HEG - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | HEG | Market Cap | 10,110 Cr. | Current Price | 523 ₹ | High / Low | 672 ₹ |
| Stock P/E | 42.2 | Book Value | 224 ₹ | Dividend Yield | 0.34 % | ROCE | 5.19 % |
| ROE | 3.40 % | Face Value | 2.00 ₹ | DMA 50 | 555 ₹ | 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 | 39.7 | MACD | -6.11 | Volume | 6,01,330 | Avg Vol 1Wk | 11,77,184 |
| Low price | 331 ₹ | High price | 672 ₹ | PEG Ratio | -1.46 | Debt to equity | 0.15 |
| 52w Index | 56.3 % | Qtr Profit Var | 111 % | EPS | 12.4 ₹ | Industry PE | 38.4 |
📈 Chart & Trend Analysis: HEG is trading at ₹523, below its 50 DMA (₹555) but marginally above the 200 DMA (₹519). This indicates short-term weakness but medium-term support. RSI at 39.7 suggests the stock is nearing oversold territory, while MACD at -6.11 confirms bearish momentum. Bollinger Bands show price drifting toward the lower band, reflecting selling pressure and possible consolidation.
📊 Volume Trends: Current volume (6.0 lakh) is lower than the 1-week average (11.8 lakh), suggesting reduced participation and limited momentum strength.
🎯 Entry Zone: ₹510 – ₹525 (support near 200 DMA)
🚪 Exit Zone: ₹560 – ₹580 (resistance near 50 DMA and upper consolidation zone)
🔎 Trend Status: Consolidating with bearish bias — price is struggling below the 50 DMA, with weak RSI and negative MACD confirming downside pressure. A bounce from oversold levels could trigger short-term recovery, but trend remains weak.
Positive ✅
- Quarterly PAT growth (₹131 Cr vs ₹71.8 Cr) shows strong earnings momentum.
- EPS of ₹12.4 supports valuation strength.
- FII holdings increased (+0.55%) and DII holdings increased (+0.16%), reflecting institutional confidence.
- 52-week performance index gain of 56.3% highlights long-term resilience.
Limitation ⚠️
- Price trading below 50 DMA indicates short-term weakness.
- ROE (3.40%) and ROCE (5.19%) are weak compared to sector leaders.
- PEG ratio of -1.46 highlights poor growth-adjusted valuation.
- Dividend yield of 0.34% is relatively low.
- Volume participation is below average, limiting breakout potential.
Company Negative News 📉
- Weak ROE and ROCE metrics reflect poor efficiency.
- Stock P/E of 42.2 is higher than industry average (38.4), suggesting stretched valuations.
Company Positive News 📈
- Quarterly profit growth of 111% shows strong recovery.
- Institutional inflows (FII and DII) reflect confidence in the company.
Industry 🌐
- Industry P/E at 38.4 suggests sector trades at premium valuations.
- Graphite electrode sector benefits from steel demand cycles and global industrial recovery.
Conclusion 📝
HEG is consolidating with bearish bias, trading below its 50 DMA but supported by the 200 DMA. RSI near oversold and negative MACD confirm weakness, while low volume participation limits breakout potential. Entry near ₹510–₹525 offers margin of safety, while exits around ₹560–₹580 provide profit-taking opportunities. Fundamentally supported by strong PAT growth and institutional inflows, but weak ROE/ROCE and stretched valuations limit upside. Traders may play the consolidation range, while long-term investors should accumulate cautiously given sector cyclicality.
Would you like me to extend this into a peer benchmarking overlay (comparing HEG against peers like Graphite India, Rain Industries, and other electrode producers) so you can evaluate relative strength and sector rotation opportunities?