Date:05/03/2005 URL: http://www.thehindubusinessline.com/2005/03/05/stories/2005030502401300.htm

Back HEG at new high on better profit hopes

Our Bureau

Kolkata , March 4

THE HEG Ltd stock today created a new 52-week high on the bourses on prospect of better profitability.

The stock today finished at Rs 136 with total volume of over 2.13 lakh shares on the BSE and NSE. Today's closing price marked a gain of around 35 per cent in the last one month.

According to brokers, the stock has been moving up steadily demand and price for steel items world over has registered an upward trend.

The LNG Bhilwara Group outfit, HEG manufactures graphite electrodes and sponge iron.

Mr Gaurav Dua of Anagram Stockbroking, considering firm price trend and demand, the P/E multiple of 13 appears attractive.

HEG exports to most of the major players across various regions in the world.

Its international client list includes ThyssenKrupp , Riva Group, Ispat International, Nucor, US Steel, North Star, Pohang Steel and Dong Kuk.

In the domestic market, it supplies to Tata Steel and SAIL.

Exports account for 80 per cent of the current production of HEG. In electrodes, its plant is considered among the largest producers in the world. Its hydropower unit also makes its product cost efficient compared to it competitors.

According to a steel analyst, demand for graphite electrodes and sponge iron is on the upswing as more and more players are opting for electric arc furnace route for steel making. Steel produced through EAF route now constitutes 33 per cent of the global steel production justifying demand and price rise.