bearish undertone.
- RSI at 45.6 indicates weak momentum.
- Trading volume (7.5 lakh) below 1-week average (10 lakh), suggesting reduced participation.
- PEG ratio of -1.51 highlights valuation concerns relative to growth.
Company Negative News 📉
- No major external negative news reported, but weak efficiency metrics and bearish technical signals are concerns.
Company Positive News 📈
- Strong quarterly profit growth (+111%).
- Institutional investors increasing stake shows confidence in future performance.
Industry 🌐
- Industry P/E at 36.3 highlights sector trades at a premium.
- Graphite electrode industry benefits from steel demand cycles, though cyclical risks remain.
Conclusion 📝
HEG is a cautious swing trade candidate with strong profit recovery and institutional support, but weak efficiency metrics and bearish technical indicators limit short-term upside. Entry near 530–540 ₹ offers limited risk. Exit around 570–580 ₹ or below 520 ₹ if momentum weakens. Suitable only for short-term trades with strict risk management.