By Aditya Raghunath
Investing.com -- Stocks of companies like Graphite India Ltd. (NS:GRPH) and HEG Ltd. (NS:HEGL) are up 65% since February 1. Graphite India is trading at Rs 489.1 up 55% from its closing price of Rs 314.65 on January 29. It’s a similar case with HEG that is trading at Rs 1553.7, up 65% from its January 29 closing price of Rs 936.25.
The reason for this move is a correlation with the increasing demand of domestic steel companies. Both these companies manufacture graphite electrodes that are used in steel manufacturing as a heating element.
Graphite India reported revenues of Rs 499 crore, down 22.4% from Rs 643 crore in the corresponding quarter last fiscal. Net profit came in at Rs 26 crore. The company had booked a loss of Rs 353 crore in the corresponding quarter last fiscal due to higher material costs. HEG hasn’t declared its results yet.
Brokerage firm ICICI Direct has recommended a ‘buy’ on the stock with a price of Rs 520. In a moneycontrol.com report, Vikas Jain of Reliance (NS:RELI) Securities had recommended booking profits in Graphite India when the stock hit Rs 448.
Brokerage firms have not yet issued a recent call on HEG. The last call on the stock came in December 2020 when Jefferies raised its target price to Rs 1,400.