HEG Stock Surges 8%: Is This the Next Big Multibagger?

Experts recommend SBI, ICICI Bank, NMDC, Divi’s Lab, DCB Bank, and Piramal Enterprises.

HEG Stock Surges 8%: Is This the Next Big Multibagger? For intraday trading on December 2, 2024, market experts Nooresh Merani and Kunal Bothra have recommended six top stocks to buy. These include State Bank of India (SBI), ICICI Bank, NMDC, Divi’s Lab, DCB Bank, and Piramal Enterprises.

• SBI: Kunal Bothra targets a price of Rs 880 with a stop loss at Rs 820. The current market price (CMP) is Rs 838.70.

• Divi’s Lab: Bothra suggests a target of Rs 6400 with a stop loss at Rs 6080, CMP: Rs 6183.25.

• NMDC: He recommends buying for a target of Rs 240, with a stop loss at Rs 225. CMP: Rs 230.

• ICICI Bank: Nooresh Merani has set a target of Rs 1400 with a stop loss at Rs 1270. CMP: Rs 1298.70.

• Piramal Enterprises: Merani recommends this stock with a target of Rs 1350 and stop loss at Rs 1140. CMP: Rs 1184.90.

• DCB Bank: Merani targets Rs 140 with a stop loss at Rs 118. CMP: Rs 123.75.

Additionally, several brokerages have provided stock recommendations:

• HUL: Axis Capital has an ADD rating with a target of Rs 2850, while Goldman Sachs and UBS have NEUTRAL ratings with targets of Rs 2775 and Rs 2800, respectively.

• RBL Bank: IIFL Securities maintains an ADD rating with a revised target of Rs 180, while Investec lowers its target to Rs 170.

• IndusInd Bank: Morgan Stanley maintains an EQUAL-WEIGHT rating with a target of Rs 1150.

• Titagarh: HSBC lowers its target to Rs 1425, though it maintains a BUY rating.

• Bajaj Finance: Jefferies maintains a BUY rating with a target of Rs 8400.

• Petronet LNG: UBS upgrades to a BUY rating, raising its target to Rs 400 from Rs 320.

HEG Stock Surges 8%: Is This the Next Big Multibagger? On December 3, 2024, HEG, a midcap company in the electrodes and welding equipment sector, saw its stock price surge by 8.23%, outperforming the sector by 3.66%. The stock reached a high of Rs 480, marking a 9.84% increase from the previous day’s close. Despite high volatility, with an intraday fluctuation of 6.65%, HEG has been consistently trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a strong upward trend.

In the broader Electrodes & Welding Equipment sector, HEG outpaced its peers with a 4.57% gain. On a 1-day comparison, HEG’s performance was impressive at 9.54%, compared to the Sensex’s modest 0.21% increase. Over the past month, HEG rose by 7.57%, while the Sensex gained only 0.87%.

MarketsMojo has issued a ‘Hold’ recommendation for HEG, suggesting investors maintain their positions in the stock. With its solid performance and a positive outlook, HEG remains a strong contender in its industry.

HEG Stock Surges 8%: Is This the Next Big Multibagger? On November 28, 2024, HEG’s stock rose by 4%, reaching Rs 431.4. This performance stands out within the BSE Capital Goods Index, which saw a modest increase of 0.2%, settling at 70,496.0. Among the top gainers in the index were Adani Green Energy (up 10%) and Lakshmi Machine (up 2.7%), while ABB (down 1.4%) and L&T (down 0.4%) were among the top losers.

Over the past year, HEG’s share price has increased by 37.8%, from Rs 313 to Rs 431.4. In comparison, the BSE Capital Goods Index has surged by 44.3%. The top performers in the index during this period were Bharat Electronics (up 117.4%), Siemens (up 107.1%), and Hindustan Aero (up 96.3%).

The benchmark indices also showed movement, with the BSE Sensex declining by 0.9% to 79,537.5. The top losers were Infosys (down 2.8%) and M&M (down 2.7%). Similarly, the NSE Nifty dropped 0.7%, with Infosys and Tech Mahindra among the top losers.

In terms of financial performance, HEG reported a slight 1.2% year-on-year increase in net profit to Rs 619 million for Q2 FY24, while net sales dropped 7.6%. For FY24, the company reported a significant 41.5% decrease in net profit, totaling Rs 3,117 million, with revenue declining by 2.9%. HEG’s price-to-earnings ratio stands at 61.2 based on the past 12 months’ earnings.

HEG Stock Surges 8%: Is This the Next Big Multibagger? HEG Ltd. (NS:HEGL), a leading graphite electrode manufacturer, saw its stock price plummet by 80.12% in early trading on October 18, 2024, opening at ₹511 compared to the previous close of ₹2,570.80. This sharp decline was initially surprising to investors, but it was caused by the company’s 5:1 stock split, which reduced the face value of its shares from ₹10 to ₹2, resulting in an adjusted stock price.

A stock split does not affect a company’s market capitalization; it simply adjusts the price per share while keeping the total value of the investment the same. The goal of the split is typically to enhance liquidity and make the shares more affordable to retail investors.

Despite the price adjustment, HEG’s fundamentals remain strong. Jefferies, a global brokerage firm, has issued a ‘buy’ recommendation for HEG, citing the company’s solid financial health and growth potential. HEG recently expanded its electrode production capacity, which is expected to drive future growth. Jefferies forecasts stable demand for graphite electrodes, with rising prices expected over the next few years.

The stock split aligns with HEG’s strategy to increase share liquidity, and analysts expect that the lower share price will attract more retail investors. Post-split, HEG shares were trading at ₹511, showing stable demand. Jefferies remains optimistic about the company’s future growth prospects, underpinned by its strong balance sheet and global market position.