HEG - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.2

📈 Analysis: HEG presents a strong swing trade setup with bullish technical momentum and a sharp earnings rebound. The current price of ₹580 is well above both the 50 DMA (₹526) and 200 DMA (₹492), confirming a sustained uptrend. RSI at 69.4 and MACD at 18.2 indicate strong momentum, though nearing overbought territory. The company posted a dramatic turnaround in PAT from -₹61.7 Cr. to ₹71.8 Cr., and institutional sentiment is positive with both FII (+0.68%) and DII (+0.39%) holdings rising. However, valuation concerns persist with a high P/E (65.6), negative PEG (-2.27), and modest ROCE/ROE. Volume is also below average, suggesting cautious participation.

🎯 Optimal Entry Price: ₹560–₹570 (on minor pullback near 50 DMA)

🚪 Exit Strategy (if holding): Consider exiting near ₹610–₹620 (recent high zone) or if RSI crosses 75 with MACD flattening.

✅ Positive

• 📈 Price above 50 & 200 DMA — strong bullish trend
• 📊 PAT turnaround from loss to ₹71.8 Cr. — earnings momentum
• 📈 FII (+0.68%) and DII (+0.39%) holdings increased — institutional confidence
• 📉 Debt-to-equity ratio of 0.14 — low leverage
• 📈 RSI and MACD indicate strong momentum

⚠️ Limitation

• 📉 High P/E (65.6) vs industry — overvaluation risk
• 📉 PEG ratio of -2.27 — poor growth valuation
• 📉 ROCE (5.19%) and ROE (3.40%) — weak capital efficiency
• 📉 Volume below weekly average — reduced trading interest
• 📉 Dividend yield of 0.31% — minimal income support

📰 Company Negative News

• No major public negative news, but valuation and efficiency metrics are cautionary

🌟 Company Positive News

• Massive quarterly profit recovery and rising institutional interest reflect renewed confidence and operational turnaround

🏭 Industry

• Industry P/E is 39.9 — HEG trades at a premium, reflecting speculative optimism
• Graphite electrode sector benefits from steel demand and global industrial recovery

🧾 Conclusion

HEG is a technically strong swing trade candidate with improving fundamentals. Entry near support offers a tactical opportunity. Exit near resistance or on RSI/MACD reversal is advisable.

I can also help you compare HEG’s setup with peers like Graphite India or Rain Industries to refine your swing strategy.