HEG Limited

HEG.BO

Hardware, Equipment & Parts · Technology

Price

₹710.40

-1.45 (-0.20%)

Market Cap

₹137.15B

Exchange

Bombay Stock Exchange

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Strong

Cash Flow

Good

Stability

Mixed

Valuation

Good

Dividends

Weak

Track this stock — start free trial

Winston Score History

The full picture

HEG Limited is an Indian company that makes graphite electrodes, which are large carbon rods used in electric arc furnaces to melt scrap metal into new steel. Its main customers are steel manufacturers around the world who use these electrodes in their furnaces. HEG is one of the largest graphite electrode producers in Asia and operates one of the biggest single-site electrode plants globally, located in Madhya Pradesh, India.

The company sells its graphite electrodes directly to steelmakers, earning revenue each time customers buy these industrial consumables — electrodes wear down during use and must be replaced regularly. HEG sells both in India and internationally, exporting a significant share of its output to markets in Europe, Asia, and the Americas. Its main competitive advantage is its large, low-cost integrated manufacturing facility, but the business is highly cyclical, meaning profits rise and fall sharply with global steel production levels and electrode supply-demand swings.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+14.5% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-54.5% YoY

YoY Growth Rate

Earnings declining

R&D Spend

₹0/ year

0.0% of revenue

Below sector average (15%)

Research and development spending

Insider Activity

59.7%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

₹18.3B cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

HEG Limited is a rare growth stock that's already generating positive cash flow while growing at 14%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

−0.0% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 193.0M (2022) → 193.0M (2026)

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

36.3%

Modest — 36.3% gross margin

Profit after running costs

Operating Margin

16.3%

Healthy — 16.3% operating margin

Return on the money invested

ROCE

11.7%

Below par — 11.7% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Growth

Sales growth

Sales YoY

+20.5%

Fast-growing sales (+20.5% YoY)

Profit growth

EPS YoY

+82.4%

Earnings growing fast (+82.4% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Cash Flow

Profit that turns into cash

Cash Conversion

67%

Modest — 67% of profit becomes cash

Spare cash per sale

FCF Margin

6.3%

Modest free cash flow (6.3%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Stability

What it owes vs what it owns

Debt / Equity

N/A

Data not available

Covers its interest

Interest Cover

14.31x

Comfortably covers interest (14.3x)

Interest coverage above 8. Profits cover interest many times over.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Valuation

Price vs profit

P/E Ratio (TTM)

38.2x

Pricey — P/E 38.2

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year

P/E vs Forward

+14.5

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (38.2 → 23.7)

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Dividends

Dividend

Dividend Yield

0.50%

Small dividend — 0.50% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

-18.4%

Dividend cut (-18.4% YoY) — warning sign

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

🔒 See full fundamentals and if they are improving or declining — click here for your free trial now.

Start free trial