Thursday, April 21, 2016

HEG Ltd @ 162

1. HEG Ltd is a 10 rupee face value diversified company. The main business of HEG is graphite which accounts for 80% of his revenue but company exposer is in hydro-power, ACF, Carbon block sector make it diversified company. 

Short Brief of HEG Ltd Business Model:- HEG Ltd set up in 1977, in technical and financial collaboration with Societe Des Electrodes Et Refractaires Savoie (SERS), a subsidiary of Pechiney of France. 
Graphite
HEG is now the largest integrated graphite plant in the world. Spread over an area of about 170 acres, HEG (graphite division) has facilities for production of Graphite Electrodes and Graphite Specialities. Its plant is located at Mandideep near Bhopal (MP).
The plant has a annual capacity to make 66,000 MT of UHP grade electrodes. 
It has three captive power generation facilities which can together produce around 77 MW which fulfils almost the entire requirement of the graphite plant.
HEG also has a dedicated R&D Set-up for Carbon and Graphite. 
Power
Heg Ltd  the group's first hydropower project of 13.5 MW rated capacity in Tawanagar, district Hoshanabad (M.P.) which was commissioned in 1997. The power generated at this unit is wheeled to the graphite plant at Mandideep.
Activated Carbon Fabric (ACF)
ACF is a flexible form of activated carbon. The activated carbon fabric is mechanically weak but highly porous in nature. Due to this, it possesses unique characteristics as compared to conventional activated carbon, which is commonly used in granular, palletised, powdered and moulded form. Due to a thin fibrous shape in activated carbon fabric, a fast intra-particle adsorption kinetics takes place in gas and liquid phase adsorption.
Molecules/atoms of pollutants have an affinity towards activated carbon fabric surface by physical adsorption at low temperatures.
In physical adsorption there is a Van Der Waals interaction, having a long range, but weak forces. Molecules of pollutant bouncing across the activated carbon fabric surface gradually loses its energy and finally comes to rest on it. Due to weak bonds in the physical adsorption molecules can be removed from the activated carbon fabric surface by giving a heat energy. This property is utilised in regenerating activated carbon fabric.
Features of ACF
  It is of minimum 90% pure form of activated carbon
 It is soft and easy to handle
 It has a BET surface area (SBET) of the range from 1,000 to 2,500 m2 g-1 with a high degree of adsorption and desorption characteristics. Effective adsorption is several hundred times higher than that of GAC, PAC or palletized activated carbon.
 ACF is made up of filament yarn, due to which ACF is electrically conductive and hence it can be regenerated by passing a low voltage current across the ACF surface or by heating ACF at 100 oC for 15 to 30 minutes.
 The distribution of pore size is in narrow range < 10 nm.
Usage
ACF is used in :
 Air-conditioner filters.
 Air purifying filters.
 Clean rooms.
 All other types of pollution control filters.
 Anti pollution masks - for personal protection against gaseous vapours / fumes and bad odours.
 Refrigerator deodouriser - to arrest odours in refrigerators.
 Cigarette filters - to trap harmful chemicals present in cigarette smoke.
Carbon Blocks
HEG also makes Fine Grain Carbon Blocks for various applications on special orders. These blocks are used by the customers to make value added products like Heat Exchangers, etc.
Graphite Specialities
HEG has a small graphite Speciality division to cater to the requirements of customers who need Graphite Products in specific sizes and shapes. These are manufactured to individual customer requirements as per specs and requirements Sorce:-http://www.hegltd.com/products.aspx (company website).
2. Year high of HEG Ltd is 227.70 year low was 116.10 and stock traded at 162, Year high/ low ratio is below 2  so I think price of this stock is stable for fresh buy,  If you are new reader of my blog and not familiar with my research terms then please see my research terms at this link
3. Promoters of HEG Ltd hold 58.79 %  . Promoters holding is good with nil pledged stock See full list of public shareholding including FII and DII here:-
4.HEG Ltd This stock have regular dividend paying history since last 5 year HEG Ltd pay  3 to 8 rupee dividend per year.
EX DatePurpose
14/09/2015Dividend 3.00
14/08/2014Dividend 6.00
06/09/2013Dividend 8.00
07/09/2012Dividend 5.00
02/09/2011Final Dividend 5.00
5. Base price of HEG Ltd is 201.35, So After the recent breakout of 21 April 2016 stock still traded 20% Below from base price So I think from 162 to 180 this stock is a great buy for long term.
6. No any bonus issue right issue and bulk deals is recorded  in last 2 year.
7. HEG Ltd net sale per share of FY 14-15 is 310.40.
8. Net sale per share is also good and  Stock is traded near 50% below  from his net sale per share.
9. Book value of HEG Ltd is 235.42 So in book value term this stock is a value buy at CMP.
8. Overall HEG Ltd is good multibagger stock for long term holding.
9. 200 DMA of HEG Ltd is 160.75 So at CMP 162 HEG Ltd give a positive breakout above 200 DMA ,So I think this stock is also good for trading so I give a trading call on HEG Ltd at CNBC Awaz Advisorymandi website.
I put targets of this stock 194.40 and 224.50 on CNBC Pro advisory championship with a stop loss of 145.80 ( For trading purpose). 
My regular readers already knew that I never use stop loss in my personal buying read more details about my investment style here:- 
If you read my book "The Winning Theory in Stock Market " then you knew that fundamental target for HEG Ltd is 224.50
10. My recent updates :- Jayaswal Neco Industries Ltd @ 8.16
11. Disclaimer:- This is not an advisory service to buy or sell. The contents of “this research report” are only for educational purposes. No liability is accepted for any content in “this research report”. The author is neither a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time.The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions. Please  read full disclaimer at the bottom of my blog.
12.Discloser:- I Mahesh Chander Kaushik author of this research report is an existing research analyst and passed NISM certification for research analysts. I am also registered under SEBI(RESEARCH ANALYSTS) REGULATIONS, 2014 ( SEBI Registration Number INH 100000908 ) hereby disclose about my financial interest in the subject company and the nature of such financial interest:- 1 Me and my associates or relatives have not hold any share of HEG Ltd so my personal interest is not included in this stock. 2. Me and my associates or relatives have not any actual/beneficial ownership of one percent or more securities of the subject company ( HEG Ltd). 3. Me and my associates or relatives have not any other material conflict of interest at the time of publication of the research report. 4. Me and my associates or relatives have not  received any type of compensation from the subject company(HEG Ltd) in the past twelve months. 5. I am not served as an officer, director or employee of the subject company ( HEG Ltd). 6. I have been not engaged in market making activity for the subject company (HEG Ltd).

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disclaimer:-Trading in stock market is very risky. This website is not perfect. This is not an advisory service to buy or sell. The contents of “maheshkaushik.com” are only for educational purposes. No liability is accepted for any content in “www.maheshkaushik.com”. Subject to pindwara(india) jurisdiction only. The author is neither a registered stockbroker nor a registered advisor and does not give investment advice.. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, author of this website is not a trend technical analyst.