HEG Limited May Soon Make a Move

Globally, HEG Ltd. (NS:HEGL) is a top producer and exporter of graphite electrodes. HEG has a captive power generation capacity of 76.5 MW and a graphite electrode production facility in Mandideep, Madhya Pradesh (two thermal power plants and one hydropower plant).
 
After investing Rs 1,200 crore at its current facility at Mandideep near Bhopal, Hindustan Electro Graphites (HEG) declared that it will surpass all other graphite-producing companies in the world.
 
According to a government official, Shivraj Singh Chouhan, the chief minister of Madhya Pradesh, was informed by HEG chairman and managing director Ravi Jhunjhunwala that the state is considering a capital investment of Rs 2,000 crore over two phases.
 
The unit will be the largest company in the world for the manufacture of graphite in the first phase once the business's industrial plant in Mandideep is expanded for graphite manufacturing with a capital investment of Rs 1,200 crore, Jhunjhunwala informed Chouhan in a meeting here, the official said.
 
By December 2022, the project's initial phase is most likely to be finished. The unit in the state that manufactures graphite anodes is making fresh investments during the second phase. Jhunjhunwala stated that the proposal for the new facility, which will cost Rs 800 crore, has been created in response to the rising demand for electric vehicles.
 
Chouhan informed Jhunjhunwala that the state government will fully cooperate with the expansion project. The stock is quoted at 1055 levels with a volume of 31000 during today's trading session, which is extremely light. The stock's 52-week range includes a high of 2317 and a low of 891. The P/E ratio is 7.61, the market capitalization is 4065 crores, and the book value is 1014.
 
At 960 levels, the stock has excellent support. Stocks are consolidating with a dry volume between 1100 and 1040 levels. In the short term, we can expect the stock to challenge the 1400 level if it trades over 1110 levels with strong volumes.